Being a young driver usually means sky-high insurance, with younger drivers statistically involved in more crashes and making more claims, of a higher value, than older drivers. However, there are ways to help reduce costs and keep premiums down so you aren’t paying more for your insurance than you’ve paid for your car. Below is a list of 10 points we think will help you to reduce your costs and make sure you aren’t breaking the bank to stay on the road.
- Pick a cheaper car
All cars on the market can be found in 50 different car insurance groups. These groups are based on all sorts of different criteria, including the make, model, power and what sort of in-built security the car has. As a general rule the higher the number of the group the car is in the higher the insurance. The insurer will also take into account the age, location and driving history of the driver before calculating a quote. You can view more details about these groups and a whole host of other insurance info by visiting here.
- Pass Plus Scheme
The Pass Plus Scheme is a practical training scheme which lasts for six hours. It is designed to improve the driver’s skills and road safety. Many of the big names in car insurance will often give a discount for drivers who have taken their Pass Plus. The amount discounted varies from company to company but can sometimes be as much as 10%, which is definitely not to be sniffed at! You can find out more about Pass Plus by visiting here.
- Pay per year not monthly
Even though it seems daunting paying the whole amount off at once, it will end up saving you a fair amount. Paying the lump sum for the year will save you a considerable amount in interest payments and quotes are generally cheaper when you pay for the whole year instead of month by month.
- Increase security
Making your car safer will lower your insurance bill. Avoid parking on a road overnight if at all possible, your car should ideally be in a driveway or garage and have an alarm or immobiliser fitted.
If you really want to go the whole hog you can look at getting a car black box fitted, or look at a black box insurance policy. A black box is fitted to your car which records all sorts of info about your driving style and habits, so the better and safer you drive the lower your costs. You can read more about car black boxes and black box insurance by visiting Carblackbox and Money Supermarket.
- Adding a named driver, but no fronting!
When you are a first time driver adding a named driver onto your policy, typically someone who is more experienced, can reduce your insurance bill. The insurer will assume that the more experienced and therefore ‘safer’ driver will be driving the car for some of the time over the year.
Make sure that the person who is driving the car for the majority of the time is the named driver though. If it isn’t then this is known as ‘fronting’ and is illegal. Anyone caught ‘fronting’ could be prosecuted and have real problems getting any cover in future. You can find information about insurance fraud here.
- Compare prices
It seems really obvious but it’s well worth the time to have a proper look around and compare as many quotes as you can. Quotes can vary wildly from company to company and an afternoon of comparing prices across different sites can sometimes save you a couple of hundred quid. There’s a great comparison tool at Money Supermarket.
- Tweak your job description
Insurers decide insurance prices depending on historic risk assessment, and your occupation plays a part. This doesn’t mean you can write any job title you like, but you can tweak your job title. There’s a great tool at Money Saving Expert which gives you some help with this.
- Avoid Car Modifications
Although modifications can be appealing to young drivers, to give a plain car a bit more personalisation, they can increase insurance costs by hundreds of pounds. You might want to make your car look amazing or be able to leave your mates for dead but if you can’t afford to insure it you can’t have it on the road!
- Look closely at the level of cover you need
Although comprehensive cover means you are covered for damage to your own car, other drivers cars and also personal injury it can hike the price of insurance up. Third party insurance covers other vehicles and people but doesn’t cover damage to your car or yourself if it’s your fault. It also doesn’t cover you for theft or damage to the car.
Third party insurance is more popular with younger drivers and despite offering less cover can sometimes work out to be more expensive. It’s worth looking at both options as there can sometimes be little difference in price but a big difference in how much cover the policy offers. This article on Uswitch explains the difference between the two types of policy well.
- Look for hidden offers and haggle on prices
It’s always worth looking at any sites which have cashback offers or other special offers which you might not get when buying through price comparison sites. As always Money Saving Expert have some tips on this.
Haggling is always worth a try, especially if you are renewing your insurance. There is often flexibility in the price and by collecting the cheapest prices from the web and then going to your insurer armed with them and looking to haggle you can see what they are willing to do to keep your custom. The link above has more info about this.
Being a young driver is an expensive affair, however, these tips will hopefully lower the price. Remember the best tip on keeping your insurance low is to make sure you drive safely and sensibly so you aren’t making claims. No claims means cheaper insurance and a happier bank balance!!