Looking around for your first car is an exciting time! But in the midst of looking for your shiny new purchase, there’s a lot to consider – from possible loan finance to what type of insurance is best for you.
In recent years, young drivers have been considered a high risk for injury or even death on our roads. This means that premiums for car insurance can be quite high for those under 25 years. Here’s some tips to get you started in finding the right insurance for you:
Make insurance you’re first call, as the cost can factor into any borrowing you may take out to purchase your car. And don’t forget to include running costs, such as petrol and servicing for your vehicle, as part of your overall budget.
Consider that in the event of a claim, you may have to pay an ‘age excess’ as a young driver under 25 years. Checking your policy before you take it out, will make you aware of what excesses may apply, so you can be prepared.
Shop around before taking out your policy. Get quotes from at least three different insurers. You could save yourself hundreds of dollars each year.
Choose a car that is the best your budget will allow. Consider too that the more expensive the car, the more costly your insurance.
Check with your insurer to see if there are any ways that you can minimise the cost of your premium. For example, will you receive a discount for taking a safe driving course or installing a safety device, such as an immobiliser or alarm?
Always read the detailed fine print on any policy you take out. Make sure you are clear on your coverage obligations.
If you’re considering buying a car privately, you still need to shop around for insurance and be sure that you're covered before you drive away with your new car.
Keep a clean driving record as this will help keep your premiums lower and more affordable.
With a little bit of shopping around and being prepared with your budget overview, you’re first car purchase should be a time of real freedom and independence. Enjoy!