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Insurance for P-plater's?

Discussion in 'The Pub' started by dobbo, Nov 27, 2013.

  1. Hi,
    My son has just bought a car (tradie ute for $6k) and is about to sit his 'P' test for a car here in NSW.
    Seeing there are alot of younger folk on here, l thought this place would be a good place to ask;
    What/how do most 'P' platers get insurance (full-comp) without paying exorbitant annual premiums?

    I accept that there will be huge excess cost, but the annual fee is up there. I mainly want the car covered for theft & fire , as l know if he crashes the excess will be big $$$.
    I have been told to register the car in my name (as l am over 45, and have a 60%ncb regarding insurance), then list him as an additional driver.
    I have done this getting a few quotes online; however, as soon as l add him as an additional driver, the premium increases by around $1000 per annum.

    Someone suggested that l take out insurance in my name and not to list him, if l need to make a claim, l have the standard excess; however, if he has an accident as a non-listed driver, the excess is about $2000, although my yearly premium remains low.
  2. Qbe seems to be the cheapest insurance going around. Mine was cheap as even though I was a P plater at the time. I am 40 though but on the flip side have a bad history of 80 demerit points and 3 licence suspensions.
  3. Thanks for the reply. I will check out QBE.

    so far,
    the most suitable insurance that I have found is
    Youi ($338) as me listed as the main driver and not listing my son; then as a non-listed driver if he crashes it is a $2000 access.
    With most insurer's if I listed him, the premium increases to $1300 per annum with a $1200 access..... So either way the excess is hefty, if he prangs it.
    My main concern is theft (not that I live in a high crime area) or fire.

    Not much has changed over the years, I still remember insurance on one of my bikes back when I was U25, at $2000 per annum; although, some fudging by the bike shop to say I had attended a few rider trg courses brought it down to around $1200pa.
  4. It's always been the same for all of us. The only way around it is for kids to get over themselves and their "I deserve a fancy new car/bike" attitudes and start with a really cheap vehicle, then bide their time, PROVE they can drive/ride safely, and build up some no-claim. Wrangling things and insuring their vehicle as yours sets that process back years and rather than doing them a favour can end up costing them in the long run.
    • Agree Agree x 1
  5. I know a lot of parents insure the vehicle with the 'P' plater as a named driver. Although that doesn't help the P plater gain a 'no claim bonus'.

    My first car was a piece of shit so I only bothered with third party fire and theft, which was somewhat cheaper and depending the company will give 'credit' towards a no claim bonus when you go to Full Comp.
  6. Fire ands theft is always cheaper, but doesn't help much if in your youthful inexperience you run up the back of a $100,000 Mercedes...

    I've got all my policies with QBE: I hear people complain about them, but you can only judge on your own experience, and for me with premiums and a few claims they've been terrific.

  7. Most 'fire and theft' policies are also 3rd party property......
  8. Ah, ok then, (I have never had a 'fire and theft' policy so I'm not familiar with the exact terms!)
  9. My first 3 cars and 2 bikes were insured 3rd party Fire and Theft.

    Interesting though 7 years ago we bought an '85 Colt for me to use on weekends to take the kids to sport (wife worked 100km away on Saturdays) and to start the eldest learning. No insurance company would do 3rd Party Fire Theft on it. Basic 3rd party yes, full comp yes, but fire/theft nope.

    As an aside - my wife got Monday to Friday job and the eldest grew somewhat more than expected and could fit in the Colt.
  10. Tried the fire & theft angle, but it made fluk-all difference.

    Anyhow, thanks for the tips.
  11. QBE third party property. 90 bucks per annum for bike

    No crashes in 3 years.

    My car was worth less than the excess.

    I also read a disclosure that said fire and left only covers bikes on property that aren't being used on the road.

    P. S. I am 20.
  12. #12 iClint, Nov 29, 2013
    Last edited: Nov 29, 2013
    why would you insure a ute you paid $6k for? (other than 3rd party property)

    you paid 6k for the ute - lets say $1k for the insurance premium, then $600 basic excess + $600 under 25yo excess and $400 inexperienced driver = $1600 excess

    $1k premium + $1600 excess - $500 CTP - $220 rego = a minimum payout of $2680 at most $3100 depending on how the rego costs are prorated.

    the only way this even comes close to benefiting you is if someone hits your car and is at fault and there is no excess to pay.

    If it were me I'd get 3rd party property and put what you would have spent into savings and them keep building on that savings, with the goal being you have the money to replace the vehicle should it be destroyed, or a nice lump of money to buy a better car/bike when insurance is cheaper and you have matured was a driver.



    Here is something that catches a lot of young road users out.

    they get the car usually on finance, they get the insurance usually pay by the month, they reduce the premium with a higher excess.... then the unthinkable happens, while texting their mates they run up the arse of the car in front of them.

    it's all good I'm insured, call the insurance company.

    here is the kicker!

    you have to pay out the entire premium up front before claiming so pay by the month just became pay up NOW!

    your basic excess that you increased by $400 to reduce the premium by $100 means you have a $1000 excess

    add in under 25yo ~$600

    and inexperienced driver (P's) $400

    you might be up for shelling out $2000-$3000 before you can even make a claim.

    If you are with a good insurer they may let you deduct the costs from the pay out GREAT!.... oh but you bought the car on finance so all that money is going to the lender, but it doesn't cover the principle you still owe the lender.

    Now you stuck still paying out a few grand on a car you no longer own.
  13. and if that young driver hits somebody else's Mercedes the insurance on that $6,000 car just saved you from going bankrupt.
    Many insurers will not touch a young person asking for third party property. The potential payouts far exceed what they will recover in premiums.
    Not everyone can pluck six ground out of their gilded arseholes and a $6k vehicle for them is a major investment. If like many they needed a loan the finance company REQUIRES you to carry comprehensive cover as part of the loan T&C. Most young people cannot get unsecured finance, either, so there's no option there.
    Waving figures around in the air is all well and good in theory, but when the bumpers clash that's all it is and won't fix anything or get anyone to their job on time.
  14. #14 NSSherlock, Nov 29, 2013
    Last edited: Nov 29, 2013
    This is a good idea. Have him save for the age excess.
    Although, I'm not sure how an insurance company defines "regular driver" and if you *need* to add a driver to the policy if they are a "regular driver".
    Technicalities can sometimes catch people out.

    Other than that all you can do is shop around. You can get some discounts with CTP and Car and even house on witht he same insurer and with things like NRMA etc membership.