When choosing car insurance, your age plays a crucial role. Different criteria are applied based on age, and even those within the same age range can have different needs. If you’re looking for car insurance and you’re under 25, you need to consider these factors:
Since you’re a young driver, you most likely don’t have a lot of experience dealing with insurance companies. That’s why you’ve got to get the right type of car insurance. We’re not saying you need to go for the most expensive, but you should consider going for the right one. Here are the different types of car insurance today:
- Compulsory Third Party
This is the basic kind of insurance that covers damage to the third party’s vehicle, injury, death or loss of property. This is mandatory for all owners of a vehicle in Australia.
The liability insurance your car dealer offers does not include the cost to repair damage to your own car or any damage you might cause to other people’s cars or property. That’s why it’s important to consider adding optional insurance such as Third Party Property Damage or Comprehensive Car Insurance.
CT Registration is often bundled into the cost of your CTP , and doesn’t need to be arranged separately.
- Third Party Property Damage
Third Party Property Damage Insurance covers you in the event that you cause other people’s vehicles and property to be damaged.
Now, let's look at the factors you need to consider when choosing car insurance:
- Cost
There are a lot of car insurance companies in Australia that’s why you’ll most likely find different car insurance quotes for the same model of car. It’s not about the brand. What’s more important is the cost, and if you’re paying for something you don’t need, you’re wasting money.
- Experience
When purchasing a policy for a young driver, it makes sense to purchase a policy with a lower level of coverage, right? Not necessarily. If you’re less experienced, the risk is greater that you might cause damage to your car or another’s.
- Vehicle Usage
If you’re not going to be driving far, you can settle for road risk insurance. But suppose you’re going to cover long distances, such as driving between Sydney and Melbourne. In that case, you might consider accepting the slightly higher rate for reliable insurance coverage.
Aside from the factors listed above, we'll discuss below the factors that may affect your premiums:
- Driving History
Your driving history has a direct impact on your car insurance premium. Insurance companies use information from the past five years for under 25 drivers where applicable. Collisions, speeding tickets, and traffic violations increase the risk of insuring a young driver. Minor traffic violations such as speeding and rolling through stop signs are not as risky as other violations such as DUI or reckless driving.
- Type of Car
The type of car you drive also plays a role in the premium you pay. The older the car model is, the higher the risk for the insurance company. If you have a sports car, you’re more likely to have a higher premium than if you had an SUV.
- Claims History
Your claims history also affects your premium. If you had a claim for an accident in the past, this could also affect the premium rates.
When buying a policy for a young driver, you should remember that you’re not just paying for peace of mind; you’re also paying for financial protection.
Ensura has car insurance brokers in Sydney that can help you choose the right insurance for your age. Get in touch with us!
Disclaimer: As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy document. The information contained on this webpage is general only and should not be relied upon as advice. The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific insurance product. It is only intended to provide education about the financial and insurance industry. The views reflected in the commentary are subject to change at any time without notice.
