Must-Read for P-License Plates | P-License Plate Car Insurance Guidelines
After obtaining their driver's license, most people want to immediately buy their dream car and enjoy driving on the highway. Becoming a new car owner is certainly exciting, but remember to be fully prepared before driving your first car – purchase appropriate new vehicle insurance!
Is it harder to buy car insurance if you have a P license plate?
Data shows that young and novice drivers are more prone to traffic accidents and traffic violations. Therefore, drivers under 25 years old or holding a P license are often considered to have less driving experience, and not every insurance company is willing to underwrite them. In this case, they will need to pay higher premiums and deductibles. P license holders should be prepared that it may be more difficult for new license holders to purchase insurance. Therefore, new license holders should consider the following factors when choosing an insurance plan:
Premium Amount
Car insurance coverage and terms
Which is more suitable for me: "Triple Coverage" or "Comprehensive Coverage"?
The difference between "Three Guarantees" and "Full Guarantee"
Both new car insurance and regular car insurance come in two types, with the biggest difference being the scope of coverage: The first type is "third-party liability insurance," commonly known as "three-insurance." According to the Motor Insurance (Third-Party Liability) Ordinance, all car users must purchase "three-insurance" to compensate for personal injury and property loss to third parties other than the policyholder. The second type is "comprehensive car insurance," commonly known as "full coverage." In addition to the coverage of "three-insurance," "comprehensive coverage" also compensates for losses to the vehicle caused by natural disasters, traffic accidents, and theft
In the unfortunate event of a car accident, "comprehensive insurance" will cover medical expenses, vehicle repair costs, etc., while "three-insurance" will not cover these expenses. It is worth noting that regardless of whether you choose "three-insurance" or "comprehensive insurance," car owners will usually have to pay a "deposit" before the insurance company will reimburse the remaining amount
Whether to buy "three-insurance" or "comprehensive insurance" depends entirely on your affordability, the price of your car, and the coverage you need. New car owners often buy cheaper used cars, so "three-insurance" might be a more cost-effective option. However, if you're buying a new car or a more expensive model and want more comprehensive coverage, "comprehensive insurance" might be more suitable
New Brand Insurance Premiums and Promotional Offers
Because new car owners typically have less driving skill and risk assessment experience, insurance companies often perceive them as higher risk. Furthermore, they lack NCB/NCD (No Claims Bonus/Discount) benefits, meaning they don't receive premium discounts, resulting in higher insurance costs. Insurance companies also determine premiums for new car owners based on various factors, such as vehicle model, style, age, and safety features. Considering the following points before buying a car can help reduce insurance premiums:
Cars with smaller engines have a lower chance of accidents compared to cars with higher horsepower, resulting in lower insurance premiums
Vehicles with good accident records have a lower risk of accidents, and therefore lower insurance premiums
For younger vehicles: Generally, the younger the vehicle, the cheaper the insurance premium. For example, the insurance premium for a 2019 vehicle is usually cheaper than that for a 2005 vehicle. Therefore, a used car is a good option if you want to reduce your insurance premium
Insurance Precautions
It's understandable for new car owners to want to save on insurance premiums. Some owners of P-plate vehicles transfer their cars to family members with more driving experience and then add themselves as the registered driver to avoid paying extra premiums. If you do this, remember to register the driver accurately when using the car under someone else's name. Otherwise, you are violating the policy terms, and you will not receive any compensation in the event of an accident. The policy will also be cancelled immediately
To avoid the above risks, it is recommended that P-plate drivers purchase car insurance through the normal channels and start accumulating "No Claim Bonus" (NCB/NCD) as early as possible. As long as the driver does not make any claims to the insurance company within one year of the policy's inception, they will enjoy a discount upon renewal. For details, please refer to our article introducingNCB. Car owners should weigh their financial capabilities and risks to choose the most suitable new license plate insurance plan.
P-license holders enjoy premium discounts when renewing their insurance after one year!
It's normal for new drivers with P-plate licenses to be unfamiliar with insurance options and wonder which insurance company is best. However, by seeking professional assistance and carefully comparing different plans, you can enjoy driving without worry. With a wide variety of insurance plans available, AWM's car insurancequote servicemakes it easy to compare prices. Industry professionals are also available to answer any policy-related questions, providing you with the most comprehensive analysis before deciding on a car insurance company.