If you're a student looking for car insurance, chances are that you're a young driver.
Car insurers determine their premiums based on factors including age, gender, the area you live in and the type of car you drive. Based on age alone, most students will tend to have higher premiums because statistics show that younger drivers are more likely to be involved in accidents and therefore make claims on their policies.
But it is possible for students to lower the rate of their car insurance premium.
Choose a lower risk car: Insurers increase the premiums for cars associated with high speeds and frequent thefts, so avoid those types of cars. Also avoid modified cars and those that require rare or expensive parts.
Keep a good driving record: A clean driving record, clear of traffic offences and accidents, may increase your chance for a lower premium, as taking an approved driving course like Defensive Driving might also.
Keep in mind that car insurers will not cover you for damage caused by drunk driving, racing or other illegal activity.
Don't modify your car: As mentioned above, modified cars are harder to insure and attract higher premiums, but did you know that by modifying your car, you could even nullify your policy? Don't risk your claim being rejected when you need it most. Either avoid modifications or inform your insurer beforehand to see how it will affect your policy.
Be aware of excesses: You can choose a basic excess for your car insurance policy to reduce the cost of your up-front premium, but be aware that there are other excesses that may apply for student drivers. For example, the age excess is applied on top of your basic excess if the driver at the time was under 25, and the inexperienced driver excess may apply for drivers over 25 who have not held their Australian drivers licence for over two years.
Choose the right type of policy for you.
Choose a policy that suits your circumstances and budget.
Comprehensive car insurance generally covers damage to other people's vehicles and property when you are at fault, as well as your own. This is the most expensive cover, but important if you value your car.
Third Party Fire and Theft generally covers damage to other people's vehicles or property when you are at fault, and cover for your car only if it is stolen or damaged by fire.
Third Party Property generally covers damage to other people's vehicles and property when you are at fault, but not your own. This is the cheapest type of car insurance but important in order to exempt you from legal liability for damage that you may cause.
Compare quotes to save money
The best way for student drivers to save money on car insurance is to compare a few quotes from different insurers before choosing the one that suits them best.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.