Car insurance tips for young drivers in Australia

Getting car insurance can be an expensive process for young drivers in Australia. As members of the country’s highest risk driving demographic, young drivers are forced to foot the bill for the risky driving habits of their entire generation.

In some states, insurance for young inexperienced drivers can be so expensive that young drivers are effectively forced to take stripped down cover options.

However, this doesn’t mean young drivers have no control over how much insurance they pay.

If you understand how insurers calculate risk and rates, there are several ways that you can reduce your insurance rates. Here are six young driver car insurance tips that can help you get cheaper rates.

Tip #1 – Drive less

First time car insurance tips don’t get simpler than this. The less you drive your car, the less likely you are to have an accident. This simple fact means that insurers will score your risk according to how many thousands of kilometres you expect to drive every year.

This doesn’t mean you need to leave your car parked in the garage while you walk to university, but it does mean that avoiding road trips, intercity driving and casual use of your car, can help you get more affordable insurance.

Tip #2 – Be smart when choosing your car

The profile of a driver – their age, gender and driving experience – is just a part of the picture used to calculate insurance rates. The actual vehicle being insured is equally important. Vehicle model, engine size, age and price all play a role in how insurance is priced.

Here are some auto insurance tips and tricks for choosing your car:

Don’t buy a high performance or sports car, these automatically attract higher insurance rates.
Choose a car that has spare parts that are readily available. This means avoiding exotic foreign imports or older cars where parts are likely to be scarce.
Go with standard specs and avoid modifying or over-personalizing your car. Avoid any performance enhancements in particular, they are a red flag for accident risk.
Think middle-aged and boring when you buy a car – family cars are generally driven by more careful drivers, have lower accident rates, and are therefore cheaper to insure.
Get a car with good safety features. Cars with good passive safety features are more likely to avoid accidents and attract cheaper insurance.
Choose a fuel-efficient car. Some insurers offer discounts on cars that produce low emissions and consume less fuel.

Tip #3 – Take an advanced driving course

If you’re a young driver, one of the few things you can do to set yourself apart from your demographic group is to improve your skills as a driver.

One way to do this is to take an advanced or skilled drivers course, which focuses on teaching you advanced strategies to improve your driving ability and handle your vehicle in a variety of hazardous scenarios. Once you’ve passed an advanced driving course you’ll qualify for discounted rates at some insurers.

Tip #4 – Adjust your excess

Your insurance excess is the amount of money you are expected to contribute towards damage caused by a car accident you caused. Many insurers will reduce the monthly insurance rates you pay if you are prepared to pay more money towards your claim, in the event of a car accident.

Before negotiating a large excess to decrease your rates, ensure that you’ll be able to afford to pay the excess in the event of an accident.

Tip #5 – Try telematics insurance

One of the most frustrating things about being a good young driver is that you typically won’t be rewarded for driving responsibly. Instead you are treated the same way as everyone else in your age group – as an insurance risk.

However, telematics insurance treats drivers as individuals, tracking and scoring their driving behaviour to generate a very accurate picture of driving ability.

This is achieved by using sophisticated motion tracking software that can analyse how safely you drive. This software can either be installed on your smartphone as an app, or you can have a telematics black box installed in your car.

Either option will supply telematics insurers with accurate driving data that allows them to reward safe young drivers with fair insurance rates.

At UbiCar we offer telematics insurance via our mobile app.

Here’s how it works

Save on Your Monthly Car Insurance

Download UbiCar from your app store
Take at least 5 trips and we’ll score your driving
Get a quote within minutes

Tip #6 – Use a family policy

This is one of the most effective teenage car insurance tips if you’re a learner or P plater living at home and driving the family car. Get your parents to contact their insurers and have you listed on their policy. This will typically bump up their insurance rates, but not nearly as much as getting a separate policy.

If you’re involved in an accident that is your fault, you’ll then need to pay an extra age excess towards the claim. Some insurers don’t even require your parents to list you on their plan – just be aware that this may increase the age excess that is payable if you cause an accident.