Car insurance for P-platers

Car insurance is designed to help protect you financially if you have a road accident and/or if your car is damaged. When considering the best car insurance for your circumstances, it’s worth weighing up the type of cover you need and how much it might cost.

When it comes to finding P-plater’s car insurance though, many factors, including the car you drive, can impact the price you pay. If you’re a younger driver, you may also be wondering if you can be covered by your parents’ car insurance.

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 car insurance policy as an additional driver. This will typically make the policy more expensive for them, 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 you may have to pay an unlisted driver excess if you need to make a claim. You could also be charged other additional excess in the event of a claim, such as under 25-year-old driver or inexperienced driver excess.

If you’re driving your own car, you may want to take out your own comprehensive car insurance policy. This will generally cover you for damage to your car, as well as damage to other people’s vehicles and property.

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Can I insure my car under my parents’ name?

If you’re the main driver of your car, then it’s not advisable to register the insurance under anyone else’s name. Being untruthful with your insurance provider can have serious consequences, and can void your policy in the event that you need to make a claim. If this happens you could potentially incur significant costs and find yourself facing legal liability if you damage someone else’s vehicle.

What does car insurance for P-platers cover?

There are different types of insurance to consider based on your budget and needs, including:

• Compulsory Third Party (CTP): protects you if you injure or fatally injure someone in an accident. It’s a legal requirement when registering your car and it’s an included cost of vehicle registration in most states and territories (except New South Wales). The rules of CTP insurance can vary between states and territories. CTP insurance is also known as Green Slip insurance in NSW and Motor Accident Injuries (MAI) insurance in the ACT.

• Third Party Property Damage: covers you if you cause damage to someone else’s property (i.e. their car). It’s generally the most inexpensive form of optional car insurance.

• Third Party Fire and Theft: covers the above property damage, as well as your own car if it’s damaged by fire or stolen by thieves.

• Comprehensive: is the most wide ranging and often expensive form of optional car insurance. Comprehensive car insurance covers damage to your car caused by an accident, regardless of who was at fault. It also covers damage to another person’s car or property in accidents where you were at fault. It also provides coverage if your car is stolen or is damaged due to certain events such as fire, storm and hail, flood and theft. To benefit from this coverage, P-plate drivers will typically need to comply with their provisional driver restrictions.

It’s also worth noting that if you’ve taken out a car loan in order to purchase your vehicle, your lender may require you to take out a certain level of car insurance (generally comprehensive cover) as part of your finance agreement.

What does car insurance for P-platers not cover?

Some insurance providers may refuse to pay out your claim if the insured event occurred while you were in breach of the provisional driver restrictions that apply in your state or territory. Some other common car insurance exclusions that your insurer may not cover are:

• Breaking road rules, such as driving under the influence of alcohol/drugs, using your mobile phone while driving and overloading your vehicle

• Driving a class of vehicle not specified on your licence (i.e. a commercial truck)

• Being in breach of the 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

• General wear and tear, as well as mechanical breakdowns

• Coverage for after market modifications to your car (unless otherwise agreed to by you and your insurer).

Before taking out a P-plater’s car insurance policy you should read all relevant documentation, such as the Product Disclosure Statement (PDS) and Target Market Determination (TMD), carefully to make sure the policy meets your needs.

Does car insurance for P-platers cost more?

Car insurance generally costs more for P-platers than it does for other drivers. This is because P-platers are generally less experienced and younger than other types of drivers, and are typically 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 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

• Where you live

• Where you park your car (during the day and at night)

• If your car has undergone any modifications.

Most insurers will also add an age excess if you’re under 25 years old. This means that you’ll need to pay a larger excess if you make a claim.

How can P-platers get cheaper car insurance?

If you decide to take out your own car insurance policy, and are looking for ways to cut down costs, you could consider:

• Keeping your car in a secure location, rather than on the street.

• Looking for discounts, as many providers offer deals and discounts when you quote and buy a new policy online. Some insurers also offer multi-policy discounts and discounts based on how far you drive in a year—often referred to as pay as you drive cover.

• Increasing your car insurance excess, as policies with higher excesses will often have lower premiums. It’s important to note that doing this would mean paying a higher out-of-pocket excess when it comes time to make a claim.

• Driving safely, as many insurers offer no claims discounts/bonuses. These discounts typically increase for 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 for your insurance annually you may be offered a cheaper rate. That being said, there are some car insurance providers that allow you to pay-by-the-month at no extra cost.

• Choosing your optional extras carefully. Windscreen damage protection is one example of a policy inclusion that’s often an optional extra available at an additional cost.

Where can you compare car insurance for P-platers?

You could 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 car insurance policies using Canstar’s comparison tables.

While taking out the cheapest car insurance for P-platers you can find might save you money upfront, it’s important to consider more than just the premiums you pay. Cheaper policies often come with higher excess payments, lower coverage limits, or fewer benefits such as coverage for uninsured drivers or roadside assistance.

It’s also worth checking if the policy covers common risks that P-platers may face, like at-fault accidents. Balancing price with adequate protection and a reasonable excess, while comparing features carefully, is often the key to securing the right car insurance for your needs.

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