Alexander Forbes Insurance has recommended that parents arrange for their children to have their own insurance cover as soon as they acquire their first vehicle.
Even though this can cost more to start, the benefits are that the child will build his own safe driving history sooner and accidents would not be on the parent’s record.
The parent may still pay the premiums for the cover by linking payments to his account
Gari Dombo, MD for Alexander Forbes Insurance says insurance companies generally classify young drivers as high risk due to their lack of motoring experience, and this results in them being charged higher premiums.
He adds, “The likelihood of a young, relatively inexperienced driver being involved in accidents is high owing to among other factors, driving at higher than the regulated speed limit and risky driving behaviour.”
According to Alexander Forbes Insurance statistics 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 career.
Dombo suggests that in order for the youth to reduce car insurance premiums they need to:
- Drive a vehicle with a small engine
- Keep the vehicle in a garage
- Limit their mileage
- Install a tracking device for stolen recovery purposes
- Find an insurance package with driver behaviour telematic feedback that helps improve driving habits
- Build up a good claims track record
- Elect to pay a higher excess
It is important for the young driver to build up their own driving history and no claims bonus, so it’s best that they take out an insurance policy in their own name. As they become more experienced with a proven good record their rates will reduce as insurance companies are reassured.
“In addition to the above another good way to keep risk down is to enhance the security features of your car, and consider taking defensive driving courses,” concluded Dombo.
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