Knowledge Centre

Car Insurance and Youth

Published on June 22, 2020. EST READ TIME: 5 MIN

Driving cars can be convenient, fun and even save a lot of time. But, you must have your third-party liability cover insurance while driving a car as it is mandatory as per the Motor Vehicles Act, 1988. Car insurance can be termed as an agreement by which an insurance provider commits to providing coverage against any liabilities or damages associated with an insured car.

Car insurance is important as it reduces your financial liabilities and also ensures the protection of your car. The younger generations are not always aware of all the traffic rules or do not completely grasp the consequences of violating traffic rules, driving cars without proper license and insurance. However, it is necessary to bring awareness among the youth of the country that these traffic rules, regulations on insurance and license are an effective way to maintain their security.

Cars and Today’s Youth

Driving cars is a passion for the younger generation today. Driving swanky cars, car racing, etc. can be a way to show off among friends as well. Today’s youth believe in speed and driving off their cars with great speed on the roads. However, this has become a major cause of road accidents in India.

With the third-party liability car insurance being mandatory, it is an effective way of ensuring financial security and even security from legal complications. With the third party liability cover, even if there is a car accident the liabilities are reduced due to the financial support provided by the insurance. Car insurance would provide coverage against the lawsuits that includes the legal fees that have been brought up against the involved car driver/owner thus, saving you from legal repercussions arising from the accident. Moreover, with a comprehensive car insurance policy, the insured car and its driver/owner are secured against the damages or injuries that occurred due to an accident.

When young drivers look for car insurance, there are some basic tips, which they must follow including avoiding unnecessary modifications into your car, selecting a car from lower insurance group, reducing threats to your car by using a good alarm system or by using a protected garage, etc. This helps the young drivers in obtaining maximum coverage at nominal premium.

Importance of Add-Ons

Add-on covers in car insurance will help provide additional protection to the insured car and also enhance the basic car insurance policy. Add-on covers can be purchased along with a comprehensive car insurance policy,as the basic policy may not include some of the additional coverage needed in case of the occurrence of damages in an accident. Depending upon your requirements, you can select the necessary add-ons and this will help you save a lot of money that you would have paid from your pocket in times of need.

Some of the common add-ons which are available with a car insurance policy are:

a. Zero Depreciation Cover

b. No Claim Bonus Protect Cover

c. Return to Invoice Cover

d. Engine Protect Cover

e. Roadside Assistance Cover

f. Key Replacement Cover

Conclusion

Hence, car insurance policy is extremely essential and a comprehensive car insurance policy with required add-ons can give you a stress-free ride in your favorite car.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Mr.S. Gopalakrishnan recommends"HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process."


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