You’ve probably been driving your parent’s car as a high school student and as you learn to drive. As a gift for finishing high school, your parents are getting you a car, or you’ve saved to purchase your own.
Now you have to deal with things like car registration and insurance. Registering your vehicle may not be a big deal, but finding a suitable insurance policy can be an ordeal. As a 17 or 18-year-old, you may have a couple of years of driving experience, but this won’t be enough experience for an insurer. All the insurer is going to see is that you’re under 25 years of age.
This puts you in the category of Aussie drivers who are seen as at a higher risk of causing or being in more road accidents. Insurers, therefore, will ask you to pay a higher car insurance premium than drivers who are older and have more experience.
You may want to go for the best student car insurance deal. However, you’re more likely to go looking for a policy that is cheaper and offers just enough cover for you to feel comfortable.
Which car insurance is best for students?
As a young driver, irrespective of whether you’re a student or not, your challenge will be finding the right car insurance policy at the right price. The average car insurance premium for an under-25 driver in Australia can be substantially more than the average premium paid by Aussie drivers as a whole.
When it comes to car insurance policies for university students, they aren’t treated any differently to non-students. Insurers don’t offer specific discounts that students may expect.
If your parents decide to splurge on a fancy or flashy or expensive car for you, you might want to ask them to buy a car insurance policy as well. Fancier or more expensive cars may require specialised repairs, which can be costly.
If you’re lucky enough to get a car that would be considered fancy, you should consider buying comprehensive car insurance. Comprehensive car insurance covers most types of damage to your car, in addition to protecting your liability for injuries to others or damage to their cars. This type of insurance will be best suited if you have a more expensive car as it will help cover any possible, and costly, repairs. However, it’s also the most expensive type of policy.
Let’s say your parents bought you a regular midrange car which won’t cost a fortune to repair if damaged. You can opt for a comprehensive car insurance policy if you want the full coverage and peace of mind it offers and can afford the costs. But even a third-party policy which covers your liability for any accident-related injuries, car damage or property damage might work for you. You can also get a third-party fire and theft policy if you live in an area that is at a higher risk for these types of incidents. Either of these policies will cost a lot less than comprehensive car insurance.
How do I find good car insurance for students?
When looking for affordable car insurance for students or anyone below the age of 25, you should research all the factors that impact the insurance premium. The two factors most talked about when it comes to car insurance premiums are your age and the type of car you drive, but there are also other factors. For instance, you’ll have to agree to an excess, which is the amount you’ll pay out of pocket if you make a claim. This is a cost you should consider as you’ll have to pay it even if you opt for an insurance policy that has a cheaper premium.
Some insurers may ask you to pay other excesses over and above the standard car insurance excess. These can include young driver excess, inexperienced driver excess, and learner driver excess. When looking at the different car insurance policies available, you should remember that if you agree to pay a higher excess, it can bring down your premium costs. But before you increase your excess to save money on your premium, you need to make sure you can access the cost of the excess if you ever need to pay it.
To understand how your age, gender, location, and the make of your car can impact the cost of your policy, try comparing car insurance quotes for students online. This can help you check which parts of the coverage are optional and you can then remove these from the policy so you can lower your premium. You can also see if any insurer is offering discounts on their premiums and whether you qualify for those discounts. Some insurance providers may reduce the cost of your car insurance policy if you agree to certain terms like where you park the car or who rides in the car with you.
I can’t find cheap car insurance for students. What do I do?
If you’re struggling to find a car insurance policy that suits your budget, it doesn’t need to be the end of the world, or even of your driving. Multiple other types of insurance are available that may work for drivers who have a limited budget.
You could consider checking if a ‘pay as you drive’ policy, which requires you to pay a premium based on the distance you drive, is within your budget. This type of policy will likely allow you to have a comprehensive car insurance policy for cheaper than usual as long as you don’t drive too much.
Another option you can explore is buying telematics or black box car insurance. This is a policy that uses technology added to your car to track your driving ability which you give the insurer access to. This then allows the insurer to more accurately gauge your ability and therefore offer a premium that matches this. It may reward you for driving safely but could also be detrimental if you drive in ways the insurer deems unsafe.
The other option is to just be added to your parent’s policy and hold off on driving your own car for now. This will help you gain more experience driving, which can be useful in getting your full license as well as in the future when you apply for car insurance. Your parents may find the cost of adding you to their policy less expensive than buying a whole new car insurance policy for you.