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3 Car Insurance Tips for Young People in Australia

Finance Lifestyle News

There’s nothing more exciting for a young person than getting their driver’s license, and being able to drive themselves anywhere at any time. As exciting a moment as it may be, it’s important to stay safe behind the wheel. Beyond understanding the rules of the road, young people need to understand the importance of their car insurance policy. Here a few tips for teens to keep in mind as they explore an auto policy.

1. Remember to purchase green slip insurance.

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Across Australia, green slip insurance is legally required to be able to drive. Compulsory third-party insurance, also known as CTP and green slip, is the minimum auto insurance policy that protects drivers from financial liability in the event of any injuries or deaths of others in a car accident that you were involved in. In the Australian state of Queensland, you can choose to include CTP insurance if you do not have pre-paid green slip through your registration fees.

In some states, you have the option to choose the insurance company for the green slip, while others will include it through registering the vehicle. Bear in mind, this is essentially the bare minimum of coverage. It does not cover any damage done to your vehicle, other cars, or any property. There are more comprehensive options available to protect you on that front.

2. Consider how often you drive.

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Car insurance policies are not one-size-fits-all. You should consider how often you’re on the road. If you are just driving to and from school and work, you don’t need as significant of protection as someone who finds themselves driving for most of the day. If you find yourself looking up “car insurance QLD,” you’ll notice that there are a litany of coverage options available for drivers. Obviously, premiums increase with additional limits and coverage, and with adjustments made to deductibles in an auto insurance policy.

Comprehensive car insurance coverage will take care of the cost of repairs or even the replacement of your vehicle and property whether you’re at fault or not. It could also help out with emergency repairs, transportation, and damage caused by other drivers, depending on the insurer and the insurance policy.

Meanwhile, third-party property coverage can help cover any damage that may have been done to another person’s vehicle or property. This usually includes legal costs and claims service. However, this doesn’t account for the cost of damage to your own car. There’s also third-party fire & theft coverage, which helps provide cover for the loss or damage of your car if it’s stolen or catches fire.

3. Don’t hesitate to hunt for discounts.

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If you’re a new driver, your insurance premium will likely be higher than that of an experienced driver, as you are considered high-risk under most liability coverage. Insurance quotes may seem high, but be sure to ask an insurance agent about any potential discounts through insurance providers. For younger drivers, good student discounts are a great way to reduce car insurance costs. Doing well in the classroom can help your budget in the long run.

Going paperless or even paying your auto insurance company upfront for your current policy can save you money, as well as safe driving discounts. If you feel as though a car insurance policy is not in your budget right now, consider joining your parent’s current policy.

This could help you and your family members find great value car insurance. In fact, your family may be able to find greater savings by bundling with an insurance company. Some insurers extend beyond auto insurance to homeowners insurance, health insurance, and even life insurance. There are more ways than ever to find the best deal for you.