While you were learning to drive it’s likely you were covered by your parent’s car insurance as you clocked up the hours for your logbook.
And probably for the occasions you borrowed their car once you passed your test.
But now if you’re looking to buy your own car, or you just have, then you’ve got to make sure you are adequately and independently insured.
How to insure a new driver’s car is one of the most common questions insurance companies and brokers are asked and there are a few things you need to weigh up and discuss before buying a policy.
The downside to being under 25 is that car insurance can be a lot more expensive compared to costs for older drivers.
Unfortunately one of the ways to reduce premiums involves building a safe driving record, which takes time.
However you can sometimes get a price reduction by increasing the excess that you pay if you have an accident, bundling other insurances to receive a loyalty discount, purchasing online and buying a cheaper car.
Shop around for the best deal, and remember not all car insurance is created equal, so check the small print.
Paying a little more may save you in the long run.
What type of car insurance do you need?
Compulsory Third Party (CTP) insurance is mandatory (you must have it) to register your car and it’s very important because it covers your liability, or whoever drives your car, for injuries caused to someone else in an accident, anywhere in Australia.
If your vehicle is not insured, you may be personally liable for any injuries you cause and other penalties may apply, which can run into many thousands of dollars. So don’t risk not having it.
There are different regulations regarding CTP and you’ll need to contact the transport authority in your state or territory to get as much information as you can on CTP insurance.
Third Party Property Damage
This is usually the most basic car insurance policy that covers the cost of repairs to someone else’s car or property if you’re at fault in an accident – but it doesn’t cover your car.
This is a good choice if your car is old and is worth less than the cost of insurance.
Third Party Fire and Theft
This kind of car insurance is also a low cost policy that covers the cost of repairing someone else’s car if you are the at fault driver plus you’re covered if your car is stolen or catches fire.
The most popular type of car insurance is also usually the most expensive, as it covers you for more events.
A fully comprehensive car insurance policy can cover loss or damage to your car through accident and fire or theft and damage to a third party’s vehicle if you are at fault.
Many insurance companies have additional benefits like hire car cover if your vehicle has been stolen, while repairs are being made, emergency accommodation if you're away from home, new car replacement and personal effects cover.
Do the research
There are lots of comparison sites online for you to research and compare quotes from different insurers.
Make sure you understand the terms and conditions and what’s included and what’s excluded in your cover, for example, windscreen replacement.
NRMA Insurance offers all four types of car insurance. Find out what policy may suit you best here.