Car insurance for students
Expert tips for car insurance for students
Our car insurance expert, Adrian Taylor, has tips for helping students choose the right car insurance.
Adrian Taylor
Executive General Manager – General Insurance
Consider matching your policy to your budget
If you’re a student, you might not have the budget for comprehensive cover. While Compulsory Third Party (CTP) insurance – sometimes known as Green Slip – is mandatory, other optional car insurance levels of cover are available and can be much cheaper than a comprehensive policy.
Save on your car insurance premium with a higher excess
By opting for a higher excess you may get a lower premium (and vice versa). You may need to pay your insurer this amount if you make an insurance claim, such as if you’re in an at-fault accident, so make sure you can afford it before you raise your excess.
Compare car insurance quotes
When you’re considered an inexperienced driver by your insurance provider, there may be additional excesses applicable on top of the basic excess. These may vary across insurers, which is why you should compare car insurance. Once you reach 26, you may be considered an experienced driver, so it can be worth checking out your car insurance options once those additional excesses no longer apply. You may also be able to find cheaper premiums.
Understanding car insurance for students
What is car insurance for students?
Car insurance for students may not be a specific product, but that doesn’t mean there isn’t a car insurance policy suitable to you. Depending on the level of cover, it may provide financial protection if you’re in an accident and cause damage to another person or their property, or you need your car to be repaired or replaced.
What type of car insurance is available to students?
For all registered Australian vehicles, it’s mandatory to take out CTP insurance for your vehicle. CTP insurance covers any injury or death you cause to another person or yourself while behind the wheel. On top of CTP insurance, there are three more levels of cover you can choose from:
- Third Party Property Damage (TPPD). This is the lowest level of cover. On top of what CTP covers, you may also be covered for any damage you’ve done to another’s property in an accident. If you have a car with a low market value, this option may suit your circumstances.
- Third Party Fire and Theft (TPFT). In addition to cover for damage to another person’s car or property, with TPFT, you may be covered for damages to your car from fire and theft of your own car, but you won’t be covered for accidental damage you cause to it.
- Comprehensive car insurance. This is the highest level of car insurance cover. Along with everything above, you will also be covered for collision damage for your own vehicle, as well as any third parties, even when you are at fault.
Before purchasing a policy, check the inclusions, exclusions and limits by reading the Product Disclosure Statement (PDS). Read the Target Market Determination (TMD) to check if the policy is right for your needs.
Being a student will not increase your car insurance premiums. However, many students are under 25, and younger drivers are considered a higher risk to insure. Young drivers will typically incur a higher premium due to their lack of driving experience.
Factors that may affect the cost of car insurance include:
- Your age
- Your driving record
- Your licence type
- Your car’s make and model
- Where you park
- How often you drive
- Your claims history.
Should I stay on my parent’s policy?
If you drive your own car, you should consider your own car insurance policy. However, if you’re a student and under 25 years of age, it may be beneficial for you to remain as a regular or additional driver on your parent’s car insurance policy if you drive the family vehicle.
How can I save money on my car insurance as a student?
If you’re looking to save money on your premium, there are a few ways to reduce your car insurance costs, including:
- Increasing your excess
- Practicing safe driving to keep your driving record clean
- Taking advantage of no claims bonus and other discounts
- Avoiding car modifications
- Buying your policy online
- Paying annually instead of monthly
- Regularly comparing car insurance quotes.
Meet our car insurance expert, Adrian Taylor
As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.