Getting a car after high school is every student’s dream. It may be your Mom”s old clunker or a 20 year old used car you bought with your hard earned money but you will always love your first car irrespective of the condition. Maintaining a car is not cheap and car insurance is one of the necessities you need to factor into your monthly budget. Student car insurance does not exist as a standalone policy and you more likely are looking at under 25 car insurance specifically. But before you sign up for student car insurance cover, read the policy carefully so as to avoid a huge dent in your pocket at a later stage.

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Cost and Excess

The price factor is always a major consideration when looking for student car insurance, especially when you are on a tight budget and working part time evening and weekend jobs. The cost of student car insurance is not different from the rates for under 25 car insurance. You will be paying a higher monthly premium due to your age. Drivers under the age of 25 years are considered to be a higher risk group than older drivers. So expect to be penalised to some extent due to your age.

The car insurance excess at the time of a claim is also higher for younger drivers. First you have to pay the excess as agreed upon at the time of signing up for the student car insurance policy. This is either a flat rate of a few thousand rand, usually lower if you are only claiming for windscreen damage alone, or it may be a percentage of the claim value. Secondly there is a separate excess, which is more of a penalty, for being a driver under 25. This is also payable with the regular excess at the time of a claim.

Saving Tips for Student Car Insurance

Unfortunately there are few options if you are looking at savings on your student car insurance. It is not just about buying cheap car insurance because with these policies you get what you pay for – lower premiums means lesser benefits. Saving on student car insurance means exploring options that may not be open to every young driver. It is always helpful to speak to a short term insurance broker about the best way to save on your student car insurance cover. Here are three helpful tips that you should consider in South Africa.

Tip 1 – Vehicle Owner

If the car is on your parents’ name then it may be better to leave it that way. As an older person, your mother or father will qualify for cheaper car insurance. Nevertheless there will still be the additional insurance excess at the time of a claim if you, as an under 25 driver, was behind the wheel during the accident. It is important to notify the car insurance provider that you will be driving the car on a regular basis and be a nominated driver on the policy. Remember that only the owner of the car can apply for motor vehicle insurance.

Tip 2 – Car and Home Cover

You may find some savings by combining car insurance cover with household cover. Motor vehicle and house insurance is not only available for home owners. You can be renting an apartment or living with your parents but still insure the household contents, even if it is only your possessions. It may only be cover for your clothes, a few items of jewellery, your TV or hi-fi system but these possessions can be covered with household contents. By combining it with car insurance you may be able to save a little on a joint policy.

Tip 3 – Parking and Security

Parking your car in a lock-up garage at night within a fenced property can help you save on your student car insurance premiums. Providers take this into considering when pricing your policy as vehicle theft more often occurs at night and on public roads. Furthermore it is worth paying a little extra for a good security system for your car. An alarm alone is not sufficient. Look at motion sensors and an immobiliser. Also speak to your provider about satellite tracking car insurance savings. The cost of monthly satellite tracking is often offset from your car insurance premiums giving you the additional satellite benefit at no extra cost.

Tip 3 – Type of Policy

Lastly you should look at your car insurance options carefully. While comprehensive car insurance has the best benefits, it is the most expensive cover. Consider basic car insurance with third party and loss of vehicle cover or go even cheaper with third party car insurance on its own. Make sure you understand the implications of opting for these policies. While you may be covered for the damage sustained to the other vehicle, the insurance provider will not pay out for accident damage repairs to your car. Student car insurance for females may also be slightly cheaper with some providers catering for insurance for women who are considered to be a lower risk group.