How To Get Affordable Car Insurance For Young Drivers & Students

We know that getting your first car is an exciting milestone in a young person’s life. A car gives you independence and the freedom to travel to university, visit your friends or get to work. However, we know that finding affordable car insurance for young drivers can be hard. Discover more as Budget Insurance shares the information you need to get the right car insurance. 

Factors that influence 1st time insurance for young drivers

If you’re a young driver and want to get your first auto insurance, it’s vital to understand what insurers look for when assessing your application. Here are the main elements that impact first-time car insurance premiums for students and young drivers and students.

• Age:  A driver who is under 25 typically lacks car driving experience. For this reason, car insurance companies consider them risky drivers. That’s why the under-25 premiums are higher than those for older and more experienced drivers. However, if a young driver maintains a good driving record, some insurers may drop their premiums when they turn 19 or 21 and definitely when they hit 25.

• Lifestyle: Younger people are often at a stage where they tend to take more risks. For instance, they may attend events and functions. This can be attributed to increased instances of drunk driving and reckless driving.

• Credit record: A driver’s credit score[1] influences auto insurance premiums. Since young drivers usually have a short credit record, they may pay higher premiums. Drivers with a reasonable credit history but a poor record will also pay higher premiums. Paying your credit accounts and insurance on time is vital to qualify for lower premiums in the future.

• Gender. Believe it or not, according to the data, women are considered less risky and generally pay lower premiums than males.

• The type of car you’re driving. The make and model of the car you’re insuring will influence your premiums. A luxurious or high-performance car tends to incur higher insurance premiums than an entry-level vehicle. Aftermarket additions such as an expensive audio system or mag wheels can also increase your premiums.

• Vehicle usage: A car used for personal purposes is exposed to fewer risks than one used for business. Usually, a vehicle used for business purposes attracts higher premiums. Ensure that you insure your business car for the right purpose to avoid the rejection of your claim in case of an accident.

• Location: Where you park your vehicle overnight affects your car insurance for students and young drivers. If parked in a locked garage behind a locked gate, premiums will probably be lower than if you had to park your car on the street. 

6 tips to get affordable car insurance for young drivers

There are proven methods for getting insurance for young drivers or students. Here are six that are easy to implement.

1. Compare car insurance for young drivers providers

If you wanted to buy a new car, would you do so at the first auto dealership you find? There’s a possibility that another dealership will offer you a better deal than the first one you find. Take a look at your options, and speak to a trained consultant, like our team at Budget Insurance. 

We recommend that you get a few quotes. The first car insurance company you approach may not give you the quotes for the best car insurance for young drivers. 

Look beyond the price when considering whether to accept a particular insurer’s offer. Check for things such as what the policy covers and doesn’t cover. Where possible and applicable, consider bundling auto and other insurance types such as home insurance. Doing so can result in lower insurance premiums.

2. Only opt for the car insurance cover you need

There are many different types of car insurance plans available. Here are the main insurance types to consider. 

• Comprehensive car insurance: This is excellent auto insurance if you want a wide range of cover. It protects you financially against car accidents and collisions, even in cases where you are at fault, along with cover for theft, fire, vandalism and natural disasters. However, more coverage means higher premiums compared to the alternatives.

• Third-party, fire and theft car insurance: For car insurance for young drivers, this option might suit you. It covers the damage you cause to someone else’s car or property, theft of your vehicle and fire damage. However, it doesn’t cover damages to your vehicle caused by an accident. The insurance premiums will be lower than comprehensive insurance. 

• Third-party-only car insurance: If you can’t afford either of the above options, you can get third-party-only insurance. It’s cheap car insurance for young drivers because it only covers damages to third-party properties. Your car isn’t covered if stolen, damaged in an accident, destroyed by fire or damaged during vandalism. This option is great when you drive an old and low-value vehicle.

Remember: because car insurance is short-term insurance, you can always upgrade at any point later to receive the kind of cover you want.

3. Choose a higher excess 

When getting car insurance, your policy will state the amount you’ll need to pay first when claiming. This fee is called a car insurance excess, and car insurers usually set the basic excess.

When applying for insurance, you must state the largest excess you want to pay. Instead of opting for the minimum stipulated, you can increase your excess and pay lower premiums.

This could be a good option if you can afford to pay that excess amount when you claim. Perhaps saving this money in an emergency fund is a good idea? 

4. Pay annually instead of monthly to get a better overall rate

Many car insurance policies require monthly payments. However, you could consider an annual payment. The good news is that some auto insurance companies will offer a discount to policyholders who pay a full annual premium.

5. Register the insurance under your own name

It may not seem to make sense to register your car insurance policy under your name because you have to pay a higher premium as opposed to your parents, for instance. This is known as ‘fronting’, which qualifies as insurance fraud.

Here are some reasons why you need to register insurance under your name: 

• You build an insurance profile that helps lower premiums over time, provided you keep a good driving record.

• You increase the chances of getting your claim accepted. If you’re involved in a car accident, and you claim, your insurer won’t have trouble processing your claim. You, the regular driver, and you own the car insurance policy. 

• You won’t face any legal troubles. Getting someone like a parent to appear as the regular driver and owner of your car is illegal and will result in your claim being rejected.

6. Drive safely and set a good driving record

Having a good driving record is a great way to get lower auto insurance premiums. You might not control all situations on the road, but how you drive can make a huge difference. It’s vital to be a safer driver, whether on the road or in parking.

Doing the following will go a long way toward helping you become a safer driver.

• Take a driving course. During these courses, you’re trained on how to drive on various road conditions and how to handle emergencies. Their purpose is to help you control your car when you face unexpected events. A certificate from a course will help you get more affordable car insurance for young drivers.

• Keep a safe driving distance. This rule helps you avoid bumping into cars ahead of you, causing a fender bender. 

• Strictly follow speed limits. Speeding is a major cause of accidents in South Africa. Our roads have speed limit signs to guide you. Adhering to these speeds will ensure you are safe on the road and will avoid any traffic fines. 

You can also install anti-theft devices such as immobilisers and other safety measures to deter car theft. This could help lower your insurance premiums.

Discover more Tips to help save money on your car insurance premiums. 

Get affordable car insurance for young drivers with Budget Insurance   

It’s simple to get auto insurance for young drivers. Simply request a free and no-obligation car insurance quote online. A trained consultant will guide you through the process, and you’ll soon have peace of mind and cover for your vehicle.