Hi all,
What's the best way to get insurance for a red P plater? Add them as a driver on your current insurance or get a new one?
Advice is appreciated.
RS
Insurance for a Red P Plate Driver
RSmith on 10/02/2023 - 14:39
Last edited 10/02/2023 - 15:14 by 1 other user
Last edited 10/02/2023 - 15:14 by 1 other user
Comments
This is what I do.
As soon as you mention them your premium sky rockets.
You kind of have to mention them for most policies if you choose not to have cover for drivers under a certain age.
Indeed, there only a few insurers left who cover under 25 drivers not listed on the policy schedule, the others have closed this loophole by requiring all drivers in the same household to be disclosed to the insurer - otherwise they're not covered
Should should mention if a P plater is a regular driver of the car
Comes under "Duty of Disclosure"
Otherwise they may refuse to pay the claim!May find exception if car is registered and insured in parents name.
Isn't it the vehicle that is insured? Who owns that?
Vehicle is owned by the parents.
I suggest that you review your current vehicle insurance policy and determine if you have to name all drivers or if you don't need to.
Ideally you can do as suggested by Muzeeb above.
Depends on the price difference and what the policy covers. There's three options:
- Get their own policy
- Add them on as a regular driver
- Leave them off the policy completely and pay the "unlisted", "age", "inexperience" (one or a combination of those) excess when there's a claim.
Note that each insurer's policy is different and you should read the PDS' carefully before settling for one of the above (in particular, option 3).
Thanks all. I think I got the answer and will do as suggested by Muzeeb. Time for me to go and read the PDS.
Following is mentioned in the certificate of insurance…
Age excess Driver under the age of 21 $800
Driver aged 21-24 $450
Inexperienced driver excess $400
This excess will not apply if an age excess has been applied
What insurer is this? Those are pretty low excesses.
Coles. It's for 3rd party fire and theft.
It's for 3rd party fire and theft.
Which is almost useless unless your car isn't worth anything.
I know some insurers have a clause in the PDS around unlisted drivers that live in the same house, like Bingle - How much will my excess be?
Example 3
You select an excess of $895 and the driver of your car is under 25 and lives at the same address as you or regularly drives your car- but wasn’t listed on your policy as a driver.
Standard excess ($895)
Age excess ($600)
Unlisted household member or unlisted driver excess ($1,950)
Total Excess Amount ($3,445)
Be careful of budget insurers. Some of them will specifically not cover household members that aren’t listed on you policy.
I added p plater to the policy of the most common vehicle driven. Yes it drove up the premium but I don’t want any hassle if push comes to crash. The other vehicle have not listed, but would only likely drive a few times a year - specifically because not listed.
agree.. they are budget for a reason…
Some of them will specifically not cover household members that aren’t listed on you policy.
They make that pretty clear when you get the insurance in the first place, and also when renewing.
Its not worth lying to insurance companies… or bending truth.. they can use anything to get out of paying…
Yes as others have mentioned check if you must list all family / household members who may drive it anytime. If you are getting just fire and theft then check hos much premium goes up if you add the P plater. Just also check you havent mentioned any unlisted driver excess in your numbers for coles - check that they dont have that as well
What we did (as we had multiple vehicles) was to insure them for the old car only (which was still double the normal amount).
Then after a year I managed to acquire a cheap second hand car (even less value than the old car) and insure them for that - half the amount of the other card (the P plater prompted ran into the back of someone - luckily damaging only our car and not the person in front). $1500 excess.
I taught both of my kids to drive in an old car(the good old days) . My car was practically worthless (insured for 3rd party property damage only) & I was happy for my kids to use that car after they got their licence. When my kids ultimately bought their own cars & needed comprehensive insurance, they were able to demonstrate a good driving record & nil claims. This helped in getting insurance at a reasonable price. Good luck
There's two school's of thought here.
1 -P platers are drivers at the highest risk of having an accident, so you should put them in a car that's cheap too insure.
2- P plater are drivers at the highest risk of having an accident, so you should put them in the newest safest car available.I encourage mine to drive the 2020 car with millions of airbags, but he prefers the mx-5 from last century.
If you are in WA, RAC seem to have a very generous policy when it unlisted driver policy. Still some vague statements in the policy that 'regular' drivers should be listed that could come back to bite though.
Just pay the age / years experience excess if they have an accident.
As soon as you mention them your premium sky rockets.
Put the policy premium price difference away in the event they need to make a claim.