Tips to Choose Best Car Insurance Plans For Young Car Owners

Posted on: Jun 18, 2025 | 4 mins | Written by: HDFC ERGO Team

Tips to Choose Best Car Insurance Plans For Young Car Owners

Many young professionals and college-going students rely on their cars to get to the office or college. While it surely sounds convenient and practical, some are seen to overlook the importance of having car insurance coverage for their four-wheeler. In this article, we will discuss the necessity of car insurance in India and share some insights to help students and young professionals get the right vehicle insurance plan.

Why buy car insurance in the first place?

Car insurance policy is a very important policy that protects your car from various unwanted damages. While we understand money can be tight for young working professionals and college students, one must still not forget to get vehicle insurance for their car. Here are some main reasons why you need car insurance:

1. Legal requirement

In India, the Motor Vehicles Act of 1988 makes it compulsory for all four-wheelers that operate on public roads to have a valid vehicle insurance. So, to be able to drive your car in India legally, you need to ensure that it has a valid vehicle insurance with at least third-party damage cover.

2. Financial safety

With car insurance, you can get financial coverage for third-party liabilities and own damages sustained by the car due to any insured peril. It helps you make the necessary compensations and repairs without draining your wallet.

3. Safe driving habits

As a car owner and driver in India, you must follow traffic rules and regulations. As per reports, 33,350 fatal road accident victims in 2022 in India belonged to the age group of 18-25. Hence, it is your moral and essential duty to get car insurance for your four-wheeler as a precautionary measure.

What should students and young professionals consider when buying car insurance in India?

When choosing car insurance in India, students and young professionals need to carefully consider the following pointers:

1. Type of insurance

Students and young professionals who are planning on buying car insurance in India for the first time may feel overwhelmed by the available choices. One should note that there are mainly three types of car insurance plans in India, namely

• Third-party car insurance: It is the most basic plan offering coverage for only third-party liabilities.

• Standalone own damage car insurance: It only offers coverage for the vehicle’s damages caused by accidents, fire, theft, or other perils.

• Comprehensive car insurance: It is the most exhaustive plan, offering coverage for both third-party damages and the vehicle’s damages.

Considering the threats on and off the road, it is needless to say that third-party car insurance is often not enough. Spending the extra cash on comprehensive car insurance is the way to go.

2. Insurance premium

When picking car insurance in India, ensure it fits your ideal coverage and budget needs. Policies are usually offered every year, and you need to pay the premium upfront. Factors like vehicle location, make & model, coverage type, add-ons, etc., affect the premium of young professional or student car insurance in India. It may be difficult for students and young professionals to shell out such an amount. However, it is an essential purchase that they need to fit into their budget. With proper research, you can easily find affordable car insurance for youth in India.

3. NCB and discounts

When picking an insurer for your student or young professional insurance for cars, make sure to take advantage of the available discounts and offers. Also, try to look for student discounts on car insurance plans to save some extra change on premiums. Insurers also offer attractive discounts on premiums during renewals with No Claim Bonus. It is a reward for driving carefully, making no claims within the policy term and renewing the plan on time. With it, individuals can enjoy comprehensive coverage for their car at significantly lower costs, which is ideal for college students and young professionals.

4. Claims

With the pressure of classes, projects and office work, students and young professionals barely get any time for themselves. If you are one of them, you will not enjoy dealing with the hassle of car insurance claim settlements. Hence, pick an insurer that has a good reputation in the market, a high CSR and offers fast and easy claim settlement procedures. Also, prefer providers with nearby cashless garages so you can easily get your car repaired without worrying about accumulating funds for upfront bill payment.

5. Add-ons

Students and young professionals often try to settle for the minimum to save some money on car insurance. In doing so, they overlook the importance of add-ons. Available with comprehensive and standalone own damage car insurance plans, add-ons offer extra coverage benefits at an additional cost. For example, if you have opted for the roadside assistance add-on, you can get emergency assistance for stuff like towing, on-spot minor repairs, flat tyre replacement, etc., in case your car breaks down in the middle of the road. Add-ons like this can come in clutch for young car owners.

6. Assistance

When looking for car insurance, ensure the insurer has 24/7 customer support and claim assistance. This can be very helpful, especially for students and young professionals, who want solutions to their problems as fast as possible, so they don’t have to miss their next class or a day at work.

Useful tips to lower car insurance premiums

It can be a bit difficult for students and young professionals to afford car insurance with great coverage. However, they can easily reduce car insurance premiums to make plans more affordable by following these steps:

1. Choice of car:

Car insurance premium depends on the make, model, variant and age of your car. A general rule of thumb is that the more expensive the car is, the more costly its insurance is going to be. So, it is best to get a reasonable vehicle, which is practical and inexpensive to insure.

2. Safe driving practices:

As a young driver, make sure to follow all traffic rules and regulations and drive carefully. With a clean driving record, you can have lower car insurance premiums. If you have a bad driving record, you may be considered a higher risk and charged a higher premium.

3. Student discounts:

If the insurer offers student discounts, make sure to avail of such benefits when buying student car insurance in India. Some insurers may even offer affordable car insurance for youth.

4. Compare plans online:

Consider buying car insurance plans online to get access to multiple plans across different insurers in just a few clicks. Also, compare top choices on the basis of premium, coverage and other parameters to find the best deal in your budget.

5. Avoid unnecessary coverage:

When buying car insurance in India, make sure to only pick the necessary add-ons (if any) and vehicle IDV. More coverage means higher premium rates, so keep that in mind.

Conclusion:

An essential part of growing up is taking responsibility and making smart decisions. Life is as exhilarating as it gets once you enter college or start your first job and get a new car. However, amid all that excitement, don’t forget to get car insurance coverage for your four-wheeler. Invest in comprehensive car insurance policy to make sure you and your car stay financially covered against accidental third-party liabilities and own damages.

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

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