Insuring your car for the first time?
If you are planning on insuring your car for the first time, it is important to understand what car insurance is and to put all things into context. Before you even started researching about car insurance you’ve probably heard a story or two about the whole process that can be confusing and sometimes misleading. Here we’ve picked up two popular assumptions.
Car Insurance: Myth or fact
Being a male under the age of 25 means that you will have to pay higher car insurance costs.
The cost of your car insurance depends on how risky the insurance company thinks you are to insure. The NSW Roads and Traffic Authority reports that younger drivers are over represented in road crash statistics where people under 26 make up 15% of driver licences but are involved in 36% of road fatalities.
If you fall into this demographic, it does mean that you are riskier to insure and you are more likely to pay more.
Good drivers don’t need insurance
Insurance is about protecting you, your passengers, and your vehicle. If there is a collision involving your car then injuries, damages, and legal liability are likely to result. Some drivers may be lucky enough to never be involved in a collision however accidents do happen and things can go wrong.
Insurance gives you that added protection and peace of mind knowing that you won’t be stranded with nowhere to turn in the event of an accident. If you don’t want to insure your car it is wise to at least get Third Party Property Damage insurance to cover you for damages you make to other people’s property.
How to lower your Car Insurance Premium
As a young driver you may not be able to do much about your age and experience affecting your insurance costs but there are a number of other things you can do to help you save.
1) Keep a good driving record because safe drivers will save money
2) Choose a car that minimises your policy costs.
- Cheaper cars tend to be cheaper to insure because you are insured for the value of your vehicle
- Install safety features because these reduce the risk of theft. Safety features include immobilisers, Alarms, Micro dotting, and 24 hour tracking devices.
- Insurers also consider the general cost of repairs as a pricing factor, so that if parts of your car are rare or expensive to source you will be expected to pay more for cover.
- Performance enhanced and modified vehicles are generally more expensive to insure because of the increase risk of theft and speeding. Add this to the risk of insuring drivers under 25 and you will end up with a hefty premium, so it is a good idea not to have any of these vehicles.
- Any modifications you do make need to be reported to your insurer so that it will come under your policy otherwise your coverage and liability may be seriously affected.
Review online quote estimates from participating providers (though not all may be listed for every quote):
Budget Direct, Virgin Money, Ozicare, 1stforWomen, ibuyeco, Cashback, Retirease and AI Insurance.
Disclaimer
Nothing in this car insurance comparison service should be taken as constituting personal advice. It has been prepared without taking account of your objectives, financial situation or needs. Before you buy a car insurance policy you should consider whether it is right for you. Whilst policy features are listed here, it is only a summary and does not describe all policy details. Be sure to read the insurer's Financial Services Guide and Product Disclosure Statement before deciding to buy. Quotes are estimates of premiums of our participating providers. As with all insurance premiums, these are subject to underwriting and may change. See InfoChoice's Financial Service Guide. InfoChoice Ltd ABN 93 061 105 735 AFSL No. 349445