Car insurance for P-platers and young drivers
There’s no better feeling than when you’ve just got your probationary licence. It’s finally time to slap your P-plates on the back of your car and enjoy some independence on the road. But just as you’re getting the hang of driving, it’s also worth thinking about your car insurance.
This article will explore the different types of car insurance and explain how it affects P-plate drivers.
Check to see whether you’re already covered
If you’re planning to drive a relative or guardian’s car as a P-plater, some insurers might allow for additional drivers on the policy, though this may impact the excess you have to pay in the event of a claim. This could apply if you’re under a certain age or if the insurer defines you as an inexperienced driver. To find out, it’s worth having a chat with your relative or guardian about their insurance policy cover.
Explore your cover options
There are different types of car insurance options. So it’s worth considering what’s going to suit your needs.
There's nothing more exciting than passing your tests and finally being able to drive on your own.
No more panicked yelps from supervisors, awkward driving lessons, and missed logbook entries, you're independent now.
However, that can be pretty daunting, so we've got some tips and tricks that might make your transition to solo driving a little easier.
It can be hard to remember a list of tips when you're busy trying to navigate traffic, pedestrians, and more, that's why we made it easier to keep in with the idea of being SAFE.
Being SAFE seems like an easy objective, but when you break it down, it encompasses all of the key parts to driving, slow down, allow space, follow the conditions, and keep your eyes on the road.
Now, just because you're keeping SAFE doesn't mean there aren't a few other tips we can point out.
One is to make sure you always know and check your blind spots.
More often than not, p-platers will begin driving in a new car once they have their licence, this means the blind spots, driving style, and the way the car drives will all change.
Take the time to make sure you know the car, you know the blind spots, and you're aware of the car's size.
With your newfound licence also comes new restrictions you'll need to understand.
If you're a P-plater who's about to hit the road, you'll have passenger restrictions, dependent on what state you're in, and time restriction for these passengers too.
Make sure you read up on what you can or can't do as a P-plater to make sure you keep your new licence.
Another thing that can help you keep your licence and maintain your ability to drive safely is doing some defensive driving courses.
Here at AAMI, we encourage drivers who are on their P-plates, or even their full licences, to learn about being a safer driver in our one-day AAMI Skilled Drivers course.
Whether you're simply keen to improve your defensive driving skills or you're interested in learning new safe tools to driving, doing a defensive driver course of any type is always beneficial, you could even get a discount on your car insurance.
So while it's exciting to get you new independence, it's also really important to take the time to be safe, know your restrictions and your vehicle, and learn how to drive safely, no matter what kind of driving you're doing.
Compulsory Third Party (CTP) Insurance
In Australia, CTP Insurance is required by law. CTP provides cover for compensation claims from people injured in a motor vehicle accident. Although it does not cover damage to your vehicle, other vehicles or property.
In Victoria, Western Australia, Tasmania and the Northern Territory, CTP Insurance is included in the price of your vehicle registration. In Queensland and South Australia you can choose a CTP insurer when you register your car or renew your registration.
In the ACT, Motor Injury Accident (MAI) Insurance covers all people injured in a motor accident, regardless of fault, for up to 5 years. You can choose a MAI insurer when you register your car or renew your registration.
In New South Wales – where CTP is better known as ‘Green Slip’ —, you must buy CTP insurance before you can register your car.
Third Party Car Insurance
Third Party Car Insurance covers the costs of repairing damage to another car involved in an accident, or someone’s property in an incident where the driver of your car was at fault.
It’s important to note that this type of insurance usually has a cap on how much can be paid out and varies with each policy.
If you’re at fault you will have to pay an excess that you agreed to when buying your car insurance. Say if you’re involved in a minor prang that causes $2,000 worth of damage to the other car, your insurance could cover this damage, but you’ll have to pay your excess.
Comprehensive Car Insurance
With Comprehensive Car Insurance, you might be covered regardless of who’s at fault in an accident. This type of insurance is on the pricier end of the insurance scale, but covers you in a variety of situations, like:
- Accidental loss or damage cover from an accident.
- Your legal liability for damage to other people’s property (which is also included in Third Party Insurance).
- Any transport, towing and storage costs after an accident.
When buying Comprehensive Car Insurance
When you’re shopping for Comprehensive Car Insurance, you’ll want to keep a few things in mind. For starters, consider the amount of excess (the amount you have to pay upfront) you’ll be willing to pay if you have to make a claim.
Most insurers apply an age excess if you’re under the age of 25. This is because you’re likely to have less experience driving on the road and therefore you’re more at risk of having an accident.
For that reason, it might be worth picking a policy that allows you to adjust your excess to help lower your premium (the amount you pay monthly or yearly). AAMI Flexi-Premiums excess allows you to reduce your premium and could be a good idea if you’re a P-plate driver that wants to save on the cost of your car insurance.
It’s also important to think about whether your car is insured for market value or for an agreed value.
You can either choose to insure your vehicle for its market value (if we agree) or the ‘amount covered’ which allows you to set the amount you want your car to be insured for. Say if your car is 5 years old, it could be insured for an ‘amount covered’ of $14,000. This figure is the maximum amount paid for loss or damage to your car caused by an insured incident.
Know when you’re not covered
As a P-plater, you have to abide by specific rules until you receive your full licence. These rules are not only important to follow for your safety, but also because, if you have an accident while breaking one, your insurer may refuse to pay your claim. These rules include:
- driving under the influence of alcohol
- misleading your insurer with the type of car you drive
- using your mobile phone, including hands-free
- carrying passengers under 21 during restricted times (each state may have varied laws, so make sure you check), and
- supervising a learner driver.
If you’re as excited about driving as we are about insurance, you’ll be able to find a policy that suits your needs. Explore cover you when you need it the most, and get an AAMI Car Insurance quote. You can contact AAMI when convenient or simply ask us a question on Messenger. Still need time to explore your options? Browse our car insurance online today!
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AAMI Car Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.