Best 6 Month Auto Insurance for New Drivers
Auto insurance policies normally have a term of one year. The concept of short-term policies with a tenure of less than one year is still new in India. If you are looking for Best 6 months auto insurance for a new driver specifically you will have to customize your policy. Short-term auto insurance is mostly needed by those drivers who don’t drive often, learning to drive, relocating for a short period, or renting a car. In all such situations, a 12-month policy is not required as it will cost more.
What comes under short-term Auto Insurance?
As short-term insurance plans are still picking up in India. We will discuss some of the proposed types of auto insurance plans which provide coverage according to the usage of the vehicle.
1. Pay as you drive/Pay per km
It is a pilot project of IRDAI in collaboration with other insurance companies. Pay as you drive is insurance where the premium is charged based on the distance covered by the vehicle. This reduces the auto insurance price as per your usage because you pay only for the distance you drive. It offers third-party liability insurance and also comprehensive insurance. The premium of third-party insurance is fixed by IRDAI so it doesn’t change but the premium of comprehensive insurance does change as per the Distance. Normally a comprehensive plan for 2 similar cars would be the same even if one has been driven for 30000 km and the other for just 5000 km. But it won’t be the same with a Pay as you drive insurance plan.
Requirements for a Pay as you drive policy
- You need to submit the odometer reading of your car, the total distance travelled, to the insurer.
- You will then choose a ‘distance to be travelled’ as per your requirement.
- You will be required to install a telematics device in your car and a telematics app on your phone. This device will track the distance traveled and the app will have analytical features giving you driving-related information. This app will not just track distance traveled but also the driving pattern will be analyzed.
In India, this kind of tracking and such auto owners insurance plans are still very rare. It can be the best car insurance for first time drivers.
Benefits of Pay as you drive policy
- Affordable as premiums are less due to less usage.
- Customizable policy as it allows add-ons to be added.
- Installation of telematics devices is free of cost.
- Discount on own damage insurance premium.
2. Monthly auto insurance/Temporary Insurance
Monthly or temporary insurance is a plan purchased for a short period of time which is less than a year like for a month or 6 months. However, this type of policy is not prevalent in India but it is quite common abroad.
A short-term insurance plan works in special situations like
- This is affordable car insurance for young drivers who want to learn to drive
- Drivers driving rental vehicles where they don’t own the vehicle, for example, auto rickshaw insurance, taxi insurance, etc. where drivers often don’t own the vehicle, they take it on rent to earn a living and they can not afford high new driver insurance costs.
- Non-owners driving a borrowed private vehicle for a short period.
- When you have purchased a car for a short term and will resell it.
- When you are an inexperienced driver and looking for cheap young car insurance.
- When you hire a temporary driver
- If you don’t use your car often
Usual requirements for a temporary auto insurance plan:
- Personal details like name, address, profession
- Ids like driving license
- Address proof
- Car details like the make, model, fuel type, engine capacity, etc.
Benefits of temporary Auto Insurance Plan
- Instant Coverage.
- Coverage against third-party injuries.
- Coverage for third-party property damage.
- Fully customizable coverage duration.
- Personal accident cover for the driver.
- Option to purchase the plan 30 days before the start date.
- Peace of mind.
3. Rental car insurance
The 3rd and the most common reason for opting for short term insurance is for rented vehicles. Like foreign countries, renting vehicles without drivers has also gained popularity in India over the years. The primary coverage under rental auto insurance is:
- CDW, or collision damage waiver, wherein, in the case of a collision, the liability of the driver towards payment to the rental agency would be covered under this plan. However, reckless driving, adventure sports, etc. is excluded under the ambit of the plan.
- Third-party legal liability along with
- Theft coverage and roadside assistance.
How to choose the best Auto Insurance for New Drivers?
For a new driver first car insurance is very important as the risk of accidents is high but at the same time, the coverage should be affordable. A young and new driver’s first insurance needs to have wider coverage along with liability coverage. Coverage for own damage and personal accident cover is a must, so comprehensive insurance is advisable for new drivers.
Add-ons like roadside assistance are very helpful as they cover on the road breakdowns and provide on-the-spot repairs. Similarly, zero depreciation cover can help in high claim settlements.
If you install certain security devices in your car, you can get discounts on your premium, as you already need a good amount of coverage for being a new driver.
Usage-based insurance plans are good for new drivers not just because they are affordable but also because of the analytics feature of the telematics device which will help you analyze your driving skills. If you are good and practice safe driving habits, it will help you get more discounts.
Another important factor to keep in mind is that if you are a new driver, choose a low-cost car and not a premium one because it will not only keep in check the cost of damages but also it will be easier for you to get insurance.
Finally, shop around online to find the best place to get car insurance for young drivers and compare quotes from different insurers, check their credibility, claim settlement ratio, look for discounts, and their network of garages offering cashless repairs. Being a new driver knowing and understanding auto insurance is as crucial as learning driving because insurance is something you will always need as a driver. Understanding various features, types of coverage, new add-ons will help you upgrade according to your changing requirements and you will be able to make informed choices independently.