Avoiding “the youth tax”: How under 25s could save on car insurance in 2024
How much is insurance for a car? When you're under 25, the average car insurance cost can be much higher. Here's how to avoid the "youth tax".
Sponsored by Bingle Insurance, which offers affordable car insurance without the pumped-up price. To find out more about third-party and comprehensive insurance, visit the Bingle website today.
Under-25 car insurance can be expensive. But the good news is that affording car insurance if you're under 25 doesn't have to be a pipe dream! By making careful decisions about your vehicle, you may be able to make savings on your policy.
1. Switch your car insurer
How much is car insurance when you're a young driver? Well, that depends.
As with many financial products, shopping around for car insurance can be a great way to reduce your overall expenses.
Whether you're a P-plater buying car insurance for the first time or looking to update an existing policy, it's important to choose a policy that suits your particular needs.
Let's take a look at Bingle's car insurance policies as an example.
Bingle allows customers to choose from a Standard excess range that suits their needs. The types of excesses that apply to your Bingle policy are outlined in the PDS and also stated on your certificate of insurance. The Standard Excess you choose is one of the various factors that determine your premium. Choosing a higher excess can reduce your premium. However, you should ensure the excess you choose is one you are comfortable paying in the event of a claim. You should also know that for drivers under 25, an additional excess will apply – the Age excess.
You can also check out Bingle's Premiums, Excesses and Claims Guide for more information.
2. Rethink your model of car
When your insurer is calculating car insurance costs, they're weighing up several different factors such as your age, your prior claims history and where you live, just to name a few!
But did you know that the type of car you drive can actually have a big influence on your car insurance cost too? The make, model and age all need to be factored in, to calculate the costs of repair or replacement in the event of an accident. Some cars may also be considered an increased risk for theft and damage, which could push the premium up further too, depending on the insurer.
So before you buy your first (or next) car, make sure you check in advance how it might affect your insurance costs. Bingle makes this process quick and easy with online quoting, which should be able to provide you with an indication of the cost of insuring a particular vehicle.
3. Implement safe driving habits
Implementing safe driving habits can help to reduce the likelihood of being involved in a car accident.
When listing a driver for a Bingle car insurance policy, Bingle may ask you to provide information about the driver's claim history and driving experience which may impact your premium, among other factors.
You can find some tips on safe driving for young drivers on Bingle's website.
4. Decide between third-party and comprehensive insurance
In Australia, two of the most common types of car insurance are third-party property damage and comprehensive. The specifics can vary from insurer to insurer, including the amount covered and types of damage covered.
You can read more about the distinction between them over at MoneySmart. However, in basic terms, you can generally break it down like this:
- Third Party Property Damage insurance covers accidental loss or damage to someone else's car or property that's caused by your car.
- Comprehensive insurance covers accidental loss or damage of someone else's car or property too. However, it also covers accidental loss or damage to your own car. For example, driving accidents, nature (storm, hail or fire) or something else like theft or malicious damage. For full details of what is covered, be sure to read the relevant PDS.
As you might expect, third-party property damage insurance can be cheaper than comprehensive car insurance. So if it sounds like the right cover for you, opting for Third Party Property Damage insurance can reduce insurance costs.
With that said – comprehensive insurance policies can potentially save you money in the long run. If you get into an accident and your car is determined as a total loss with third-party property damage insurance, you could be up for the cost of replacing your vehicle – and potentially covering excess too!
Comprehensive policies – like Bingle's comprehensive insurance policy – provide cover for accidental loss or damage caused by driving accidents, nature (e.g., storm, hail or fire) or something else like theft or malicious damage.*
With Bingle Comprehensive Car insurance, there are optional extras available (for an additional premium), like excess-free Windscreen and Window Glass Only Cover, Keep Mobile (hire car) and New for Old car replacement (provided your car is 3 years old or less).* For more information about optional extras, read the PDS.
Everyone's car insurance needs are different, so make sure you look around to find the right product for your needs. But adding optional extras like those mentioned above to your policy could potentially bring down your costs in the long run.
Learn more about affordable car insurance for young drivers with Bingle
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