Passing that driving test and getting behind the wheel as a legal driver for the first time is an exhilarating experience. The sudden freedom to go wherever you want, whenever you want, without needing to ask a parent or a friend for a lift - a true highlight for any new driver.
However, there are a few things you need to know before you get behind the wheel to make sure you have the right kind of insurance for new drivers and that you know what you are and aren’t covered for.
Car Insurance for New Drivers: The Essentials
Car insurance is not optional, it’s compulsory! It is both a legal requirement and a critical protection mechanism that means that those out on the road who may not be able to pay out of pocket for damage repairs are covered. It’s essential that you get it because if you get caught without it, those carefree driving days will come to a screeching halt.
The 3 Main Types of Car Insurance Coverage
There are broadly three types of insurance coverage you can choose from:
1. Comprehensive coverage
This means you are fully covered for any incident, large or small. It is the best option if you don’t want to worry about paying extra expenses, but it is also the most expensive.
2. Third-party fire & theft
Your insurance only covers the damage to other vehicles, but not your own. However, it does protect your car from fire damage or theft.
3. Third-party
Like above, but without the fire and theft damage. This is the most limited insurance you can legally have, but it is also the cheapest.
Determining the Right Insurance Coverage
Choosing the right kind of insurance and understanding what it entails from the start is very important. There’s no correct answer here, and decisions are usually based on budget and the car’s value.
If you’re a cautious driver, on a budget, or have an old or low-value car, then third-party or third-party fire & theft might be a suitable option. If you’ve got a healthy budget, a brand new car or one of substantial value, then fully comprehensive might be the way forward. The right coverage provides adequate protection without causing financial strain.
Understanding Insurance Premiums
You can either pay for your yearly insurance in one go (usually the cheaper option) or pay in monthly instalments (the more expensive option). This is your insurance premium, and unfortunately, new drivers tend to get fairly high premiums until they’ve proven to the insurance provider that they are safe and responsible behind the wheel.
Age and lack of driving experience are two major reasons you can expect increased premiums at the beginning, as well as the type of vehicle you’re trying to insure. If you’re a brand new driver with a brand new sportscar, expect some pretty hefty premiums.
Why is Car Insurance Important for New Drivers?
As mentioned, car insurance is not something you can say yes or no to - it’s a legal necessity.
Financial Protection
Car insurance can protect new drivers from financial liabilities in case of accidents, which can be enormous if there’s significant damage. Even basic repairs, such as knocking out a dent in your door can be costly depending on the size and model, while any internal damage can cost thousands.
Irish Legal Requirements
No other way to say it - it’s the law. Ireland has some of the highest uninsured driver statistics in Europe - around 1 in 12 - but penalties for when you’re caught are severe, with fines going up to €5,000 and a licence suspension in the worst cases. It's very difficult to get insurance if you have ever been suspended.
Tips for New Drivers to Save on Insurance
Taking out your first driving insurance coverage as a new driver can be an eye-watering experience, but there are ways to keep those premiums slightly lower.
Safe Driving Discounts
Maintaining a clean driving record can qualify new drivers for safe driver discounts. Try to become a named driver on your parent’s car before passing your test; this period with no accidents may count towards a small discount. Most insurers will require a full year of experience to qualify for a discount.
Choosing the Right Vehicle
As mentioned, young drivers on the roads in ferociously fast sportscars are going to be paying huge premiums on their car insurance. Choosing a safer or less expensive vehicle can lead to lower insurance premiums.
Understanding Insurance Quotes
Wading through the seemingly infinite number of insurance possibilities can be exhausting, especially if you’re new to it. Many insurance websites are pretty easy to use; enter what you’re looking for, i.e., level of insurance, the car you have, and your age/licence number, and they should be able to give you a clear figure.
You’ll then probably have the option of paying it all upfront or in instalments, but do take the time to read through all the small print to make sure it covers you how you need it to. It’s vital that you take your time and shop around. Don’t just jump for the first deal.
The Role of Parents in New Driver Insurance
Parents can influence their children’s driving habits, both positively and negatively. Good role models lead to good new drivers, and bad ones have the opposite effect.
Parents as Role Models
Children and teenagers are surprisingly in tune with how their parents drive, even if their heads are buried in their smartphones. Parents must model good driving behaviour for their children, as what they see behind the wheel is often what they will become.
Adding New Drivers to Parents’ Insurance Policies
Adding a new driver to a parent’s existing car insurance policy is a useful way of doing things if they don’t have their own car. This will typically cost less than if the policy was in their own name and also comes with the added bonus that they know they need to be extra careful driving mum or dad’s car
On the flip side, parents and the new driver might start to get frustrated with having to share the car all the time, and it could be a risk to have a new driver behind the wheel of the family’s only vehicle.
Conclusion
Passing your test and getting your first car is an important right of passage for any young person, but it can be a joy that is easily checked when they begin looking into car insurance. There’s no way around it: new drivers will face high premiums for the first couple of years, but after that, with a solid no-claims bonus behind you may see better premiums each year.
At 123.ie we provide excellent car insurance products for new drivers that aim to balance the need to keep things financially reasonable and ensure quality coverage to suit every requirement and circumstance. For personalised quotes or further information, get a quote online, or feel free to call us on 01 518 1403.
