How to choose the right insurance for new drivers

Making the right choice comes down to cost and finding the best option.

There are some people—perhaps violent types—who would suggest that the L sign that learner drivers are forced to show actually means "Madman." 

This is not even an assumption that they intended to drive badly or dangerously, but rather an admission that allowing a person with a dangerously inept, incompletely formed brain to take control of a potentially deadly car at speed is a form of insanity.

Indeed, the only thing that could be crazier is being a licensed driver in the passenger seat trying to pass on your wisdom. And probably paying outrageous insurance money for the privilege of letting them drive your favorite car.

When you imagine trying to get insurance for a novice driver, it might seem like a daunting task because the risk factors can be such that even insurance companies that make their living playing the odds can run a mile from touching them. . Fortunately, they have never faced a risk that they cannot make a dollar.

Even if you are over 25 but learning, inexperienced excess will apply because lack of experience just makes you more dangerous.

There is no doubt that the statistics of young drivers are alarming. A truly staggering 45 per cent of all young Australian deaths from injury are due to road traffic accidents. This means that driving, especially in the first few years, is the leading cause of death (and disability) for young people in this country. 

Even more revealing is that young drivers (i.e. aged 17 to 25) account for a quarter of all road deaths in Australia, but they make up only 10-15 percent of our licensed drivers.

So adding a learner driver insurance to your insurance looks like one of those things in life — like changing diapers or lending money to your kids — that you have to do as a parent, not one of the things you actually want to do. do. do.

The other option, of course, is to let your teen get their own insurance policy, which - ideally - will allow them to start accumulating their own no-claims bonus. 

Making the right choice comes down to cost and, of course, finding the best option. There are many comparison websites out there to help you find the best novice driver insurance.

Insurance for novice drivers in the car of parents

To say that as a young learner driver you are at increased risk is stating the obvious. 

And insurers base the costs they charge you on the likelihood of you having an accident, which means students will have to pay more.

This means that it is essential that you tell your insurance company if your child is going to put an L on your family car.

If your child is not included in your policy, the insurer may refuse to pay the claim if they are involved in an accident.

Driving your parents' car - if at all possible - while you're studying and getting insurance will usually cost a lot less.

Adding a learner driver to your insurance won't be a problem, of course, because insurers are generally happy to cover your learner to drive your car, and even happy to increase your insurance premiums and/or your deductible to cover it.

Just call your insurer, get the price, then go out and compare if you can get a cheaper deal elsewhere.

To make sure you're getting the best student driver car insurance, also check with your insurance company for the difference in cost between putting your child on an existing policy and getting them a separate policy. 

It will generally be cheaper to add them to your policy, but sometimes insurers looking to sign people up for life offer discounts for new customers who sign up for comprehensive coverage.

These discounts may only last for a year, but they can obviously help keep the upfront cost down.

Additional expenses

The biggest hit you are likely to take by adding an apprentice to your insurance is the extra department. 

The insurer knows that an accident is now more likely and covers itself for this eventuality. This is your way of taking the risk you are taking.

There are different kinds of luxuries you can count on, so be sure to check out the details. For drivers under the age of 21, there is often an overage (this can be up to $1650).

Some companies may also apply a separate learner driver allowance during the period they wear those flashy L's. Even if you're over 25 but you're studying, the inexperienced excess will apply because lack of experience just makes you more dangerous.

Of course, you can negotiate your excesses, but for this you will have to pay higher surcharges.

Keep in mind that auto insurance is a very competitive industry in Australia and it's worth looking into it.

How can you get the best deal?

It's important to remember that there are several factors that affect your premiums, from where you live to whether the car is in a garage or parked on the street and what kind of car it is.

It also takes into account how far you are going to drive, and if your child is only going to drive a limited number of miles, this can help keep costs down.

Your credit history is another important factor that is often overlooked.

The best way to reduce the amount you pay and your stress level, of course, is to make your teen a better driver, which means getting proper driving training and talking to them a lot about things like attitude. , safety and speeding.

A student who racks up speeding tickets or has stupid minor infractions will be harder and more expensive to insure.

What happens after they finally get a license?

When your teen finally switches to their P numbers - red and then green - be sure to let your insurance company know immediately because they will adjust the price of your policy accordingly.

Auto insurance for learning drivers with own car

If you are a young learner driver with your own car then this is good for you and you will be able to insure your car but it will certainly cost you extra.

All you can do is compare quotes online as they apply to your circumstances and be prepared to pay.

On the positive side, you will accumulate your no-claims bonus from a younger age and stage, as long as you don't have an accident.

To be honest, driving your parents' car - if at all possible - while you're studying and getting insurance will usually cost a lot less.

Temporary car insurance for novice drivers

But what if you want temporary car insurance, like a student, for a day, a week or a month?

Again, these things are possible, but obviously it will be more expensive, both because it's short term and because you're a learner and/or an inexperienced driver, which will drive up costs.

Did you add a learning driver to your car insurance and was it expensive? Tell us in the comments below.

CarsGuide does not operate under an Australian financial services license and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) for any of these recommendations. Any advice on this site is general in nature and does not take into account your goals, financial situation or needs. Please read them and the applicable Product Disclosure Statement before making a decision.