Car insurance including 18 years old

fozzie on 18/05/2021 - 23:41
Last edited 18/05/2021 - 23:42

Hi everyone,

I would like some opinions please regarding car insurance that includes a P plater. Before having to add my child to my insurance my comprehensive insurance would be around $400 (up to 10.000 km a year). By adding her to the car insurance premium is now going to be at least $820 with bingle. I added her to my Aami for the remaining 40 days and it was $119 :(

The other option would be to get third party fire for $472 with Budget direct. Or Third party $379.

The car is a little and reliable 2014 Jazz (probably worth $10.000).

What would you do if you were in my situation? Thanks for any input.

Poll Options

  • 10
    Comprehensive with Bingle at $820
  • 7
    Third party Fire and theft $472
  • 2
    Third party $379
Financial Car Insurance Insurance

Comments

  • SF3 on 18/05/2021 - 23:47
    +9

    I reckon bite the bullet and go with comprehensive.

    Otherwise, it could be short term gain, but long term pain should your daughter be involved with some unfortunate incident.

    Despite the jokes here "Next Post from OP, daughter don't have comprehensive insurance…" - I don't think you want to put yourself through that?

    • fozzie on 18/05/2021 - 23:52

      Haha good point lol

  • MS Paint on 19/05/2021 - 00:11
    +2

    Stick with your current comprehensive insurance policy and don't register your daughter as a nominated driver.

    Just pay the extra excess' if she is involved in a claim.

    • andrek on 19/05/2021 - 04:59
      +6

      Need to check the terms of the current one, mine simply said unless specifically added, under 25s are not covered. So just paying extra excess was not an option.

    • ozssc on 19/05/2021 - 09:24
      +1

      Agreed - I'm with AAMI and whilst they weren't the cheapest for over-25s, it worked out overall cheaper to take the chance of paying a higher excess in the event of an accident (I have a 21 yr old). From memory, I worked out that as long as they didn't have a claimable accident more frequently than every 18 months, you would be slightly ahead comparing the extra monthly cost vs increased excess. I pay around $82/month for an 11 year old SUV (worth around $12k) but it would be over double that if my 21 year old was listed.

    • Joney on 19/05/2021 - 09:29

      Please read your PDS. There is generally a clause whereby unlisted drivers under 25 years of age, residing at the same residence are not covered. Otherwise no under 25 year old would ever buy insurance right? Just get a policy under mum or grandma's name and save big $$ right?

  • Cheeper on 19/05/2021 - 00:18
    +1

    TPP can be a good option depending on how likely it is that there could be an accident with a inexperienced driver using the car.
    Is your financial situation such that if there was an accident and the car was written off that you would be able to afford another one?
    There comes a time where you have to balance out the cost of comprehensive insurance against the "wholesale" value of the car.
    Sometime the benefit can be not good value for the outlay.
    Dont forget to add the excess to the premium for an at fault incident. Just counting the premium is not realistic.
    With a good TPP cover at least you will avoid the pain of having an accident with a very expensive car and there are a lot of those around these days.

    For a start I would get a few more TPP quotes.
    Mine is with GIO and I scored good TPP cover with a very low premium. However, having over 50 years driving experience with no at fault claim ever helped in getting that though….

  • thriftysach on 19/05/2021 - 00:40
    +1

    Might be good to try out woolworths insurance and tick the option that says 'Under 25s are covered' or something along those lines. The excess is crazy though, like you are looking at about 2000-3500, this is because young drivers attract an age excess as well. It isn't explicitly stated on insurance companies' websites as well.

    I am 19 and have aami third party fire and theft ctp under my own name for about $580 a year, only because my car is worth roughly 5-7k and I can afford any repairs, am willing to bite the bullet if my car gets written off and I am at fault.

  • Eeples on 19/05/2021 - 00:41
    +1

    Does your child drink or use drugs?…. if so, don't bother with comprehensive.

    Can you or your child afford to replace the car if it is written off? If so, don't bother with comprehensive.

    One should only insure what one can not afford to replace.

    • fozzie on 19/05/2021 - 00:57

      My child, doesn’t drink/ do drugs/ drive at night. She actually stays home a lot and will only be driving to go to her part time job and maybe sometime at tafe. So probably third party should be fine. We can afford getting new car too.

      • apsilon on 19/05/2021 - 06:48

        Regardless of that she is an inexperienced driver and more likely to have an accident which is why insurance is higher. Given you can afford to replace the car if it were written off tomorrow and not worry about the $10k loss then 3rd party is probably sufficient.

  • fozzie on 19/05/2021 - 01:00

    Thanks for all the comments! Some great insights! I will be doing some more shopping around and then decide. She only drives occasionally, but things could change in the near future (especially if she gets a full time job and needs the car).
    She’s cautious and doesn’t go out with friends or anything like that. Nor she drinks. Obviously this is unknown by insurers who up price purely based on age and sex.

  • Trance N Dance on 19/05/2021 - 03:05
    +1

    Check NRMA with youngest driver as 18yo but unlisted. There's a under 25 excess on top of the normal excess but NRMA.

  • andrek on 19/05/2021 - 05:04
    +1

    I was in the same boat just the months ago. RAV4 2011. Adding a new under 25 driver is… uhm… eye opening. CTP and comprehensive almost doubles. I decided to stay with comprehensive, but changed the insurer to a cheaper one (from CGU to Bingle)

    • fozzie on 19/05/2021 - 18:00

      Yes bingle are the cheapest for comprehensive. So far I have had crazy quotes, including up to $2200!

  • follow on 19/05/2021 - 05:32
    +1

    RAC in WA you can you choose to not list them. You will pay an underage excess in the event of at fault claim.

    • Ivegottadog on 19/05/2021 - 08:13

      In SA, when I shopped around went with RAA.

  • Nugs on 19/05/2021 - 06:12
    +1

    Option 4; keep looking.
    There are so many options.
    For a $10k car I would keep comp.
    Not directly applicable, because I ended up settling for tpp ($1500 car for 18 year old). I found that it was cheaper to go through a broker (although they only sell Allianz) than directly from Allianz. Could not believe it (Ian Berry based in SA)
    .

    • fozzie on 19/05/2021 - 18:01

      I’m looking but some have come to $2200 for comprehensive! Bingle seems the cheapest

  • Ocker on 19/05/2021 - 08:19
    +1

    If your daughter is nominated as a driver of the car on your policy then when she comes to get her own insurance she will get recognised for claim free years on your policy.

    • MS Paint on 19/05/2021 - 09:07

      Are you sure that applies to all insurance companies?

    • fozzie on 19/05/2021 - 16:17

      That’s what I thought as well.

  • Ocker on 19/05/2021 - 09:52
    +1

    Cannot vouch for all but it does with RACV - something worth checking out with others.

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