How To Insure a Young Driver Without Breaking The Bank
Your teenager has just learnt to drive and is chomping at the bit to get on the road. How do you affordably insure a young driver in SA?
Published: Wednesday, February 1st 2017
It is a well-known fact that a young driver faces higher premium rates with insurers. This is due to the higher risk they pose to insurance companies. Not only are new drivers more reckless and tend to drive faster, their inexperience in driving makes them a higher risk on the road. Statistics show that new drivers are more likely to be involved in an accident in their first year, compared to any other year of their life.
4 Ways To Lower The Premiums Of Teen Drivers
While not all young drivers are risk takers, some just lack the experience to get out of a tricky situation. Experience, in many cases, has proven to be valuable in avoiding a potential collision. Premiums, therefore, tend to be inflated until the driver turns 24. After which, the premiums decrease. Here are ways of lowering the premiums a bit to make them more affordable.
1. Go On An Advanced Driving Course
A defensive driving course certificate, or diploma, heightens your safety ranking. Your risk profile is lowered as you are considered a safer driver than if you have just passed the drivers course. The insurance company will take this into consideration when establishing your premiums.
2. Choose Your Car Wisely
A new driver, with a 1.8-litre car, is going to pay an excessively higher premium compared to an under 20-year-old driving a car with a lower ability to speed. The chances of a speeding teenager getting into an accident are far higher when they are in a faster car. Lower the risk, and the insurance premium will be significantly lowered.
3. Increase The Safety Options And Decrease The Features Of The Car
Fitting a tracking unit in the car will assist in decreasing the premiums marginally. Features to increase the performance of the car, however, will skyrocket the premium. Also keep in mind that expensive sound systems also affect the insurance cost. Not only does it increase the value of the car, but it is also understood that excessive noise in a car reduces the ability to concentrate fully on the road. If you park your car in a safe and secure space, make sure to mention that in the quote, it will certainly impact the premium.
4. Increase The Excess
The excess is the overall contribution that you have to pay toward a claim that you make in case of an incident. Choosing a higher excess usually lowers the premium, so you can get away with paying up to R200 less. This, however, is quite a risky move. Should you be involved in an accident, you could end up paying an excess that you cannot afford at that time. As younger drivers are at a higher risk of being in an accident, this is a more risky option.Should a young driver be involved in an accident, it is important to understand what penalties might be implemented. In most cases, penalties will be enforced on top of the excess that has to be paid. In cases where the young driver is driving their parent’s car, the insurance company will need to be notified. Should the young driver be involved in an accident, the insurance company can refuse to pay the claim. It is, therefore, advisable for a young driver to be covered at all times.