What car insurance should a P-plater get?
Car insurance helps to protect you financially if you have a road accident or your car is damaged. When looking for the best car insurance for you as a p-plater or for your child, the two points worth weighing up are the type of cover and the cost. As far as optional car insurance is concerned, a p-plater can take out their own policy or may be added onto their parent or guardian’s policy.
Are you covered under your parents’ car insurance policy?
If you’re driving your parents’ car, you may be able to be added to their policy as an additional driver. This will probably make their policy more expensive, but it may work out cheaper than taking out your own car insurance policy.
You may still be covered by your parents’ policy, even if you aren’t listed on it. However, if you make a claim, you may have to pay an unlisted driver excess. You could also be charged an extra excess, since you may be under 25 years old or an inexperienced driver.
If you’re driving your own car, you may want your own comprehensive car insurance policy. This will cover you if you accidentally damage your car or damage other people’s vehicles or property.
What does car insurance for P-platers cover?
There are different types of insurance to consider based on your budget and needs, including:
- Third Party Property Damage: covers you if you cause damage to someone else’s property, like their car or home. It’s generally the most inexpensive form of optional car insurance.
- Third Party Fire and Theft: covers you for the above property damage, and if your own car is damaged by fire or stolen.
- Comprehensive: covers you for the same things as Third Party Fire and Theft, but also covers damage to your car from an accident, regardless of who was at fault. It can also provide coverage if your car is damaged due to insured events, like fire, storm and hail, flood, and theft. Comprehensive coverage is generally the most expensive form of optional car insurance.
- Compulsory Third Party (CTP): protects you financially if you injure or fatally injure someone in an accident. It’s a legal requirement of car registration and is usually included in the cost in most states and territories (except New South Wales). CTP insurance is also known as Green Slip insurance in NSW and Motor Accident Injuries (MAI) insurance in the ACT
In order for optional coverage to be effective, P-plate drivers need to comply with their provisional licence restrictions. It’s also worth noting that if you’ve taken out a car loan, your lender may require you to have a certain level of car insurance (often comprehensive).
What does car insurance not cover for P-platers?
Some insurers may refuse to pay out your claim in certain circumstances, called ‘exclusions’. Some common situations in which you won’t be able to claim on car insurance are:
- If you’re found to have broken road rules, such as driving under the influence of alcohol or drugs, using your mobile phone while driving, and overloading your vehicle with passengers or cargo
- If you were to drive a class of vehicle not specified on your licence, like a commercial truck
- If your car is damaged due to general wear and tear or a mechanical breakdown
- After market modifications to your car may not be covered (unless otherwise agreed to by your insurer).
- If you were in breach of a peer passenger restriction. For example, in Queensland, red P-platers (P1) under the age of 25 driving between 11pm and 5am can only carry one passenger under the age of 21 who is not an immediate family member
You should read all relevant documentation before taking out a policy, such as the Product Disclosure Statement (PDS) and Target Market Determination (TMD), to make sure the policy meets your needs.
Can I insure my car under my parents’ name?
If you’re the main driver of your car, it’s not advisable to register the insurance under anyone else’s name. Being untruthful with your insurer can have serious consequences, like voiding your policy when you need to make a claim. If this happens, you could face significant costs and even legal action if you damage someone else’s vehicle.
Does car insurance cost more for P-platers?
Car insurance generally costs more for P-platers than it does for other drivers. This is because P-platers are generally younger and less experienced than other drivers, and therefore seen as a bigger risk to insurers.
When determining the cost of your car insurance, insurers will also look at other factors, such as:
- Your age and gender
- Your claims history
- The make and model of your car
- The level of cover you take out
- How far you drive your car each year and at what times
- Where you live
- Where you park your car (during the day and at night)
- If your car has undergone any modifications.
How can P-platers get cheaper car insurance?
If you decide to take out your own policy and are looking for ways to save, think about:
- Keeping your car in a secure location: Like a locked garage, rather than on the street overnight.
- Looking for discounts: Many providers offer deals and discounts when you get a quote and buy a new policy online. Some also offer multi-policy discounts, or discounts based on how far you drive in a year—often referred to as low kilometre or pay as you drive policies.
- Increasing your excess amount: A higher excess often means lower premiums. This means paying more out-of-pocket when it comes time to make a claim, though.
- Driving safely: Many insurers offer no claims or safe driver discounts. These discounts typically grow each year that you don’t make a claim (up to a certain limit).
- Reviewing how often you pay: Monthly instalments can be more manageable, but if you pay your insurance premium annually, you may be offered a discount. That being said, there are some providers that allow you to pay-by-the-month at no extra cost.
- Choosing your optional extras carefully: Windscreen damage protection and roadside assistance are often optional extras, available at an additional cost.
Where can you compare car insurance for P-platers?
You can also potentially save on your car insurance by comparing policies to find one that suits your needs and budget. You can compare a range of comprehensive car insurance policies using Canstar’s comparison tables.
Taking out the cheapest car insurance for P-platers you can find might save you money upfront, but it’s important to think about more than just the premium. Cheaper policies often come with higher excesses, less coverage, or fewer benefits, such as coverage for uninsured drivers or roadside assistance.
It’s also worth checking if the policy covers common risks P-platers face, like at-fault accidents. Balancing price with enough protection, features, and a reasonable excess is key to finding the right policy for your needs.
