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Car Insurance for under 25s

If you are looking for Car Insurance and you are not yet 25 years of age, you will soon discover that your age is a major factor in your risk profile, and that insurance providers classify you as a higher risk when they calculate your monthly premium.

Before we discuss the different type of Car Insurance available for drivers under the age of 25, it’s probably best if we explain why it is that drivers under the age of 25 pay more to insure their cars.

Why do I pay more for Car Insurance when I’m younger than 25?

Simply put, it’s about your risk profile when you are between the ages of 18 (legal age to obtain a valid driver’s licence in South Africa) and 25.

Young drivers are considered high risk due to their inexperience behind the wheel. The idea that you have to pay more for Car Insurance because of your age may seem unfair. You may have just started studying, working, or you may have just bought your first car and funds are tight. The fact is, it's almost impossible and highly unlikely that you can get around these higher calculated premium costs until your friends and family have sung the famous birthday song and you have blown out the candles on your 25th birthday cake.

A major factor in assessing a risk profile and calculating premiums, by the insurance provider, is defined by who the regular driver of the vehicle will be, so you might be tempted to put your Car Insurance in your parent's name, however, Car Insurance companies do ask who will be driving the car most often. So it's likely that this route will not alleviate costs and can cause major difficulty if you need to put in a claim.

The different types of Car Insurance available for under 25s

  • Comprehensive Car Insurance offers extensive cover if your car has been stolen, hijacked, damaged in an accident or during a natural disaster.
  • Third-Party, Fire and Theft Car Insurance has less benefits than Comprehensive Car Insurance as it only covers your car when damaged by fire, theft and third party damages.
  • Third-Party Only Car Insurance is the most basic form of Car Insurance, and only provides cover for any damage you may have caused to another person's vehicle and/or persons injured in the event of an accident. Your car is not covered, and the cost of the repairs will be for your account.

Cheap Car Insurance for the under 25s

Age and experience are a major challenge for getting cheap Car Insurance for the under 25s. Many people who are under 25 have left home and can no longer be insured under their parent's insurance policy. They may still be in college, so are under the added pressure of not having a lot of money for insurance. Some people might be tempted to simply not have Car Insurance, but this can have dire consequences if you get into an accident.

However, all is not lost. There are some things you can do to get more affordable Car Insurance if you're under the age of 25. One way to lower insurance rates is to participate in safe driving courses offered through many insurance providers. These classes teach you how to react appropriately when faced with unexpected events on the road. You will learn to drive on wet surfaces, respond when your car hydroplanes, and react when you hit an area of a road that makes your car spin. There are many techniques for keeping a car under control when an emergency arises and these schools teach you all of the techniques. Once the class is completed, you will receive a certificate which will lower their insurance rate and this will greatly assist you when you are looking for cheap Car Insurance for the under 25s.

The type of car that you drive will affect cheap Car Insurance for under 25s. It's important to drive a car that has high safety ratings when you are in this age group. The safer the car the cheaper the insurance premium will be on that car. A sports car is expensive to insure even if you're a seasoned driver and of advanced age. While a car with a high safety rating may not "look" like a sports car, it will bring the insurance rates down significantly.


Third party, fire and theft

Third-party, Fire and Theft cover falls between comprehensive and limited liability. This type of insurance is an option if the vehicle is older, paid off and is not worth much.

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