Young drivers may feel unfairly penalised when it comes to car insurance premiums. They can be quite high. However, there are a few things you can do to ensure that you get the best deal for your age group.
Young drivers often pay more expensive car insurance premiums. Providers see new motorists as having a statistically higher chance of making a claim. According to this data, average car insurance premiums for young and new drivers between the ages of 17 and 24 is £1183 per year – as of June 2017.
Car Insurance for Young Drivers: What’s the Cheapest?
When looking for car insurance, young drivers may want to put their “dream car” on hold. According to the data, it makes sense to get a cheaper model. It means much lower premiums. In the long run, you end up saving more money. As a general rule: the more expensive a car is, the more it’ll cost to insure.
So for young drivers, it just makes sense to go for the more sensible (and cheaper) option. However, there are a lot of other factors that must be taken into account.
For Young Drivers: Types of Car Insurance
The minimum car insurance that young drivers need is third party cover. It is legally mandatory. Further levels include third party fire and theft (TPF&T) – which gives your vehicle more protect – and comprehensive car insurance that offers the most extensive level of coverage.
For this reason, you should compare all levels of cover. Fully comprehensive isn’t always the most expensive choice. Why? Because Third Party and TPF&T are the reflex choices for risky drivers who want to save money.
On average, third party is only around £500 more than fully comprehensive policies if you’re a young or a new driver.
Car Insurance for Young Drivers: The Telematics Option
Telematics is also known as “black box” car insurance which offers young drivers a very effective way of lowing the cost of their premiums. Through a small transmitter in your car, information about driving style and patterns is relayed back to the insurer. This allows them to base premium prices on how you drive, instead of lumping you in with the rest of your age group. Sometimes, this information is also relayed through an app downloaded onto a smartphone.
This approach is viewed as a fairer way of pricing policies and has seen many young drivers have their premiums significantly reduced.
Many see this approach as much fairer when it comes to pricing policies. Thanks to this, many young drivers have seen reductions in their car insurance premiums.
Cutting the cost of car insurance for young drivers is certainly possible and there are multiple ways to do it. For example:
- Run a price comparison: Using a comparison tool, insurance quotes can instantly be compared in order to find the best cover.
- Improve Driving Skills: For reasons of safety, this should be your goal anyway. However, many insurers are willing to reduce premiums if you have completed Pass Plus.
- Adding a Named Driver: Don’t forget, however, that the individual who drives the car the most must be listed as the “main driver”.
- Pay Upfront: Paying monthly premiums is often costly due to interest – paying everything upfront is usually cheaper.
- Voluntary Excess: Remember that after a certain level of excess, cost of coverage doesn’t change.
New drivers need to take the time to look at the options available. Don’t always go with the first policy you see: in fact, over time it gets easier to determine what’s a good deal and what’s not.