Car insurance is important for all drivers, but it is especially important for teenagers. Teens are more likely to have accidents and get into accidents than adults. The main reason for this is that teens are more impulsive and less experienced on the road than adults.
Car Insurance can be one of the most expensive parts of owning a car. This is because car insurance prices vary widely depending on your age, where you live, and your driving record. The good news is that there are many different types of car insurance available to help reduce the cost of coverage.
The best car insurance for teen drivers in India are those that offer the most comprehensive coverage and have the lowest premiums. The cost of teenager car insurance will differ based on their driving habits, age, and where they live.
Cheap car insurance for teen drivers is important because it can provide protection from financial losses that may result from a driver's inexperience. Some of the common types of coverage offered by many providers include liability, collision, comprehensive, medical payments, uninsured motorist coverage, and underinsured motorist coverage.
Best Car Insurance for Teens:
Even if you completed your driving test and stay within the speed limit, expect high premiums as you begin you’re driving journey. The price of car insurance fluctuates depending on a variety of factors but one of the biggest determinants of that price is your age. Since teens and young drivers are just getting started driving, they are typically the costliest age to insure.
Choosing a company with coverage and discount options tailored to the needs of teenage drivers can be important. We chose these companies based on a review of their average rates, coverage offerings, discounts and third-party scores.
- Helps You Stay Legally Compliant: A car insurance helps you stay legally compliant as according to Indian Motor Tariff, every car owner is mandatorily required to have at least a third-party car insurance policy. The absence of which is punishable with a fine of Rs. 2,000 and/or imprisonment of up to 3 months.
- Protection against Third-Party Liabilities: A car insurance policy helps you mitigate third-party liabilities such as bodily injuries, temporary/permanent disability, and death as well as property damage. While, the compensation of third-party property damage is limited to Rs. 7.5 Lakh, there is no compensation cap in case third party bodily injuries, disability or death.
- Protection against Own-Damages: A car insurance policy helps you keep yourself financially secured against the own-damage expenses of your car. Damages incurred in road accidents, natural calamities, man-made disasters, fire, explosion, vandalism, etc. are covered under standalone own-damage as well as comprehensive car insurance plans.
- Coverage against Theft: A car insurance policy also provides coverage in case of theft of your car. In case your car gets stolen, your insurance company provides you with your car’s Insured Declared Value (IDV) which corresponds to the market price of your car.
- Personal Accident Cover: With a car insurance policy, you can also get a personal accident cover of up to Rs. 15 Lakh which offers a coverage in case of death, bodily injuries as well as disability of the policyholder in a car accident.
Top Car Insurance Companies for Teens in India:
Car insurance is a must have for all car owners in India. Here are the top car insurance companies in India that you can choose from. Based on our research, the following companies might be worth your consideration as you search for the best car insurance for teens in India:
|
Companies |
Discounts |
| “Economical and convenient services” |
Shriram Car Insurance |
- Save up to 50%
- Third party covers up to 7.5 lakhs.
|
| “Best for customizable premiums” |
Oriental Car Insurance |
- Save up to 75%
- Personal accident cover up to 15 lakhs.
|
| “Reliable Claim Assistance” |
Acko Car Insurance |
- Save 93% of up to Rs. 1200 on Car Insurance
- Premium starts at Rs. 2094
|
| “Low Premiums” |
Edelweiss Car Insurance |
- EMI Protector
- 50% discount on own damage premium.
|
| “Advanced Options” |
IFFCO TOKIO Car Insurance |
- Save up to 70% on premium
- Personal Accident cover is up to Rs. 15 lakhs
|
| “Best discounts for Advanced Purchase” |
Navi Car Insurance |
- Premium starts at Rs. 2072
- Third party liability is up to Rs. 7.5 lakhs.
|
| “Good Claim Settlement Ratio” |
Raheja QBE Car Insurance |
- Save upto 75% on Premium
- Customer oriented approach
|
| “Best services” |
Royal Sundaram Car Insurance |
- 100% invoice insurance price
- Personal Accident Cover is up toRs. 2 Lakhs.
|
| “Best for Budgeting” |
SBI Car Insurance |
- Save up to 85% on premium
- Third party price for less than 1000 cc cars is Rs. 1500.
|
| “Affordable Premiums” |
Universal Sompo Car Insurance |
- Personal Accident cover is up to Rs. 15 lakh for Owner-driver.
- Third Party up to Rs. 7.5 lakh.
|
How to Lower Insurance Premium for Teens?
