Drivers under 25 often ask this question, and the answer depends on your circumstances. If you own a car, you may be able to take out your own Car Insurance policy, even if you still live with your parents.
If you don’t have your own car, but drive your parent’s car (or cars), then you may be able to be added as an additional driver on their policy. If you drive a parent’s car very frequently, then it could be a good idea to be listed as a regular driver of that car.
It doesn’t matter how old you are, as there are four different types of insurance available to all drivers. Comprehensive, Third Party Fire & Theft, Third Party Property and Compulsory Third Party.
As well as age, variables that can affect your insurance premium include but are not limited to:
That depends on the modifications and insurer. Before you buy a modified car, you may want to check whether or not an insurer will cover it. Consider things like: Adding minor modifications to the car such as roof racks and tow bars, may be considered non standard accessories and may need to be listedLegal but complex modifications such as a modified exhaust or legal lift kits, may not be covered and you should check with your insurer first, to see if these items can be covered by your current policy. .Illegal or dangerous modifications may completely void your insurance policy.
Restrictions do vary between states, but generally if you’re under 25 and/or on a provisional licence, there may be restriction on your ability to drive a high-powered car.
Some factors that are usually considered when determining whether a car is or is not high performance include:
An insurer will obviously not insure a car you are not legally allowed to drive. You may want to consider checking if you are able to insure your new car before you finalise the purchase.
The short answer is, it depends. Insurance companies work out the risks they are taking based on numbers, and young drivers are statistically much more likely to be involved in an accident.
According to the TAC, while 18 to 25 year olds make up only 10% of licence holders, they make up 18% of those killed in car crashes (2019).
A 2019 Growing up in Australia study found that younger drivers were at greater risk on the roads for a range of reasons including:
These are sad findings, but these statistics show us why younger drivers may pay more for their Car Insurance.
So, drive safe. You’ll not only be protecting yourself but other drivers as as well. If you do not need to make a claim on your policyyou could also start earning your no claims discount available with various car insurance providers.
There are a few things you could do which may save on your premium.
Remember, it is important that you are completely honest with your insurer about your details, your car, who will drive it, and what you use it for. Failure to tell your insurer important information, or giving them misleading information could mean you won’t be covered if there’s an accident
Rather than just going with the same insurer your parents use, iSelect can help you compare from a range of policies and providers*.
So get started comparing policies the easy way with iSelect. Compare online, or call us today on 13 19 20.
Last updated: 10/05/2022