Car Insurance Tips For First Time Drivers

Congratulations, you just passed your test and you’re ready to own a car!

As soon as you’ve bought a vehicle you need to insure it. If you’re a new driver and you’re young, chances are, your premium will be expensive. Why? Insurers typically associate young drivers with risk. In fact, according to the Australian Bureau of Statistics, drivers aged 25 and under are twice as likely to be involved in a car accident. But before you start worrying, there are some things you can do to cut the cost of your car insurance policy even if you're a first-timer.

Here are some tips to help you understand car insurance better and keep premiums low.

Consider what type of car insurance policy you need

Not all car insurance policies are the same! It is important to choose one that fits your needs and budget without sacrificing great coverage. Generally, there are three types of car insurance policies: comprehensive cover, third party property damage, and compulsory third party.

  • Comprehensive car insurance – This is the most popular and expensive type of insurance, because it gives you the most extensive coverage. This type of car insurance policy covers your vehicle, other vehicles, and properties that get damaged in an accident. It also covers vehicle loss, legal costs, and emergency repairs.
  • Compulsory Third Party (CTP) - A CTP insurance is compulsory for all Australian drivers and is needed to register your car. It covers personal injury and injuries caused to someone else in the event of an accident. This is included when you register your vehicle.
  • Third party property damage - A low cost policy. Third party property damage car insurance covers the cost of damage caused by your car to other cars or property. You can also get Third Party + Fire and Theft which also covers if your car is stolen or damaged by fire.

PD offers comprehensive car insurance and third party property damage.

Choose an economical car

While you dream of driving a top-of-the-line sports car, it's best to save it for later. In fact, owning an expensive car means more expensive premiums since your car is more likely to get stolen or be involved in a car accident.

Install safety features

Car modifications are usually a no-no for car insurers but installing safety modifications might qualify you for car insurance discounts. Features such as anti-lock brakes, airbags, and winter tyres are taken into consideration by insurers and could help reduce your premium.

Do your research and compare insurance companies

Buying a car insurance policy for the first time can be daunting, but don't just pick the first option you see. It's a good idea to look up your potential insurers online and ask for quotes. You can also ask family relatives and friends for recommendations or read reviews online to see what people are saying about the company. Ultimately, you should pick an insurer that covers all your needs and one you feel comfortable and safe with.

Understand the policy

Buying a car insurance is one of the most important purchases you'll make so it makes sense to know what you're getting into. Make sure you read and understand the terms and conditions, including what your insurance covers and what it doesn't. Don't be afraid to ask questions to your insurer either. The more questions you ask, the better you can gauge if a car insurance policy is right for you.

Drive safely

Perhaps the best thing you can do as a driver is to commit yourself to driving safely and keeping a clean record. Focus on the road, avoid texting, don't drink and drive, follow speed limits, don’t incur demerit points—you know the drill. You can also enroll in a driving safety class to learn how to be a better driver… it could even reduce your premium!

Consider getting a multi car policy

If you are driving two or more cars, a multi car insurance is a good option. A multi car insurance covers multiple cars under one policy. You'll get all the benefits of multiple policies while only having to maintain one. In addition, some insurers, like PD Insurance, give discounts for insuring two or more cars.

Car insurance gives you the protection you need on the road. It gives you the assurance that you'll have something to fall back on if things go wrong. If you are looking for a car insurance, get a quick quote here.

More Related Blog Posts