Young Drivers Guide To Car Insurance
Although the price of car insurance for under 25’s is continuously going down, it is still far from reasonable! Especially since the average premium for 17 – 22 year olds is £1,217 per year. I have decided to write this guide to help ensure you save as much money as you possibly can when choosing your car insurance.
1. Pick Your Cover
So you’ve passed your test, the L plates can finally be taken away and all you want to do is get yourself on the roads. Well first things first, you need to pick your cover. There are three to choose from; fully comprehensive, third party fire and theft and third party only. People often assume that third party only is the cheapest choice for young drivers as it offers the least amount of cover. However, this isn’t always the case and you should definitely do your own extensive research before making this decision. Make sure you get quotes for third party AND fully comp just incase third party happens to be more expensive. Try price comparison sites such as gocompare.com and moneysupermarket.com to find the cheapest deals on offer.
2. Push Down The Cost With A Little Black Box
There are a number of ways you can slowly but surely bring down the cost of your insurance, one of these little tricks being ‘the little black box’, also known as a telematics device. The telematic policy is a policy that prices your premiums depending on how you drive. By having the device fitted into your car after you’ve passed your test, you can feed data back to your insurer which tells them information about how fast you’re driving, how harsh you’re breaking, and how swiftly you’re taking corners etc. Ultimately, if you prove yourself to be a safe driver, then you could earn yourself money back on your premiums. The price of insurance can vary depending on how well the car is being driven, however, if you are a horrendous driver then your insurance could be completely cancelled, although this is extremely rare!
3. Add A Responsible Second Driver
By adding a second or even third driver onto your car insurance, you are averaging out the risk of claims and could save up to £1,000. Older, more experienced drivers are the best people to get on board your insurance in order to see a significant reduction of price. The better the driving record the bigger the savings. Even if the second driver isn’t going to be using the car that much, the insurers may still feel it’s a safer step to take in terms of your policy.
4. Drive The Right Car And Avoid Modification
The more powerful and expensive your car is, the more expensive it’s going to be to get covered. The thought process of the insurer is that the more powerful the car, the more damage caused in accidents (which means claims cost more); and repairing or replacing a high-value vehicle will also add to insurers’ expenses. If you haven’t bought a car yet, I suggest you check insurance quotes for the vehicles you are considering. If you are struggling to afford premiums on your current motor, think about trading it in for a more sensible replacement. Also be sure to tell your chosen insurance firm about all modifications you are thinking of making to your vehicle, and check how they would affect your price before you do them, even if they don’t enhance performance. If you don’t inform them, your insurance could be invalidated!
5. How To Keep Your Premiums Low
Providing you avoid accidents and drive sensibly, you should find that your insurance premiums get cheaper after your first year. However, just because you managed to find cheap cover for your first year of driving, doesn’t mean it will come naturally to you in the years to follow. When you receive your renewal letter 11 months after taking out your policy, use this as encouragement to start the process of shopping around again for better deals. A little trick would be to apply for cover again with your current insurer but as a new customer, it’s likely you will be offered a cheaper deal.
Remember that the car insurance business is a very competitive one and companies want your custom. This means that companies are open to haggling which is all the more reason not to fall for auto-renewing. By automatically letting your insurer renew your insurance you are cutting yourself off from savings on better deals.
