Young and inexperienced drivers are likely to face high motor insurance premiums because of a higher perceived risk of accidents. However, one insurance provider in Singapore is willing to give them lower premiums, in exchange for one thing.

AAS Insurance Agency, a subsidiary of the Automobile Association of Singapore (AAS), has released a new motor insurance policy for young drivers under age 24 or new drivers with less than two years’ experience. The policy, offered in cooperation with Liberty Insurance Singapore, allows young or new drivers to attend AAS Academy’s Safe Driver Program, which aims to correct road safety misconceptions and improve driving behaviours.

After attending the programme, they will have their additional premium loading reduced by 10% and will be subject to a policy excess of SG$400 instead of SG$3,000.

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“Young or new drivers are deemed to be less safe than a seasoned driver as studies have shown that these drivers are more prone to being involved in road accidents,” said AAS president Bernard Tay. “Often, accidents are a result of human error and we want to instil the right attitude to this group of drivers and help them to be safe on roads by raising their risk awareness and understanding of how they should react under differing road conditions, thereby lowering their chances of a crash.”

Drivers can also track their daily drives through Liberty’s DriveWell app, and safe drivers will receive petrol vouchers as incentives.

“Liberty Insurance is pleased to collaborate with AA Singapore to offer motor insurance that serves young and new drivers. This insurance offers good coverage to drivers and allows them to pay for only what they need.” said Chang Sucheng, CEO of Liberty Insurance Singapore.