Teenagers are more prone to accidents than other age groups this is due to rash driving, teen drivers' age factor, negligence driving, an influence of alcohol while driving, etc. There were 9 road accidents out of which 3 people were killed every 10 minutes in India. The insurance premium for teenagers is relatively high due to accidental risks involved.
- Cars with safety features:
Get the car, which has optimum safety features which reduce the car insurance premiums. For parents, a hike in insurance for their teens is a big dig, however, there are ways to reduce the car insurance premium for the teens.
- Share your old vehicle:
Instead of having a new insurance policy in the name of your child, change the old car insurance in the name of a teen. Teen policy or older cars have less premium comparatively.
- Economical vehicle:
The value of your vehicle determines the insurance premium insurer concludes the damage cost of repairs and replacement. Concluding the risk factors insurer will surge the premium.
- Gender differences:
The teenage boy's insurance premium is higher than girls', statistics revealed that teenage boys are prone to accidents than girls. Teenage boys have a harsh driving record history than girls, here “gender equality” doesn’t apply. Statistical numbers play a factor in concluding insurance premiums.
- Assign low-cost cars:
Your insurer asks you to assign the car to the family members, assign a low-cost vehicle to your child to reduce the car insurance premium. Designating a luxury car in the name of your teen will depreciate your wallet in the form of a premium.
- Low mileage discount:
Driving less than 6000 km per annum will tend to lower your premium, less driving lowers the risk of accidents.
- Driving class:
Take a driving class online to get skilled in Indian Traffic Rules and Regulations for safe driving this course reduces the teen insurance premium. Teenage drivers' training classes reduce your premium up to 8%.
- Car premium decreases annually:
For teenager’s year on year, there will be an ample decrease in the insurance premium if the policyholder owns good grades driving history. NCB additional discount is also the major factor in dwindling teenager car insurance premiums.
5 Best Ways to Find Cheap Car Insurance for Teens in India:
One of the most important decisions that a parent will have to make is deciding on car insurance for their teen. Here are some of the main points to consider when looking for cheap car insurance for your teen.
- Compare rates online and offline: Comparing car insurance rates can be a complicated process. There are many factors to consider in order to find the best car insurance for you. To help you make an informed decision, we will compare rates online and offline to see which one is better. You should always get quotes from more than one company to ensure that you get the cheapest rates possible.
- Ask your current insurer if they offer discounts: The best way to find a cheap teen car insurance policy is to do research online. You can also ask your current insurer if they offer discounts for teens. A good way to find out what car insurance company is the best for teens, is to ask your current insurer if they offer any discounts for teens or not.
- Switch to pay-as-you-go: In the current system, teens pay the same amount for auto insurance as adults. This is because they are considered to be at risk drivers and have a higher incidence of accidents. However, this is not always the case. Some teens are better drivers than adults because they drive less often or take more precautions when driving.
The best way to insure a teen driver is to switch to pay-as-you-go and set their rate based on their driving habits. This will allow them to save money on car insurance in the long run if they are careful drivers.
- Make safety modifications: The safety modifications that we can make to our cars include
- Putting on a seat belt
- Putting on a helmet
- Putting on a headlight
- Putting on a taillight
- Wearing reflective clothing at night
- Compare deductibles: You should compare deductibles with different companies because they can vary greatly in price and coverage.
Type of Car Insurance Coverage for Teenagers:
Select the type of coverage carefully to reduce your annual premium, if you opt for full coverage to the teen premium increases. Only collision coverage might acquire half of the premium, better to opt for a standard (comprehensive) plan to lower teen insurance plans.
Know all the factors that influence your teen insurance plan and take the required decisions to lower teen car insurance policy online. For the cheaper quotes, we choose the best insurers for teens to deliver you the cheaper quotes in the comprehensive plan. There are two types of car insurance policy available in the market, one is Only Third party car insurance and the other is Comprehensive insurance.
- Third Party Cover: It financially covers the insurance holder against any losses or damages caused to a third-party's property or the person suffered physical injury or death.
- Comprehensive Cover: The comprehensive insurance includes both the third party cover as well as the Own damage cover while the only third party liability insurance cover doesn’t include the damages to the car. Comprehensive cover also known as the Package policy covers the loss or damage to the vehicle due to an accident and other insured perils.
Any third party bodily injury or property damage is also covered under the comprehensive policy under the third party damage section. The own damage claims in comprehensive policy are settled by reducing the depreciation amount.
- Zero Depreciation Coverage: The Comprehensive cover in car insurance carriers can be equipped with add-ons or riders for extra coverage. One of the famous add-ons in auto insurance is the Zero depreciation cover or Bumper bumper cover.
