Buying car insurance is an important step for any new driver. Whether you have just passed your test or are still taking driving lessons, it is important to understand how insurance works before you get behind the wheel.
One part of insurance that often confuses is the excess payment. Many young drivers focus on the cost of their insurance premiums but do not pay enough attention to the excess. Understanding this cost can help you make better decisions and avoid expensive surprises if you are involved in an accident.
What Is an Insurance Excess?
An insurance excess is the amount of money you agree to pay towards a claim before your insurance company covers the rest.
For example, imagine you are involved in an accident, and your vehicle needs $5,000 worth of repairs. If your excess is $1,000, you would pay the first $1,000, and the insurer would pay the remaining $4,000.
The excess is usually paid when you make a claim, not when you buy the insurance policy.
Why Do New Drivers Often Pay Higher Excesses?
Insurance companies see new drivers as a higher risk than experienced drivers. This is because drivers who have recently gained their licence are statistically more likely to be involved in accidents.
As a result, insurers often charge the following:
Higher insurance premiums
Higher excess amounts
Additional age-related excesses
In Brisbane and across Queensland, many young drivers discover that their excess can be several hundred or even thousands of dollars, especially if they are under 25 years old.
Different Types of Excess
Many people think there is only one excess, but some insurance policies include multiple excess charges.
Standard Excess
This is the basic excess listed in your insurance policy.
Age Excess
Some insurers charge an additional excess if the driver is below a certain age, often under 25.
Inexperienced Driver Excess
This may apply if the driver has held their licence for only a short period.
Unlisted Driver Excess
Some policies charge an extra fee if the person driving the vehicle is not listed on the policy.
Before choosing insurance, always read the policy carefully so you understand exactly what costs could apply after an accident.
How Excess Affects Your Insurance Premium
There is often a trade-off between your excess and your premium.
A higher excess usually means the following:
Lower monthly or annual insurance payments
Higher costs if you need to make a claim
A lower excess usually means the following:
Higher insurance premiums
Lower out-of-pocket costs after an accident
For young drivers on a budget, a lower premium can seem attractive. However, it is important to ask yourself whether you could actually afford the excess if something went wrong.
Why Safe Driving Matters
The best way to avoid paying an excess is to avoid making insurance claims whenever possible.
This is where quality driver's education becomes important. Learning good driving habits early can reduce the chances of being involved in a crash.
Many students who complete professional behind-the-wheel training develop stronger hazard awareness, better observation skills, and greater confidence on the road. These skills can help drivers recognise risks before they become accidents.
At No Yelling Driving School, the goal is not simply to help students pass a test. The focus is on helping learners build lifelong driving skills that improve safety and confidence.
Common Mistakes That Lead to Insurance Claims
New drivers often make similar mistakes during their first few years on the road.
Some common examples include:
Following other vehicles too closely
Failing to check blind spots
Misjudging gaps in traffic
Parking accidents
Driving too fast in wet conditions
Brisbane's sudden storms can create slippery roads and reduced visibility. Drivers who are not prepared for these conditions may be more likely to have an accident.
Good habits learned during driving lessons can help reduce these risks and improve overall road safety.
Questions to Ask Before Choosing Insurance
Before purchasing a policy, new drivers should ask:
What is the standard excess?
Is there an age excess?
Is there an inexperienced driver excess?
What happens if another person drives my car?
Can I afford the excess if I need to make a claim?
Are there discounts for safe drivers?
Taking time to compare policies can save money and help you choose coverage that suits your needs.
Building Confidence Through Education
Many insurance claims involving new drivers are linked to inexperience rather than intentional risk-taking. This is why ongoing learning is so valuable.
Working with professional driving instructors allows learners to practise real-world situations in a safe environment. From busy Brisbane intersections to motorway driving and parking challenges, experience helps drivers make better decisions under pressure.
The more prepared a driver feels, the more likely they are to stay calm, avoid mistakes, and reduce their chances of facing costly insurance claims.
