There is a real excitement when you start driving for the first time. Suddenly, you are at liberty to go wherever you want, whenever you want.
But what would happen if your motor vehicle was damaged, or stolen? All that new found freedom would be lost instantly, and you would have to start from scratch to save up for a set of wheels.
This is why having the right insurance policy is so important. When your motor vehicle is covered, you can relax in the knowledge that your insurer will help you out if something bad happens.
Here are four tips for young drivers in Papua New Guinea looking to buy the best policy:
1. Understand the different types of motor vehicle insurance
There are three types of cover you need to understand with motor vehicles:
- Third party – This is the cheapest, but there are limitations. With third party cover you are protected if you cause an accident that leads to damage to someone's property, or injures them. However, you would still have to pay for repairs to your own vehicle. Third party also does not cover theft or fire damage.
- Third party fire and theft – This is basically the same as third party cover, but also protects you if your car is damaged in a fire or stolen. If either of these things happened, your insurer would help reimburse you the value lost.
- Fully comprehensive – This is the highest level of coverage, and protects both you and anyone else involved. It also includes fire and theft.
With this information in mind, it can be tempting simply to choose third party because it is the cheapest. While this could be the right option, you should thinkg about the future. You should consider whether you want to invest a little more for a superior level of protection that could save you a lot of kina in the future.
2. Consider multi-vehicle policies
Remaining as a named driver on your parents' existing policy is a great way to save money. Being a named driver means that you are insured on a vehicle that is driven more frequently by someone else than you – for example your mother or father. When you are driving this vehicle, you have the same level of cover as they would.
This option is usually only open when your parent is the legal owner of the vehicle, so if you are a young driver searching for motor vehicle insurance on a vehicle that you personally own, this will not work.
A mutli-vehicle policy, however, is different. In this scenario you can add multiple vehicles to one policy, usually at a cheaper price than insuring each one separately. Here what is important is that all the cars are registered at the same address, with legal ownership mattering less than with named driver policies.
3. Do not modify your vehicle
While it may be tempting to personalise your vehicle to make it stand out from the crowd, this will often make insurance more expensive.
Adding new alloy wheels or tuning the engine differently, among other things, count as modifications to your vehicle – in fact anything that changes it from the original factory specification does.
The only changes that are not likely to affect your insurance are adding safety features, but even then you should declare any such modifications to your chosen insurer before you buy a policy.
4. Be honest with your insurer
This brings us on to our next point. When you talk to insurers about buying a policy in Papua New Guinea they will ask you a number of questions, including:
- Details about your vehicle – Including the modifications we mentioned earlier.
- Details about your past driving history – For example, if you have been involved in any accidents.
- If anyone else is likely to drive your car – This could include friends or siblings.
- Where your car is stored when not in use – You might store your car in a garage, or on the street.
Perhaps it seems like you could lie to your insurer to get cheaper cover, for example if you have had an accident recently. However, if you do this and then have a problem such as a collision or theft, your insurance might not be valid. It is always worth being totally honest with an insurer, and then they can help you find the best policy for you.
At Trans Pacific Assurance Limited (TPAL) we understand that motor vehicle insurance can seem complicated and expensive. We are here to listen to what you are looking for and match our cover to that. For more information, or to get a quote, get in touch with our team today.