Young drivers and the steps to take to get low car insurance premiums
According to the Motor Insurers’ Bureau (MIB) in August, 2009, around one in five young drivers are driving without car insurance. It estimates that as many as 25,000 drivers between the age of 17 and 20 have no cover.
Even though car insurance is a legal necessity in the UK, it appears that many young drivers avoid taking out policies because of the high costs associated with the cover. So how can young people keep their costs in check?
Why do young drivers face high car insurance costs?
Unfortunately it appears there is good reason for insurers to deem young drivers a high risk group. According to the MIB, drivers in this age group are four times as likely to be involved in claims, while the AA points out that one in every five drivers suffers a crash within their first year on the road.
The AA also reports that young drivers are 10 times as likely to be involved in a serious crash as more experienced drivers. General inexperience on the road and, on occasions, reckless behaviour behind the wheel can cost young people dearly with their annual premiums – in fact in 2008 several insurers stopped offering car insurance to 17-year-olds altogether.
Can young drivers get affordable car insurance?
Thankfully many insurers are willing to target young drivers in the hope of securing their business for the foreseeable future, and many insurers now offer specialist policies aimed at youngsters.
However, before shopping around, young drivers should think about the level of car insurance they need. Generally, the more cover you take out the better – however, as many youngsters drive relatively inexpensive cars they may prefer a more basic policy (such as third party only or third party fire and theft) over a comprehensive deal if it helps them make savings.
Regardless of the level of cover the young driver wants, they should compare as many quotes as they can to ensure they’re getting a competitive deal. This can be done relatively quickly by using a comparison website.
How else can young drivers save?
There are many additional ways for young drivers to save money including:
- Add a parent: Asking a parent to be a named driver on a policy could help you save. However, don’t ask a parent to ‘front’ a policy for you as this is illegal.
- Agree to a mileage limit: If you only need a car during term time for example, inform your insurer and you may be able to agree to a mileage limit that could cut premiums by around five per cent.
- Pass Plus: Some insurers will reduce premiums by as much as 35 per cent if you complete the Pass Plus course immediately after passing the practical driving test.
- Rapid bonus scheme: Some specialist insurers offer rapid bonus schemes to new drivers allowing them to earn a full year’s no-claims discount in as little as nine months.
- Security: Youngsters are notorious for parking cars in high crime areas, such as on the street in university cities. So adding alarms, immobilisers and tracking devices could earn significant discounts, as could parking in a garage overnight.
Remember that driving safely is one of the best ways to keep car insurance premiums manageable – building up a no-claims discount and avoiding driving convictions for example. In addition, think about paying premiums annually instead of monthly to cut out interest charges, and consider agreeing to a higher voluntary excess.