The zero depreciation add-on covers the depreciation insurance costs incurred on the damaged part due to an accident. Zero depreciation cover can be included under the own damage section at the time of policy purchase by paying an extra premium to the insurance company.The zero depreciation cover can be considered as an extended version of the Comprehensive cover of the car insurance policy which can be availed on paying an extra premium.
Choosing the Right Car Insurance for Teen Drivers:
Looking for the best insurance for teens it is beneficial to compare insurance quotes from the best insurance company offers. Please read the terms and conditions before proceeding. Instead of getting quotes from each insurer, get a good student discount from the top insurance companies on PolicyBachat and save money.
- Type of car: Teen drivers are not as experienced and should not be driving high performance cars. Consider also the lower costs of insurance for more conventional vehicles.
- Review your deductible: This applies to all drivers, not just young teen drivers. Increasing deductibles, which results in sharing a greater portion of any comprehensive or collision loss, can reduce auto insurance premiums.
- Drop some coverage: For an older car that doesn’t have much worth, independent collision and comprehensive coverage may not be the best option. These policies only cover the current price of the vehicle - not for any potential value increase down the line.
Comparing Car Insurance for Teen Drivers
Every car insurance company is different, which is why it’s so important to shop and compare to find the best option for you. Examine these factors when shopping around for car insurance:
- Price: The amount of your budget should be an important determining factor when you're looking for a car insurance company. Some might have plans that are more affordable than others and vice versa.
- Coverage: Most companies offer the standard third party and comprehensive car insurance but more unique types of coverages.
- Discounts: Don’t assume you’ll have to pay the basic asking price for car insurance. Most providers include a variety of discounts that are fairly easy to get, such as for setting up autopay, being a safe driver, or bundling your insurance policies.
- Service area: Some companies only service a select region, so one of the first things to do is ensure that auto insurance from a given company is available for your address.
- Purchasing options: If you prefer to do all of your business online or through an agent, it’s critical to ensure these options are available through the auto insurance company you choose.
Cost of Car Insurance for Teenage Driver:
Teenage drivers are often considered to be high-risk drivers by insurance companies. This is because they have less experience on the road and are more likely to get into accidents as compared to older or experienced drivers. Moreover experienced drivers are more cautioned on road than young and new drivers. The good news is that by taking the time to shop around for cheap car insurance for teens, you can save some money in the process. The most common risk factors associated with young drivers include:
- Speed driving
- Driving inappropriately
- Drunk Driving or taking drugs while driving
- Driving recklessly at night
- Distracted while driving
- Ignoring seat belts while driving
- Lacking appropriate driving skills, etc.
If you're a teen driver, you can do a few things to save money on your car insurance premiums. One option is to purchase a used car instead of a new one. New cars tend to be more expensive to insure than used cars as they have a higher Insured Declared Value.
| Age |
Male |
Female |
Insured Declared Value (IDV) |
| 16 year old |
4902 |
4728 |
Rs. 7.36 lakhs |
| 17 year old |
4828 |
4527 |
Rs.6.26 lakhs |
| 18 year old |
4602 |
4189 |
Rs. 5.26 lakhs |
| 19 year old |
3891 |
3596 |
Rs. 7.62 lakhs |
| 20 year old |
3654 |
2416 |
Rs. 3.27 lakhs |
Frequently Asked Questions:
How Much Does Car Insurance for Teen Drivers Cost in a Month?
The cost of car insurance is different for everyone and depends on a set of specific factors, such as your age, gender, driving history, and credit score. Teen drivers generally have less experience behind the wheel, so they are more susceptible to incidents of all kinds on the road. To compensate for this lack of experience, teens are generally charged more. Our research into a selection of the top car insurance companies found the average annual price for teen drivers in an average of ranges from Rs. 2500 to Rs. 5000.
Is It Cheaper To Put My Teen On Their Own Car Insurance Policy?
No. It’s usually cheaper to keep a teen driver on a parent’s policy. There are some cases where a separate car insurance policy can be cheaper. For example, if a parent has a sports car on the policy, and the insurance company matches the teen driver with the costliest vehicle, then the combination of the car and novice teen driver could push rates sky high.
Can a Teenager Get Car Insurance?
Car insurance is mandatory for drivers with age of 17 year old. While different types of cars require different types of policies with varying levels of coverage, most policies provide coverage for the driver's personal liability.
How to Save On Car Insurance When Insuring a 17-Year-Old?
Although the price of insuring a teenage driver can be unnerving, there are numerous ways to save money. Most insurance companies offer car insurance discounts for students to help offset the premium increase you will likely experience after adding your 17-year-old driver.
- Good student discounts
- Reduced mileage or mileage tracking discounts
- Safe driving discounts.