How much does car insurance cost for a new driver? It’s an important question when you’re preparing to get behind the wheel the first time – whether in your own or someone else’s car. Insurance premiums are tailored to each policyholder’s needs and situation, influenced by several factors (including who else drives their car).
Where to begin if you’re taking out car insurance for the first time for your own car? Whether you’re doing so at a young age or you’re an older first time driver the answer is the same…
By knowing what you want, which is usually: 1. satisfactory cover, 2. affordable pricing and 3. good service. Then, it’s about assessing what you can do to secure and maintain a low premium.
We’ve compiled plenty of relevant info so you don’t need to, to help you get the best price for your car insurance as a new driver.
What is the best car insurance for new drivers?
Given that insurance speak can be such a quagmire to understand for even the most seasoned of drivers, how do you find the right insurance provider? Simple, your insurance provider should have easy to understand information on their website and clear and simple policy documents.
It should be clear what their policy inclusions are, what their exclusions are, what add-ons are available (to extend your cover) and what T&Cs are involved with signing up and then at claim time.
Also, they should be willing to explain any nitty gritty elements of the policy to you if there’s anything you don’t understand. And considering an insurance policy is about protecting your wallet and your safety, there’s bound to be one or two things you want explained.
Plus, personal contact is a great opportunity to get to know an insurer and build trust.
But wait, there’s more.
How to get cheap car insurance as a first time driver
Statistically speaking, younger drivers are more at risk of having road accidents, which usually means higher premiums – especially in your early 20s. There are still simple and effective ways to try to bring your cost of insurance down and they begin with you.
Good news, right? Here are eight tips to make it easy:
1. Insurance quotes for first time drivers
When you’re buying a new top, you’re likely to try on one or two sizes to make sure they fit. Likewise, with insurance providers, it’s good to research. Try reading through a few of their websites and browsing their policy disclosure statements (PDS). Then you can compare how the offers differ.
You can begin right here with PD Insurance by reading our PDS. Let us know if there’s anything you don’t understand or if you have other questions – we’re happy to help.
2. Best 1st cars for new drivers
What car you drive affects the price of your premium, so it’s a good idea to opt for a car with a great safety record that’s economical to buy and maintain. There are new cars on the market all the time, and a lot of the older ones are really safe and easy to repair too.
Again, do your research, including checking out motoring expert and driver reviews before you commit.
Here’s the carsguide top 10 best first cars for new drivers.
3. Exclusive driver discounts for new drivers
Being the only driver of your car can help keep your premium down because other drivers’ risk factors don’t factor into your premium equation. So, to a certain extent, your situation is predictable for your insurance provider. It means your car won’t be subject to wear and tear from more than one driving style.
With PD Insurance we reward this be offering an ‘exclusive driver discount’.
You can read up on the financial perks of being the only driver of your car here.
4. Drive safely to improve car insurance premiums
Driving well not only helps keep you safe but also goes a long way to securing you a good insurance track record.
Getting your car dinged and scraped or you ending up in hospital is the last thing you want. It won’t just put a dent in your confidence and your bank account, and potentially your body; being fined for bad driving and/or making a claim to get your car fixed will increase your insurance premium. Keeping a clean driving record helps keep your premiums down.
If you’re with PD Insurance and you build up a good track record, after a time you’ll even qualify for a claims free discount on your premium. #Goals
5. Honesty is the best policy (for your policy)
Seriously. Always tell your insurance provider the whole truth about yourself with regards to your policy, and that includes not withholding the truth too. Otherwise, you may discover you’ve paid up your premium month-by-month but can’t access cover when you claim.
Remember that an insurance policy is an agreement – a relationship that’s built on trust. You need to trust your provider and they need to be able to trust you too. The car insurance cost for a new driver is only accurate when you’ve left nothing on the table (or hiding under it).
Read up on why you could be denied car insurance cover if you’re not honest in your policy or claims process.
6. Milestones affect car insurance cost for new drivers
If you move to a new house one month after you buy your insurance policy, tell your insurance provider. Even if your policy only renews a year later, it’s completely normal to make updates to your policy anytime. As and when they happen. They’re called insurance endorsements and they might even save you money.
Any lifestyle change is a type of milestone that might affect your insurance cover if it’s not updated. For instance, moving to a new house affects where you drive and where you park. And if the details of your policy are out of date at the time of claiming, your claim might not be valid.
Imagine you find yourself in a new relationship then your partner drives your car and has a crash but they’re not listed on your policy. You can see the problem, right? To find out more, read about an unlisted driver crashed my car.
7. Where you park affects your premium
Parking in a safer place, such as a locked garage, and having an alarm can both reduce the car insurance cost for a new driver (depending on your insurer). And in terms of parking well, that’s not just to avoid theft, but also to keep your car safe from a myriad of intense Australian weather events.
The safer and healthier your car is, the better your car insurance cost as a new driver will be.
Side note: it’s not just the weather (read up on how to find a car hail protector) that affects your car. The atmosphere can too, for instance, salty sea air can corrode a car 10 x faster than dry air.
8. 15% off your car insurance cost as a new driver
Get your car insurance policy with PD insurance and you can earn 15% off your first year’s premium (at the time of writing; conditions apply). That’s a whopper discount, and it’s no accident – we care about our members and want to build lasting relationships built on trust.
As your insurance provider, it’s just another way to say we’ve got your back.