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Youngest Driver and Your Obligations

Driver age is an important risk factor

When you buy your greenslip, you must usually advise the age of the youngest driver of your vehicle.

If there is only one driver, they are the youngest driver.

Driver age is a factor that insurers use to assess risk and determine the price they will charge for CTP green slips. If the youngest driver is a learner driver, you are still obliged to advise the insurer.

If you do not advise the insurer:

  • The fact the correct premium has not been paid on a greenslip does not affect the validity or operation of that greenslip.
  • If an incorrect greenslip premium has been paid, insurers are entitled to claim the difference between what was paid and what should have been paid.
  • If there is a claim on a greenslip and the person who purchased the greenslip avoided paying the correct premium by making a statement which they knew was false, the insurer may claim up to $5,000* ($2,000 under the 1999 Act) from that person.

* Under the Motor Accidents Injuries Act 2017.

Why are green slips more expensive for younger drivers?

The main reason green slips are more expensive for younger drivers is because they are more likely to be involved in a road accident. Young people tend to take more risks, such as speeding or driving too close to the vehicle in front.

  • L-plate drivers are among the safest because they are under supervision.
  • P1-plate drivers are only 3% of all drivers but represent 20% of deaths and die at twice the rate of all drivers.
  • The first month of driving with P-plates is the riskiest time.

Young drivers are covered by the green slip of the vehicle they are driving, provided the vehicle registration is up to date. If they are involved in a collision, the price of the green slip may increase.

Comprehensive insurance can also be affected by having a younger driver:

  • Young drivers may not be included in comprehensive insurance of the vehicle they drive.
  • If they are covered by comprehensive insurance, a higher age-based excess may apply.
  • Check for other comprehensive insurance terms and restrictions that may apply to younger drivers.

How to reduce younger driver premiums

Younger drivers usually want to reduce their premiums as much as possible.

Primary factors used by insurers that affect greenslip prices are:

  • Geographic region
  • Type and age of vehicle
  • Age and gender of vehicle owner and driver
  • Driving history (offences, demerit points, years licensed)
  • Claims history (other insurance held, at-fault claims).

Young people cannot help being young, but can be encouraged to drive a safer vehicle. They can also work towards a clean driving history with no offences, loss of demerit points, or insurance claims.

Safer Drivers Course

The Safer Drivers Course is one way to improve L-plater driving. The aim is to equip learners with the skills and knowledge to prepare them for P-Plates. It combines theory and practice for learner drivers under 25 who have completed 50 logbook hours, including night driving.

The course has two modules to complete within one month:

  1. A 3-hour group discussion with other L-platers about how to manage risks on the road.
  2. A 2-hour in-vehicle session with a coach and another L-plater to learn practical, safe driving.

The course gives learners a bonus of 20 hours of logbook credit so they need only 100 more hours of supervised driving to progress to P1 plates.

Call 13 2213 or find the closest course provider.

FAQs

1. Does CTP insurance cover learner drivers?

Yes, CTP insurance covers learner drivers as long as they drive a registered vehicle. Some insurers will ask whether there is a learner driver on your CTP green slip. Usually, learners are considered to be safer than those on P plates because they are still under supervision.

2. Do young drivers need to be listed on my green slip?

Yes, you must tell insurers the age and experience of the youngest driver of your vehicle. Insurers use driver age as an important risk factor and it will affect the price of your green slip. If you do not tell the insurer and a young driver has a road accident, the green slip is still valid but you may have to pay a penalty.

3. Does age affect green slip?

Yes, age affects your green slip. A younger driver pays more for a green slip because they are higher risk than a more experienced driver. While P1 drivers are only 3% of all drivers, they make up 20% of all deaths in road accidents. The first month of driving with P plates is the riskiest time.

4. How does Safer Drivers Course work?

The Safer Drivers Course is a course for learners under 25 to prepare them for P plates. They need to have completed 50 logbook hours, including night driving. The course adds a bonus of 20 logbook hours. This means learners need only 100 more hours of supervised driving to get their P1 plates. Call 13 2213 or find the closest course provider.

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