An Insurance Guide for New Drivers in Australia

An Insurance Guide for New Drivers in Australia

May 10, 2022 Views: 255
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Car Insurance For New Drivers In Australia

Like car insurance everywhere else, age is a huge factor in the cost of coverage in Australia. 25 is the magic number when it comes down to it since that is the age when car insurance rates start to fall in line with the average. Young drivers tend to be the most at risk for an accident with their near lack of experience, so insurance providers are wary of them. Despite this, there are ways that a young or new driver in Australia can save as a newcomer to car insurance. 


Car Insurance Required For New Drivers 

Right off the bat, there is mandatory car insurance for not just new drivers but all drivers in Australia. This comes in the form of compulsory third-party (CTP) coverage. This is essentially liability insurance wherein injuries to another driver and damage to another car occur in an at-fault accident. Treatment, repairs, and even income loss as a result of the injuries are all covered. Again, this is required for every driver in Australia. Registering a car isn’t even possible with car insurance.


Voluntary Car Insurance For New Drivers   

On the other side of the coin, there are broader car insurance options available of your choosing. Comprehensive auto insurance is more expensive but offers far more coverage than the standard CTP. This also covers damage to your own car and injuries to yourself in an accident that you caused –adding to the third-party coverage. Other more in-depth car insurance includes fire and theft coverage from a third party. This covers damages that you weren’t present for, like your parked car being stolen or damaged by a fire. 


Cheap Car Insurance For New Drivers

Some divers may consider not getting comprehensive car insurance coverage because of its escalated cost, especially for a new driver with not much of a record. A method that some people may use to save on broader car insurance is by buying third-party property damage along with fire and theft coverage. The overall cost may be much less than comprehensive coverage and may offer some of the same protections like damage to your own car. Of course, several young drivers may also remain on their parents’ policy until they turn 25 since it is often the parents who own the car and not the child. While adding a child to a policy has a price, it’s nowhere near as high as getting a new policy altogether. 


Reducing Car Insurance Premiums For New Drivers 

Being new to car insurance in general, there isn’t much a new driver can personally do for discounts. But there are some ways they can lessen how much they pay for coverage:

  • Purchasing a cheap but safe car
  • Installing anti-theft measures like a tracker
  • Completing a driving safety course 
  • Not investing in frivolous features 
  • Pay car insurance in installments rather than at once


Things New Drivers Should Keep in Mind

The best thing that a new driver can do is be the safest driver they can be out there. Car insurance companies take notice of an accident and claim-free policyholders and reward them handsomely with reductions in their rates. Continue building your driving record for the best results.      

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Insurance Navy

Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Insurance Navy.

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