Newly qualified young drivers often struggle to find affordable car insurance, but there are ways around it!
Latest data shows that average premiums for young drivers aged 17 to 22 are now over £1,200.00 (AA British Insurance Premium Index July 2016)
Newly qualified young drivers often struggle to find affordable car insurance, but there are ways you can save some cash and still be covered.
Why is young drivers car insurance so expensive?
Many people think that it’s just a about covering the cost if their car is damaged or stolen, but that’s only one of the many factors taken into consideration when calculating insurance premiums.
Research by the Driving Standards Agency found that one in five new drivers have a crash within their first six months of driving.
As First Time Drivers do not have any driving history, insurance companies base the risk of them making a claim on statistics.
Top tips on how to find the best cheap car insurance for young drivers?
1. Find the cheapest cars to insure – Insurers place cars into individual insurance groups from 1 to 50 (50 being the most expensive).
A sensible, small car will cost far less to insure than a high-spec model with alloys that you may not have the experience to drive. (Find out more here)
2. Increase your Excess – This is the amount you have to pay up front if you make a claim – a higher excess could significantly lower the cost of young driver insurance.
Be aware though… it may end up costing you more in the long run if you do have to make a claim.
3. Don’t pay for something you don’t actually need – The minimum level of cover to legally drive in the UK is third party car insurance.
This will cover repair costs or injuries to any third party affected by an accident you cause.
4. Add a second driver to your policy – This is a way to show the insurer that the young person will not be the only one driving the car, which reduces the chances of an accident occurring.
Young drivers often add a parent to their policy. This generally brings the cost of your cover down significantly.
5. Telematics/Black box insurance – This is a small device fitted to your car which tracks how you drive.
It measures speed, distance travelled, the time of day/night you are on the road as well as your braking and cornering.
Your insurance company analyses your data to give you a tailor made policy.
These are great for new drivers, and a usually the cheapest way to insure your first car.
6. Complete the Pass Plus training course – Take this course after you’ve got through your driving test and you could see your premiums drop by 25%, it could mean hundreds of pounds for teenage drivers.
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