Taking out motor insurance as a young driver can be very expensive, often making car ownership unaffordable. But there are ways to lower your risk and therefore your premiums.
Gari Dombo, the managing director for AFI, says insurance companies generally classify young drivers as high risk due to their lack of motoring experience, and this generally results in younger drivers being charged higher premiums.
The likelihood of a young, relatively inexperienced driver being involved in accidents is high owing to, among other factors, driving at speeds higher than the regulated limit and engaging in risky driving behaviour.
Experts also say a new driver is more likely to have an accident in the first year after passing their driving test than at any other time in their motoring lives.
How to improve your rating Dombo says there are several ways young drivers can improve their chances of getting lower premiums:
If you are involved in an accident with another vehicle, and you are at fault, the third party insurance covers you for these costs.
While third party insurance is not the same as comprehensive insurance, it can give younger drivers peace of mind in the event of a collision with another driver and the premiums won’t necessarily break the bank.
A quick survey on insurance aggregator website, Hippo.co.za, reveals that a 24-year-old driver who has never been insured previously, can get third party insurance cover for a 2006 Hyundai Getz 1.6 HS for a monthly premium ranging between R87 and R93.76. Save for two insurers, all the quotes provided for an excess amount of R1 250 with insurers such as Budget, Auto & General, Virseker, AA Insurance, First for Women, Dial Direct and Virgin Money.
The remaining two insurers that offered quotations were expensive by comparison. Standard Bank asked for a monthly premium of R126.44 for third party insurance with an excess of R5 000, while Regent Insurance quoted a monthly premium of R493.42 and a R2 500 excess.