Young Drivers


 

Young drivers - particularly those under 25 - pay a higher premium because statistics show that they’re more likely to be involved in accidents. In fact they are 3 to 5 times more likely to have an accident then someone who has 8 years or more driving experience. Furthermore the accidents they cause tend to be more serious and therefore more costly.


To reduce the insurance premium it might be tempting to use your parents’ car insurance and to be a named driver on their policy. This requires that the vehicle be registered in the parent’s name. There is nothing incorrect in this but the problem is that in this manner you do not earn a No Claims Discount in your name, since NCD is not transferable from one person to another. Thus when you come to issue a policy in your name you will start from 0% NCD.

It is better if young drivers go for low powered and low value cars that are insured in their own name. This reduces the risk of a serious accident substantially. Furthermore, in this way they can pay a reasonable premium while getting full protection, and at the same time earn an NCD.

Keep in mind that you may be refused insurance or be required to pay a heavily loaded premium if you drive a high-powered vehicle or if you register a serious claim or a number of small of claims in a short period of time.

 

This article is for information puposes only and was brought to you GasanMamo Insurance Limited which is authorised to carry on business of insurance in Malta in terms of the Insurance Business Act 1998, regulated by the Malta Financial Services Authority. Company Registration Number: C3143

Head Office : GasanMamo Insurance Ltd, Msida Road Gzira Malta. Click here  to view a map and visit their head office, branches and other tied insurance intermediaries locations.