First Time Insurance For A First Time Driver

Are you a parent looking at insurance for your child as a first time driver? We have all the unanswered questions about high risk profiles…

Getting behind the wheel of a car for the first time can be both, exciting and daunting. It can also be quite a pricey experience if you find yourself in an accident.

First time drivers are insurance companies best clients and worst nightmares. The less experience you have on the roads, the higher your premium will be.

We take a look at the ins and outs of first time driver insurance as well as provide parents with some insurance advice.

New Drivers Come At A Price

If you are between the ages of 18 – 25 years old and have just started driving, you are considered high risk on the road. Insurance companies base this assumption on your lack of driving experience, high driving speeds and risky driving behaviour.

Some parents don’t insure their child’s vehicle if they are a new driver because their premiums are sometimes exorbitant.

Although this might be the case, insurance is super important because it protects you from having to pay ridiculous amounts as a result of an accident.

The reality is that until you are older than 25, you will not be able to escape the monthly premiums attached to being a younger driver.

Parents And First Time Drivers

Many parents make the same mistake when it comes to who the main driver of the vehicle is. Parents believe that by putting themselves as the main driver, they will save themselves some money.

Also read: Can SA Expect Driverless Cars In The Near Future? 

According to Discovery Insure’s Darryl Grater, they will not be saving any money, but rather incurring more problems.

“Parents sometimes misrepresent the regular driver to save the premium.  Claims end up being rejected for material misrepresentation on the policy,” explains Grater.

Grater also explains that parents should look for options for their kids that will benefit their driving. The better you drive, the more benefits you receive.

“Look for innovative cover which incentivizes the child for driving well and offers solutions for late night transport via arrangements with providers, i.e. Uber benefit from Discovery Insure.”

Lower Your Premium, Up Your Ranking

Here are a few simple ways that could save you money on your car insurance if you are a new driver:

  • Take out Third Party Insurance – even if this is the only insurance you take out, at least this will insure that if you damage the other car in an accident, your insurance will pay for the damages. Your own vehicle damage will however, fall on your shoulders.
  • Higher excess equals lower premium – you should try and opt for a higher excess if you can drive below the speed limit. By accepting a higher excess if you are in an accident, the monthly premiums will be lower.
  • Defensive driving course– Take an advance driving course. This will provide insurance companies with a piece of mind knowing that you are able to handle a vehicle. This will also possibly lower your premiums.
  • Use your own name – although some young drivers may not be able to afford it, putting a vehicle policy in your own name will be great for your future driving history. The less you claim over the years, the lower your premiums.
  • Smaller engine equals less power – parents make the mistake of buying their children a very powerful car as their first vehicle. This increases the risk profile because the faster you drive, the more chance you have of having an accident.

The above content was supplied by CompareGuru.

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