When buying car insurance for teens, the price of the policy can be a considerable concern as drivers under 25 are often charged the highest car insurance premiums among all age groups. As insurance providers don’t offer exclusive, affordable car insurance for teens, getting a suitable policy can require considerable research.
One option is to look for discounts or policies with specific conditions that can lower the car insurance premium. An alternative option is for parents to add their teenager to their existing car insurance policy. You’ll need to check whether doing so requires you to pay more than one kind of car insurance excess, which is the amount you agree to pay towards any claimed compensation.
How much is car insurance for teens likely to cost?
The cost of a car insurance policy can vary based on several factors apart from your age. Even among young adult drivers, car insurance premiums for male drivers are higher than those for female drivers. Younger drivers under 25 years of age can easily find themselves paying a few hundred dollars more than the average car insurance cost for drivers over 26. Many families may not find this affordable, and may instead prefer that the teenage drivers get some driving experience in the family car before buying their car insurance policy.
However, as a teenager, if you do need to buy a car insurance policy, you might consider opting for a policy with only the most necessary coverage to keep the cost low. As the type of car can also make a difference to the premium, you may want to consider driving a cheaper, commonly bought car that won’t cost much to repair or replace. For such a vehicle, you may not need comprehensive car insurance, and you can buy a likely significantly cheaper third-party policy. You can also agree to a higher car insurance excess to bring down your premium but remember that, as a younger driver, your excess may already be high and increasing it may make it unaffordable.
You can also check if insurers may give you a discount, for instance, if you take defensive driving lessons or agree to drive only if there’s an older or experienced driver in the car with you. Buying a policy from the same insurer as others in your family might get you a discount too, as will buying the policy online. Once you have a few years of safe driving under your belt, you may become eligible for a no-claims discount, which rewards you for not making insurance claims in the past few years. Also, if you don’t plan to drive too often, you can go for a ‘pay as you drive’ policy which can cost less over the longer term.
Which policies are likely among the best car insurance plans for young adults?
Although you may not find insurance policies meant specifically for teens, you can compare car insurance quotes for teens to find a policy that works for you. However, you may need to know which type of policy is most suitable before comparing quotes. If you’re buying insurance for a shiny new car which costs a good amount of money, you may need to buy a comprehensive car insurance policy which also covers most natural incidents, theft, and vandalism. Again, if you drive a cheaper car, but live in a neighbourhood prone to bushfires, a third-party fire and theft insurance will cover the risk of fire damage to your car, and often costs less too.
What are my options if I can’t find affordable car insurance for young adults?
Most insurance providers do not offer specific car insurance plans for young adults, which means there’s a chance you may not find affordable car insurance. If you live with your parents, consider asking them to add you to their car insurance policy. However, they may need to check with their insurer about the costs involved in adding you. They may have to agree to pay a young driver excess in addition to the usual car insurance excess. Also, your parents will have to ensure you are listed on the car insurance certificate or risk paying an unlisted driver excess.