“How do I keep my car insurance premium down?”, is probably one of the most frequently asked questions for any parent wanting to include their child as a young driver on an existing or renewing motor insurance policy. As parents, by including your child on your policy, you are likely to see your premiums nearly double! But for the young driver, this approach may be seen as a cheaper option than getting insured independently after qualifying to drive on the road.
To help lessen your worries and provide you with some options, Kwiksure has compiled a few useful tips that you may want to consider trying to secure the best and most affordable car insurance policy in Hong Kong.
1. Talk to your current car insurance company
Before you consider looking elsewhere, you may be better off contacting your car insurance company and requesting for more information on what to do when wanting to include your child on your policy.
Your car insurance company may appreciate your query and offer you further information, including tips from them that can help you reduce your premiums. If you have been a loyal customer for many years then they may offer packages or deals that are tailored to your needs.
As always, it is important to be clear and honest about what you need. Check any new terms and conditions and provide evidence on the young driver’s part to back up any request you have. Car insurance companies work on past and existing records so work closely with them is the best piece of advice here.
2. Take advantage of your No Claims Discount (NCD)
As you are most likely aware, car insurers normally offer NCD to drivers who remain claim-free for a particular period of time. The discount is usually applied upon renewal, and the benefit builds up the longer a driver goes without making a claim. Below is a rough breakdown of how insurers usually structure their NCDs for private vehicles in Hong Kong:
- 20% NCD for 1 year of claims free driving
- 30% NCD for 2 years of claims free driving
- 40% NCD for 3 years of claims free driving
- 50% NCD for 4 years of claims free driving
- 60% NCD for 5 years of claims free driving
As shown above, the maximum amount of NCD that you are allowed is 60%, representing 5 years of claim-free driving. Therefore, when choosing an insurer, to begin with, it is recommended to request the rates that your insurer will use.
3. Shop around for a policy that works for you and the young driver
If the first tip doesn’t apply and you can’t get the satisfaction you need, then pursuing other insurers and checking the market would be the next best piece of advice. Generally, searching online can be quick and efficient and getting in contact with a representative can be relatively easy. However, the car insurance market is a very saturated and competitive market and choosing a policy that is tailored to you and your child can be quite complex and laborious - if you are unsure of what you are looking for.
It is best to use comparison sites or to speak to a motor insurance specialist such as Kwiksure that can help, simplify, compare, and deliver affordable policies.
4. Consider paying a higher excess
As with all quotes for a car insurance policy, you will be asked to decide the level of excess. To help remind you, the ‘excess’ is a voluntary amount you are happy to pay towards repairs and damages in the event of a claim. It can also go by the term ‘deductible’. So if you adjust for a higher excess, your premium will be lower, and vice versa. Be warned that agreeing on a higher access does means you are confident that you’ll be able to afford to pay the excess if you need to.
5. Pay per year, not per month
If you can afford it, then paying the annual insurance premium will definitely save you money when getting a younger driver added to your policy. You’ll avoid paying the monthly interest charges that could add up to a substantial amount by the end of one year.
Speak to an advisor at Kwiksure
Advisors at Kwiksure are experts in the field and can help devise a suitable and affordable plan that covers both you and the young driver.
Contact our experts today for more information!