The idea of having your car as a young adult is thrilling. After receiving your driving license, you can not wait to take your friends on a long drive. In your enthusiasm to drive your vehicle, you must not forget to buy a car insurance plan that is mandated by law.
As a young adult having a car for the first time, it is essential to get an insurance plan. Car insurance protects you against car-related mishaps. For instance, if you meet an accident on rough terrain due to which you damaged your car, your insurance plan could cover the cost of such expenses.
However, with numerous options available in the market, it would be wise to explore car insurance quotes and choose a policy that offers maximum coverage and benefits Here are the crucial things to keep in mind while getting car insurance for the first time.
1. Car insurance company
When you compare car insurance policies, it is imperative to, first of all, consider the insurance company and its services. A reputed and renowned company can offer hassle-free assistance during the time of claim. One way you can find the right insurer is by checking their customers’ reviews and testimonials which offer great insight into their services.
2. Car insurance type
When you compare insurance plans, make sure to assess your needs and preferences, and then choose a plan that serves your needs. You can choose to opt for third-party car insurance or comprehensive car insurance. Know each insurance type’s features and benefits and decide which one you want to focus on.
Also, it is worth noting that you will get nowhere by comparing multiple types of insurance policies. Choose only one type of insurance plan and compare different insurance companies’ offers.
3. No-Claim Bonus (NCB)
No-Claim Bonus is a reward provided by your insurance company for not raising claims during the insurance policy period. It is a discount that is reflected on your insurance premium when you renew your insurance plan. When you compare insurance plans, choose a plan that has a higher NCB. The higher the NCB, the lower premium you will have to incur upon renewal.
4. Insured Declared Value (IDV)
Insured Declared Value (IDV) is the value of your car calculated after considering factors like the age of your vehicle and the damages caused to it. Keep in mind that your insurance company will only pay the insured declared value of your car when you claim your insurance.
The insured declared amount of your car differs from insurer to insurer. Before considering the IDV offered to you by your insurer, it is better to keep a number in mind that is equivalent to the current market value. When you compare car insurance policy, make sure to get an IDV closer to your calculated value.
5. Add-on Features
The best part about a car insurance plan is that you can have add-ons based on your needs. For instance, you can get engine protection cover, roadside assistance cover, daily allowance cover, passenger cover, consumables cover, key replacement, etc.
It is crucial to keep in mind that additional add-ons will cost slightly higher insurance premiums. So, when you compare car insurance policy, choose features that serve your needs.
As a young adult, it is tempting to get your first car to go on long drives. However, it is worth noting that a car insurance plan is as important as getting a driving license.