
- AMI treats young drivers like good drivers straight away with at least a 50% no-claims bonus.
- Take out Renters Insurance too and get a Student Multisaver discount.
- Agreed value comprehensive, third party fire and theft, or third party only cover.
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Congratulations, your child has passed the learner licence theory test and is ready to get behind the wheel. You now need to learner-proof your car before they can start driving. The first step is to make sure they know the unspoken road rules (all other drivers are crazy!) The second is to make sure your car insurance is ready to cover your learner driver without costing you too much.
To make insurance easier, many providers automatically cover learner drivers on their parents’ policies. However, you typically need to pay an additional excess for claims made as a result of them being behind the wheel.
When your child gets behind the wheel, the excesses can quickly add up. If you’re not careful, they might become unaffordable, and prevent you from making a claim. Listing the learner driver on your policy will generally help keep the price down, at the cost of a higher premium. Depending on your needs, reducing the excess and offsetting the L-plate premium increase with discounts may be the way to go.
Check your product disclosure statement (PDS) for the following:
It’s usually preferable to change insurers at renewal time, but if you do want to switch mid-policy, plan ahead of time.
It’s relatively simple. You can usually:
As we touched on above, it’s usually cheaper to add a learner driver to a current policy rather than taking out one in their name, which is due to a few facts:
There’s really only one situation in which it’s worth it to pick up a separate policy for the learner, and that’s if they have their own car and plan to drive it. Whatever you do, don’t insure their car in your name if they’re going to be driving it more than you are. That is called car insurance fronting and is considered fraud.
In the end, it makes more sense to hold off on buying them their own car until they are experienced enough for their premiums to come down. Your policy will most likely cover them for free anyway, so there’s not much to lose. If they get into an accident, you’ll have to pay an additional young or inexperienced driver excess but that potential charge is better than definitely having to pay high premiums month after month.
Want to lower your car insurance premium? Remember a few simple tips:
To get your L plates, you need to complete a computer-based road rules knowledge test. You can find details for the information included in the test in the road code handbook, which is available from the New Zealand Transport Agency or bookshops, and you can even complete sample tests online.
Learners need to have held their licence for at least six months before they take the restricted licence. To be granted your restricted licence you need to successfully pass the restricted licence practical test, in a car provided by you, which is designed to determine if your skills are at a level where you can safely drive without a supervisor under certain conditions.
There are restrictions imposed on learner and restricted drivers, so make sure you check out the NZ Transport Agency website and are fully aware of what you can and can’t do on the road before getting behind the wheel.
To supervise a learner driver, you must:
Teaching a teenager how to drive can be a frustrating and frightening experience for any parent. However, with at least six months of driving supervision in front of you, it’s a good idea to prepare for what lies ahead. Remember these simple tips to make the learning process as smooth as possible:
Using a driving school allows you to learn from a professional driving instructor, and acquire the skills and confidence you need to become a safe and competent driver.
Before choosing a driving school, make sure you’re aware of the following:
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