4 Things Young Drivers Must Know About Car Insurance Policies!

Young drivers in NSW and other parts of Australia can sometimes be more concerned about enjoying driving their rides than worrying about rules and regulations. That is why it is important to educate the young drivers at home about what is expected motoring behavior and by encouraging them to share their questions, doubts and concerns, so they are led onto a safe driving path conforming to the driving/road/traffic laws.

For example, young drivers need to know that apart from their CTP insurance, they may need supplemental car insurance NSW that covers damage caused by car accidents as well as a range of events like fire, theft, harsh weather, etc. The CTP insurance only provides for third-party injuries and fatality when the vehicle drivers are at fault.

Without the best car insurance, you will need to bear the financial burden of damage you cause to other vehicles and properties, ensuing legal liabilities, along with your own vehicle damage. You may have a lot to deal with after an accident that CTP will not cover. It is precisely why young drivers need to know some things straight before heading on the road.

Young drivers & additional car insurance

Young drivers belong to the high-risk category and are considered more likely to be involved in car crashes than senior or mature drivers. They are seen as inexperienced drivers due to reasons like driving at high speeds, not wearing seat belts, overconfidence, driving with risky passengers in the vehicle, being highly distracted, driving while intoxicated, etc.

The factors mentioned above and several others require young drivers to seriously consider having extra insurance cover to keep them financially guarded.

Young drivers driving parents’ cars

When parents have a car and an additional insurance policy, the young drivers at home may take the vehicle for granted. When driving their parents’ car they may not think they need their own insurance policy to be covered for an event.

While this is correct, what is necessary is the parents needing to contact their vehicle insurer to inform them another person is driving their car. The insurer may revise the premiums with this information in hand. You will most likely be listed as a driver in your parent’s policy, so your parents’ car stays covered when you drive it.

Even so, if your parents’ vehicle is involved in an accident while you were driving then your parents may need to pay applicable excesses (like a young drivers excess) on top of the standard excess to make a successful claim.

If you are not listed on their policy you may still be covered if the insurer has an ‘unlisted drivers excess’, but many insurers don’t pay out if you are not a listed driver in the policy when involved in a driving mishap.

Insurance premiums young drivers pay

The premiums young drivers need to pay vary from insurer to insurer. Usually your premium will lower when you reach the age of 25 years old. As with any age, the premium will also boil down to your driving experience and driving record as well as the car you drive and other lifestyle circumstances. If you have maintained a good driving history, then expect your premiums to be lower than if you had fines and demerit points against your name. Remember, several other factors affect your premiums and not just your driving track record.

Adding friends to Young Driver’s policy

This is possible by providing your insurer with your friend’s bio, driving experience, and claims history. Still, you need to know that adding another driver, especially a young driver, can significantly alter your premiums and excesses for covered events.

Having said that, the insurer with whom you want to buy car insurance in NSW or already have a policy with is the best person to guide you on what is covered and what is not. It is because every policy is different, and the benefits offered by each insurer are different. So to have the best car insurance, weigh up the car insurance plans online and buy/swap with just a few clicks.

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