Car Insurance for Young Drivers: Everything You Need to Know

Applying for your first car insurance policy can seem daunting – especially when you see the price. We’ve broken down the different types of car insurance to help you choose the correct level of cover for the best value. We also explain how telematics insurance works and why it’s fast becoming the preferred option for young drivers seeking affordable car insurance.

Applying for First Car Insurance –  Checklist

Before you apply for first car insurance policy you must have the following:

  • A valid learner permit / full drivers licence
  • Completed 12 lessons with an approved driving instructor
  • The make, model and registration of the vehicle you’re insuring
  • The log book proving ownership of the vehicle you’re insuring

Tip: Read our Tips For Passing The Irish Driving Test and our Guide to Buying Your First Car

Types of Car Insurance Policies

By law, to drive a car in Ireland, you’re required to hold car insurance. Deciding which level of car insurance is right for you can be tricky so we’ve broken down the three main types:

Third Party Insurance

Third party insurance covers the damage caused to a third party, but not your own vehicle. It’s the lowest level of cover and sometimes can work out as the cheapest type of cover too. Not many insurance companies offer third party insurance as its cover is minimal.

Although third party insurance is usually the cheapest option, it should only be used for drivers with older / low value vehicles. The main thing to consider is whether you would replace or repair your car if you were in an accident – if it would be cheaper to replace the car then third party cover might be for you.

Third Party Fire & Theft Insurance

Third party fire and theft insurance covers the damage caused to a third party if you’re involved in a collision while also insuring you if your car is damaged by a fire or stolen. Though slightly more expensive than third party only cover, third party fire and theft is more widely available from insurance companies and is usually the most cost-effective option for drivers.

This level of cover is suited to less experienced drivers who may be driving an older, less valuable vehicle or drivers who have a low annual mileage. In these cases, it’s usually cheaper to replace the vehicle in the event of an accident.

Comprehensive Insurance

Comprehensive car insurance includes the same level of insurance as third-party fire and theft, while also covering the damages caused to your own vehicle.

Comprehensive insurance is usually the most expensive option as it provides the highest level of cover. However, it’s always worth getting a quote for each type of insurance. When you compare the benefits of both, the difference in cost may be minimal compared to the increased level of cover. Drivers with new or high value vehicles should take out comprehensive cover.

Depending on your insurer, comprehensive cover usually comes with extra benefits. These might include:

  • Windscreen protection
  • Breakdown assistance
  • Car hire cover

How do I know which level of insurance is right for me?

When choosing a type of cover the main things to consider are:

  • Value and year of the vehicle
  • Driving experience
  • Cost

Get a car insurance quote and read the policy details in full before deciding.

Factors that influence the cost of insurance:

  • Age
  • Location
  • Experience
  • Profession
  • Vehicle age

Car Insurance for Young Drivers: Telematics Insurance

Typically, car insurance for young drivers is more expensive as you have a higher risk of being involved in a road accident. Some insurance companies have created specialised products to provide young drivers with good value and affordable car insurance. One such product is AIG’s BoxClever telematics insurance.

With a telematics policy, a box is fitted into your car that reports information regarding your driving back to your insurance company. Your driving is monitored for safeness using GPS and an accelerometer and each month the insurance company will provide you with a safe driving score.

The data recorded by the telematics box includes:

  • Total speed
  • The smoothness of accelerations / decelerations
  • The sharpness of turns
  • Time of day
  • Length of journeys
  • Regularity
  • Total mileage

When purchasing a telematics insurance policy, you choose the amount of kilometres you plan to be driving. Safe driving will be rewarded with more kilometres and better rates for insurance.

At AIG we reward good drivers with good rates – no matter how young you are. Talk to us today about our AIG BoxClever policy and get ready to turn your safe driving into savings.


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