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By Eamon Moran
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If you are a first time or inexperienced driver, you probably have encountered lots of insurance terms that can make the process more complicated and intimidating than it needs to be. A common question we get asked by car owners is what the difference between a standard and a tracker car insurance is.
1. What is Standard Motor Insurance?
This is the same type of policy experienced drivers will take out. Some companies place minor restrictions on the type of policy they offer to young drivers or provisional licence holders. Most car insurance policies will cover the driver to drive another private car on a third-party basis that they do not own the car, but this benefit is typically restricted to those with a full licence and over the age of 25. Insurers will also usually place a higher excess on inexperienced or young drivers. Typically, anyone under 25 or with a provisional licence will have a higher excess in place. If the standard excess is €250, the higher excess for younger driver or provisional licence holders would typically be between €375 - €500. All other benefits and features of these policies typically apply to young drivers.
2. What is Tracker/Telematics Policy?
These are products targeted at young and first-time drivers and are sometimes known as black box insurance. These policies at first glance look like they are a cheaper way to get your first insurance but may end up costing you more over the full year. There are a limited number of insurers who include some form of insurance approved vehicle tracker or app with your insurance policy. This involves having a car tracker fitted which must be used at all times for your insurance to be valid. The black box will track your average speed and measure your driving style like how you brake and accelerate. Some providers of this type of insurance will penalise you if your speed is above a certain limit in certain areas.
Car insurance can get higher for young drivers if all these factors are not considered initially.
When purchasing one of these policies you are typically limited to the mileage you can do in a given month – if you go over this mileage limited, you will then have to pay an additional fee. When comparing the price of both the standard car insurance and the tracker car insurance, it is important to look at all of the ways your tracker insurance can increase from the original premium and make sure you are able to abide by all of the rules set out in your agreement. If you get half way through the year and find out that the cost of the tracker insurance is actually too expensive, and you need to cancel and take out standard car insurance you won’t get the benefit of the 6 months claims free driving you have gained and will have to start from the beginning again.
Are you under 25 & have completed your driving lessons? If yes, contact us as you may be entitled to a discount. If you have any other questions, call our dedicated young driver team on 01 582 7108 who will be happy to help.