Under 25 insurance tip: Look for policies with low age excesses
An excess is what you pay when you make a claim. There's more than one type of excess and these can quickly add up for young drivers.
For example, if your mate crashes your car while on a Maccas run, you could be on the hook for 3 excesses:
- The policy's standard excess
- Another excess because of the driver's young age
- And another one based on the fact that the driver isn't listed on your insurance policy.
This table shows 4 different examples of excesses you could be responsible for and how much the 4 major underwriters charge for each. So before you sign on the dotted line, carefully look at what excesses you'll pay if you want to claim:
|Underwriter||Driver under age 21||Driver aged 21-24||Inexperienced driver||Unlisted driver|
Auto & General
Insurance Australia Group