Adding a Young Driver to My Car Insurance without Costing The Earth?

My 18yo son recently got his P's and my policy doesn't cover under 25yo drivers so I need to find a new insurer. I'm new to having a young driver in the family. How do I get them covered without being fleeced by an insurer?

I have a 2011 VW Passat market value $17k - $20k (it has low miles and is their top of the range model). My son would rarely drive, once every couple of months. The car is driven around 10,000 k's a year (or less). It lives on the street in an inner city suburb of Melb. I paid $850 this year for fully comp, market value, $800 excess. Being parked on the street I like the idea of getting market value if it was nicked. I'm rating 1, clean sheet, all that jazz.

Using the comparison sites I've dug into 8 or 10 insurers and there is always a catch:
If I add my son as a named driver my premiums go through the roof, $1800 is the cheapest I've found, that's quite a steep hike for someone who will drive my car 6 times a year.
Some insurers let you have unnamed under 25 drivers if you pay a hefty excess which I'm prepared to wear, however if the person resides at the same address they must be named or they are not covered.
A couple of insures do let me have an unnamed under 25 driver that does live with me, the premiums are fine at around $1000 and the excess is ok, but they don't do market value, only agreed which they drop right down to $11k. If I make the agreed value higher the premiums go through the roof.

Edit: All solved. Australia Post has cheapish insurance and covers unnamed under 25 drivers by charging $1600 excess if a claim is made.

Comments

  • +2

    Maybe your son should be driving more, get more practice in. Once every couple of months probably won't build up much driving instinct.

  • +2

    Just buy him a beater car, the costs are high because the likelihood of damage is.

    • It's permit paking only around here and there is only 1 permit issued per house so we are stuck as a 1 car household.

  • +3

    Adding a Young Driver to My Car Insurance without Costing The Earth?

    Buy a cheaper car…

  • +3

    I'm with Aust Post/QBE, cheap premium, comprehensive, market value: unlisted driver under 25 pays $2,400 excess.

    • You are a GEM! AusPost was perfect. Thank-you!!!!!

  • get them a:

    1. cheap car
    2. small displacement (generally cheaper to insure a car with a smaller engine than a larger one)
    3. car in their name (they will end up with 5-10% premium discount in a few years having held with the same company for that time)
    4. third party fire & theft insurance only (maybe comprehensive for first couple of years)

    also why would they only drive every 6 months? how are they going to gain experience such that they wont need to use their insurance in future

    • It's permit paking only around here and there is only 1 permit issued per house so we are stuck as a 1 car household.
      To get your P's these days you need 120 hours expierence which is around 118 hours more experience than I had in 1992 when I got my P's :). The double edged sword of living inner city is that public transport is excellent and pretty much everything else is within walking or cycling distance. The car simply doesn't get much use and most of the driving hours expierence would be sitting in city trafic jams.

      • ah gotcha

  • +1

    Does your Passat have all the bells and whistles?

    Just choose a company that allows unnominated drivers (like RACV) and just pay the extra excess (age excess, unnominated driver excess) in the event of an accident. Don't even mention your son on the policy.

    Also, as others have said above - how is your son meant to consolidate his new skills when he rarely drives? Seems a bit silly and just creating another future horrible driver for our roads.

  • +3

    Don't add as a listed driver. Get a policy that covers anyone who drives the car, with an age excess. That way you only pay if the kid has an accident.

    Also your value on a 2011 Passat seems very high unless it's an r36, and even then it's high, and I'm not sure if P players can drive them.

    • If the Insurance asks for listed driver and if we skip the driver who have same home address as the Insurer, it can cause trouble later if the unlisted driver makes an accident. If an insurance doesn't asks to list drivers then it should be fine. Most insurance PDS will ask to list the drivers who shares the same home address.

  • How do I get them covered without being fleeced by an insurer?

    LOL fleeced? You think insurance companies see an under 25 driver and go, yeah we can fleece so much extra cash out of them?

    Its totally the opposite, insurance companies see an under 25 driver and go, oh god the chances of them having a claim is extremely high!!! So I need to adjust the premiums to reflect.

    My son would rarely drive, once every couple of months.

    This isn't a selling point you think it is. For me it screams they lack experience at driving and each time they do drive, its all new to them, so higher chances of crashing.

    Some insurers let you have unnamed under 25 drivers if you pay a hefty excess which I'm prepared to wear, however if the person resides at the same address they must be named or they are not covered.

    I'm sure you can work out why……

  • +1

    I use auspost for my comprehensive car insurance and have an 18year old P plater.

    it's not cheap.
    excess $800 + inexperienced driver additional excess + $800

    • That's cheap compared to all the other quotes I've had. Thanks. I've gone with Auspost now.

  • however if the person resides at the same address they must be named or they are not covered.

    I'm with AAMi and was told that only regular drivers need to be named drivers. Might want to check the PDS before trusting anyone off the internet, but my daughter (unnamed on policy) had a no fault claim recently and they paid up without questions.

  • I'm with rollin. Their quote was the lowest for me. They don't charge extra for young drivers.

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