Car Insurance for Young Drivers: The Responsible Way

We all know the joy of that first time behind the wheel of your own car. Purchasing a car is a major investment, and with that excitement, also there is a responsibility: to drive safely, protect yourself, your passengers, fellow drivers, pedestrians and your asset as best you can. Car insurance for young drivers is a consideration you must prepare for, prior to hitting the road.

Car Insurance for young drivers is offered by numerous insurance companies. You will first need to determine your category of insurance. The three main are Comprehensive Insurance (full coverage for yourself and others), Third Party Property (coverage for damage other’s cars and property), or Third Party Property Plus Theft and Fire (third party plus coverage for fire damage or theft to your own car).

For inexperienced and young drivers, car insurance is an incredible expense. Inexperienced drivers are statistically more likely to be involved in accidents, so insurance companies risk is much greater. So don’t despair – if for a few years you are a safe driver and don’t have any ‘at fault’ claims, in the insurer’s eyes you’ll begin to become less of a risk and those high premiums will gradually be reduced as you accrue a ‘no claim bonus’.

In Australia, young drivers should be alert to the fact that it is necessary for all drivers to have Compulsory Third party insurance, a form of insurance that will protect you in the event personal injuries as a result of your driving are caused to other people. In NSW, It is mandatory to obtain the Green Slip when obtaining or renewing your car registration. This varies from state to state. In WA as an example, the coverage is controlled by the state government and it’s incorporated into vehicle registration.

It is a necessity to have Car insurance for young drivers. While CTP is the only level of compulsory insurance, to ensure financial security, third party property insurance is a must. It could save you the headaches of litigation that will probably arise as a result of damages in the event you are at fault in a collision. If your vehicle is old with little to no value, it is not cost effective to cover it comprehensively. However, if you’ve financed the purchase of your vehicle, used the vehicle as security, your contract will probably mandate that the vehicle must have comprehensive insurance.

And while car insurance for young drivers is, as a norm expensive, shop around and do not accept the first insurance quote you receive – for this could save you hundreds of dollars.