Car Insurance for Young Drivers
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What is Young Drivers' Car Insurance?
Car insurance for young drivers is an insurance policy that is specifically meant for teenage car drivers. It is similar to a traditional auto insurance policy. The only difference here is the age of the policyholder.
Separate car insurance for new drivers is essential if your 18 to 25 years old son or daughter owns and drives a car and has a year of driving experience. Even if they drive your insured vehicle, you will be required to bear the cost of 10% of the expenses in the event of an accident.
What Type of Insurance Do Young Drivers Need?
These three categories of protection should be included in young drivers’ insurance:
A third-party cover is the most basic and compulsory insurance for every driver. It covers the loss or damage to another person's life or property caused by your driving.
Fire & Theft Insurance
This policy covers the loss due to theft or fire accidents.
Fully Comprehensive Car Insurance
This policy provides comprehensive coverage. Apart from third-party claims, it gives complete protection to the driver and his car. A comprehensive policy offers best insurance for young drivers.
Why is Young Drivers Insurance So Expensive?
Surveys & statistics show that young drivers have a higher probability of meeting an accident than experienced drivers.
Lack of adequate driving experience makes it difficult for teenagers to respond effectively in emergency situations. Higher accidents increase the risk for insurers.
Car insurance for young drivers may not be eligible for various discounts and bonuses if the policy is new and purchased recently.
Youngsters are less cautious while driving as they are primarily single with no dependents. Insurers levy a higher premium to compensate for this special risk factor.
Failure to use seatbelts while driving leads to higher fatalities in accidents
Distractions such as music, mobile phones, and friends are higher among youngsters. This is the most significant cause of road accidents in the UAE. This results in a higher premium for young drivers’ insurance
Certain lifestyle habits of teenagers also result in higher risk and higher premiums for this product.
How Can You Reduce the Cost of Teenage Car Insurance?
Buy a single premium insurance policy and pay the entire premium in a lump sum. Most insurers in the UAE offer attractive discounts if you pay a lump sum premium.
Conduct proper market research. Compare the quotes of several insurance companies to get the best car insurance for young drivers.
Enroll your teenage children in an excellent driving course and get them trained by professionals. Certifications and on-road driving experience help to reduce insurance premiums.
Buy an old car as the premiums are much lower compared to the new wheels. Repairs and replacements are also much easier for older models.
Lesser time on the road translates to lower premiums. The insurers also check the annual mileage figure to quote the premium on the teenage car insurance policy.
Speeding fines & penalties can shoot up the premium. Guide your children to drive safely and diligently follow the traffic regulations.
A clean record helps you get the best quotes from the insurers. Past accidents, claims, and convictions make it more expensive to get insurance coverage in the future.
What Happens if You Don't Have Teenage Car Insurance?
You can include your teenagers in your auto insurance policy if they use your car. But they have to get a separate insurance plan once they get a license and start driving their own cars.
Teenagers and young drivers are generally categorized as high-risk drivers. So driving without proper insurance can lead to suspension or revocation of their license. This can lead to exorbitant premiums in the future or a blanket refusal by insurers to provide coverage to them.
A comprehensive car insurance plan provides the best car insurance for young drivers. Apart from third-party claims, this policy also protects the teenage driver and the car.
Frequently Asked Questions on Insurance for Young Drivers
It can be quite expensive to add a young driver to your existing auto insurance policy. According to the Insurance Information Institute, the premium can shoot up by 50-100%. If the child owns the vehicle and has a driving license, it is better to get separate car insurance for young drivers.
Under UAE laws, it is mandatory to get third-party insurance coverage for both teens & adults. The other covers for new driver insurance, such as theft, own damage, etc., are optional.
Insurance policies are generally issued for 12 months. But under UAE laws, it is mandatory to have valid car insurance at all times. The additional one month is the grace period provided to renew your car insurance.
A valid driving license is required to obtain a young driver’s car insurance in UAE. The minimum age requirement to obtain a driving license for cars is 18 years.
Disclaimer: It is important to carefully review policy documents to understand the terms and conditions that apply to the policy you purchased, and ensure that it meets your specific needs and requirements.