Lowering the Cost of Young Drivers Insurance
Nothing can beat the excitement of passing your test and enjoying the freedom and flexibility that a driving license brings. Unfortunately for many young drivers insurance premiums have rocketed by 51% over the last 12 months and in these tough economic times the costs of insuring a first car can be prohibitive to say the least. Some insurers have even stopped providing cover for young driver’s altogether, which has driven up premiums even more. According to one insurer, on average male drivers in the 17 – 22 age group pay £2,500 annually for their insurance, while women fare slightly better with average premiums of £1,400. Young drivers insurance premiums tend to be higher than those in the over 35s age group for example, because of a variety of different factors. Statistics show that in the under 21 age group, the chances of an accident are 10 times more likely for men, 5 times for women, than for an older driver. Added to that, young drivers tend to have accidents at higher speeds and often have more people in their car, leading to a higher risk of personal injury for everyone involved. This all bumps up the amount of a claim and it is unsurprising that many insurers shy away from low cost premiums for young drivers insurance. Fortunately there are a few simple steps you can take to lower the cost of your premiums and make the most of owning your first car.
Get some extra training
Taking the DSA’s Pass Plus course can have a significant impact on many young drivers insurance premiums. The Pass Plus course covers topics such as motorway, poor weather and night driving and is great for giving you more experience on the road and making you a safer driver, as well as lowering your car insurance premiums by up to 35% with some companies. The course consists of just 6 supervised driving lessons and costs from £120 to £180, so it is a worthwhile investment for anyone even if they just want to improve their driving skills.
Get the right car
Cars with smaller engines are slower and less likely to be involved in a serious accident, so insurers may provide significantly lower premiums on some older or smaller cars. Do your homework, though, as sometimes the reduced safety features and inadequate security on an older motor can drive the premiums up. If you have an approved (Thatcham) immobiliser / alarm installed on your vehicle by a professional fitter your premium may be reduced by up to 10%. Factory fitted security can also reduce your premium, so always mention any additional security features when applying for a quote. Avoid any modifications to your car, no matter how cool they are. It is likely that your premiums will go up as a result. Similarly if you modify your car and do not inform your insurer you may find that you are not covered as a result. Always check with your insurer before making any changes to your vehicle.
Get your parents to help
Insurers are well aware that parents often lend a helping hand in getting their kids on the road, as well as wanting them to keep safe while driving so use this to your advantage if possible. If you take out a policy in your own name and add a parent as a named driver it could reduce your premiums. However, don’t be tempted to do this the other way around and have your parent take out a policy on your car in their name with you as the named driver. This is known as “fronting” and is totally illegal as it is fraudulent. When it comes to having a parent on your policy, compare quotes with or without them as named driver and see what kind of difference it makes to your premiums.
Other factors that can reduce young drivers insurance premiums include keeping your car in a garage as opposed to on the road and limiting your mileage. You can also start earning your no claims bonus as quickly as possible to reduce your premiums in the longer term and take your time choosing the right insurance cover. Whilst comprehensive cover can be more expensive, this isn’t always true and the extra benefits of extended cover can often save you money if you do have an accident. Researching your options carefully will certainly help to lower your premiums significantly.
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