First time in almost all cases can be daunting yet exciting. When you finally reach the legal driving age, we understand how you cannot contain your enthusiasm to learn driving. Only after passing your driver’s test can you legally drive on your own.
The minute you get behind the wheel, bear in mind that you will now onwards be responsible not just for yourself but also for others. This brings us to the second most important aspect of driving i.e. getting a car insurance. If you are a new driver, getting a car insurance can be complicated. Here we have 5 tips about car insurance that will guide you if you’re a new driver.
1. Do not claim your insurance for minor damages – A motor insurance policy works on a “use it or lose it” basis. You pay a certain premium amount yearly. If you do not make any claim in the tenure of your policy, you will lose the premium amount. However, in return you can avail a No Claim Bonus. This amount is considerable and keeps increasing as the years go by. Thus, it is advised to not make a claim for minor damages.
2. Know the value of your policy – The value of your insurance policy is calculated based on the Insured Declared Value or the IDV of your car. This can be calculated using this formula:
IDV = (Manufacture’s listing price – Depreciation) + (Accessories not included in the listing price – Depreciation)
If you ever doubt the price quoted, you can use this formula to calculate the price yourself. Keep in mind that if the figure quotes are less that the market rate, although the premiums will be lesser, the claims will also be lower.
3. Comprehensiveness – Being a new driver, you are more prone to make mistakes. Thus, for your security and the security of others on the road, it is important to have a comprehensive insurance plan. This would include a personal accident cover, damage caused to the vehicle and a third-party liability cover. The personal accident cover and own damage cover would protect you and your vehicle financially, whereas the third-party liability cover will protect damage or loss of the third party.
4. Making a claim – Now that you have a comprehensive car insurance policy, it is important that you know how to make a claim when the need arises. Most insurance policies have the facility of a cashless garage as well.