Car insurance for P-platers

Car insurance is designed to help protect you financially if you happen to be in an accident and/or if your car is damaged.

When considering what the best car insurance is for your circumstances, you might like to think about what it might cover and how much it costs. You might also be wondering, if you are a younger driver, if you’ll be covered by your parents’ car insurance.

When it comes to finding the best car insurance policy for you, many factors, including the car you drive, can impact your back pocket.

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, but it may work out cheaper than taking out your own car insurance policy.

Be aware that in the event of a claim, you’ll typically need to pay an additional excess if you are an under-25-year-old driver. If you are driving your own car, you may want to consider taking 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.

What does car insurance cover for P-platers?

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 legally required to register 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 from state to state.
• Third party property damage: covers you if you cause damage to someone’s property (i.e. their car)
• Third party fire and theft: covers property damage and your car if it’s damaged by fire or stolen by thieves
• Comprehensive: is the most wide ranging and most expensive form of cover. Comprehensive car insurance covers you if you damage another person’s car or property. It also provides coverage if your car is stolen or is damaged due to certain events such as fire, storm, flood and theft. To benefit from this coverage, P-plate drivers will typically need to comply with provisional driver restrictions.

Some car insurers may refuse to pay out your claim if the incident occurred while you were in breach of the restrictions that apply in your state or territory. For example, your insurer may not cover you if were:

• driving under the influence of alcohol
• using your mobile phone while driving
• 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.

Before buying insurance you should read all of your insurance policy’s terms and conditions carefully to make sure it meets your needs.

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 less experienced and younger than other 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 type of car you drive
• the level of cover you take out
• how far you drive your car each year
• where you live
• where you park your car

Most insurers will also add an age excess if you are under 25 years old. This means that you’ll need to pay more money 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: many providers offer premium discounts when you buy a new policy online. Some insurers also offer multi-policy discounts and discounts if you complete a safe driving course. Find out what premium discounts are currently on offer
• increasing your car insurance excess: policies with higher excesses will often have lower premiums
• driving safely: many insurers offer no claims bonuses which typically give you a discount for each year that you don’t make l claim up to a certain limit
• reviewing how often you pay: instalments can be more manageable, but if you pay for your insurance annually you may be offered a cheaper rate
• Choosing your extras carefully: windscreen damage protection is one example of a policy inclusion that’s often optional for a cost

You could also potentially save on your insurance by comparing policies to find one that suits your needs and budget. You can compare a range of car insurance policies on Canstar’s database.

Cover image source: Ben Gingell/Shutterstock.com