Young Drivers and Car Insurance in Australia
It's certainly thrilling -- getting behind the wheel and being in your own car for the very first time. Purchasing a vehicle can be a big investment and along with excitement, as well as some concern, comes much responsibility. A young driver has to drive safely, protect themselves, protect their passengers, as well as fellow drivers and pedestrians, and look after their biggest asset -- their car. Car insurance for young drivers is a very important part of driving, once you're ready and willing to hit the highway.
Insurance for young drivers is carried by many insurance companies. You have to figure out which category of vehicle insurance you want, as well as what you'll need. The 3 major types of insurance are comprehensive insurance (which is full coverage for yourself & other people), third party property (coverage for any damage to other cars & property), and third party property plus theft & fire (third party as well as coverage for theft, or fire damage to your vehicle).
For the inexperienced young driver, vehicle insurance can turn out to be a big expense. Statistically, drivers with less experience are more than likely to be involved in a larger number of accidents, so the burden on the insurance company is often higher. Don't despair -- if you're a safe driver and a good one, and you don't have any ""at fault"" claims for a number of years, you start to be less of a risk to the insurance company & those very high premiums will begin to go down as you build a no claim status.
Young drivers should be aware that all drivers in Australia need compulsory third party insurance, which is a type of insurance that protects you in case you cause personal injury to other humans, as a result of the way you drive. In New South Wales, this is called the Green Slip & you may have heard about it (or not). It's mandatory for when you're either getting, or renewing your vehicle registration. It's handled a bit differently according to which state you live in. In Western Australia for example, coverage is controlled only by the state government & it's incorporated right into your vehicle registration.
Car insurance for young drivers is a must have. While CTP is considered the only level of compulsory insurance, third party property insurance is also a very important financial safeguard to have. It could mean saving you from being sued for any damages -- if you're at fault in any collision. If your car is old & not worth much, then covering it comprehensively may not be the most cost effective. If you've gotten a loan to buy a car, & have used the vehicle as security for the loan, then your contract will state that the car must be fully insured.
And, even if car insurance for young drivers is usually expensive because it has to cover a higher than average risk, don't be tempted to accept the first insurance quote which pops up -- because if you shop around, you can save hundreds of dollars.
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