MOTORING NEWS - It's every young person's dream and every parent's nightmare - when our sons and daughters get the keys to their very first set of wheels.
Besides the nostalgia, stress and worry surrounding your child's independence, there are important issues of safety and insurance costs that go hand in hand with being a young and inexperienced driver.
There are, however, ways to better manage the risks that come with driver inexperience and the resulting higher premium costs. Mandy Barrett of Aon South Africa, insurance brokerage and risk advisors, offers some important pointers on the do's and don'ts of motor insurance for young drivers:
DO
Check the terms and conditions of your insurance cover. If you have an open driver policy, you will be covered for anyone who holds a drivers license and drives the vehicle with your permission. However, if the cover is on a nominated driver basis, make sure to notify your broker and add your child as a nominated driver on your insurance policy.
Telematics is a young driver's best friend when it comes to building a track record and profile with an insurer. More insurers are using the data and analytics derived from telematics to develop risk rating profiles based on individual driving behaviour.
Comprehensive motor insurance is the widest level of motor insurance cover available, covering accidental damage to your vehicle in addition to third party, fire and theft. If you have an accident, even if it was your fault, you can claim the cost of repairing your car and any other damage you may cause to a third party. It is important to check your policy as some insurers design basic comprehensive cover and you may then need to 'buy up' for additional cover and services such as towing fees, hail damage, roadside assistance and so on.
Adhere to the provisions of your insurance cover - make sure any security requirements are adhered to such as a tracking system, immobiliser and that the vehicle is parked in a safe and locked premises at night. Remember that when a tracking device is a requirement, part of the requirement is that the tracking subscription is maintained.
DON'T
Some insurers offer the promise of low premiums and while these premiums may be cheaper, the catch comes in on having to pay a very high excess in the event of a claim. Consider this example - on her vehicle worth R150 000, Sue gets a lower premium rate of R428 per month, on the proviso that she accepts a basic excess of 25% of the retail value of her car. That means, should anything go wrong and Sue needs to claim for damages or theft of the vehicle, she will be liable for the first amount or excess of R37 500.
Don't buy a high-powered, expensive first car. We see parents buying their children expensive and high-powered vehicles, which is always a concern as they don't have the experience to handle the power and the speed. Insurers will look at this power to weight ratio when insuring the vehicle and driver. Safety and reliability should be a primary consideration.
"When it comes to insurance for an inexperienced driver, consider additional personal liability top up cover, given the risk of major claims in the event of an accident or incident where the young driver is proven to be negligent," urges Mandy.
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