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Written by
Francis Taylor
Edited by
David RayfieldIf you've just gotten a nice set of wheels (even if it’s just nice to you), then it might be worth getting a schmick insurance policy to match. It might not be exciting, but it could be a necessity.
Let's start with the big one: younger drivers will usually pay more for Car Insurance than older, more experienced drivers. This is because according to the stats, younger drivers as a group, are more likely to have more car accidents than other road users.1
Provides the highest level of cover and is generally the most expensive. It will help cover the costs of most repairs if your or another person’s car is damaged in an accident. It’ll also provide a pay out if your car is written-off, to help cover the replacement costs.
Helps cover other people’s cars and property if you cause an accident and damage them (which can be handy if you accidentally back into someone’s Ferrari. Oh dear!)
As the name suggests, this is a compulsory level of cover that helps cover your liability for people injured or killed in an accident. However, each state and territory also has its own way of doing things, so it's worth reading up on how it works where you live.
Covers the same things as Third Party Property Insurance, with additional protection for fire or if someone steals your car.
Drivers under 25 often ask this question, and the answer depends on your circumstances. If you own a car, you will need 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.
As well as age, things 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. Adding minor modifications to the car such as roof racks and tow bars, may be considered non-standard accessories, which need to be listed, but will often still be covered by insurers.
If you’re living life like Vin Diesel with legal but complex modifications such as a modified exhaust or legal lift kits, they 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 restrictions 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’re 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. For example, in Victoria, one in six drivers who died on the roads in the last five years were aged between 18 and 25.2
According to the Transport Accident Commission, younger drivers were at greater risk on the roads for a range of reasons3 including:
These are sad findings, but these statistics show us why younger drivers may pay more for their Car Insurance.
So, drive safely. You’ll not only be protecting yourself but other drivers as well. If you do not need to make a claim on your policy, you 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 you some money on your premium.
Remember, it’s 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.
As a general rule, yes.
The road statistics show that older drivers are less likely to have an accident. So, because they’re less likely to make an insurance claim, the insurer can afford to offer a lower premium.4
Keep in mind that age isn’t the only factor that affects price, though. Insurers also look at the kind of car you drive and how many claims you’ve made in the past. If you’re a safe driver, this will usually reflect in a lower premium too.
All drivers need to be covered by Compulsory Third Party (CTP) or Greenslip insurance. However, whether you need your own policy depends on a few factors.
For one, you might be covered by your supervising driver; but in many cases you’ll need to be listed on their policy, or their policy will need to include cover for learner drivers.5 This will usually depend on the terms and conditions of the specific policy, too.
Alternatively, you might be able to buy your own policy. This can be the case if you own the car and drive it more than anyone else.6
Basically, you’ll need to check with your supervising driver if they have a policy that covers you. If they can’t, then you might need to take out a policy of your own.
Some insurers offer policies that cover you as a rideshare driver.7 However, this will also depend on the specific terms of your policy, so it’s worth reading the Product Disclosure Statement (PDS) to understand what you’re getting.
Most ridesharing platforms will also require you to hold a certain level of Car Insurance. This is the case for both Uber8 and among other platforms.
