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Nhlanhla Ncaca

TURNING 18 is a huge milestone for teenagers. They can go out and get their driving licences and probably their first cars.

However, insurance companies are extremely cautious when it comes to insuring drivers in their teens and early 20s as they are considered a greater risk on the road.

Consequently, this group pays the highest premium. As a result, some parents dupe the system by declaring themselves as regular drivers of their children’s vehicles in order to pay a lower premium.

But insurance companies warn parents against falsely insuring their children’s cars. Angelo Haggiyannes, director of Auto & General Insurance, says this short-sighted way of insuring a vehicle is risky.

If, for example, a vehicle is stolen or involved in an accident and it transpires that the child is the regular driver of the vehicle, and not the person who took out the insurance policy, the insurer has every right to reject the claim.

Paying a lesser premium on the pretext that the parent is the regular driver when the child is, prejudices the insurer in that the claim may be rejected, Haggiyannes said.

Insurance premiums are calculated according to a sliding scale, and an 18-year-old driver will pay the highest premium – and additional excess charges.

According to Haggiyannes, international industry statistics show that young drivers account for about 45% of fatalities on the road between 11pm and 6am.

Young drivers are also 10 times more likely to have an accident at night, rising to 14 times on weekend nights, he said.

Arrive Alive in South Africa has found that drivers between the ages of 16 and 19 years are four times more likely to crash vehicles than older drivers, added Haggiyannes.

And almost a third of such fatal accidents occur as a result of alcohol intake and speeding.

“Motorists under the age of 25 have a tendency to test boundaries and assert their independence, and typically enjoy a vibrant social life.

“They may be inclined to show off, be susceptible to peer pressure and drive too fast, sometimes under the influence of alcohol or drugs.

Haggiyannes stressed that there are no loopholes when it comes to insurance. Rather tell the truth and pay a higher premium than risk having your claim repudiated.

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