Car Insurance For Young Drivers – Cheap car insurance for young drivers: top tips Our guide to car insurance for teenagers, which could save you hundreds on your annual bill
As a younger driver, car insurance is the biggest expense once you buy your car and there are no two ways about it: under 25 cover is expensive.
Car Insurance For Young Drivers
This can be the biggest obstacle between you and enjoying your drive because, simply put, the car you want to drive is often off-limits because it costs too much to insure. So you end up buying a cheap car just because it’s the only car you think you can afford to cover.
Why Is Car Insurance So Expensive?
What can we say, think again and definitely don’t give up easily. There are insurance deals out there as long as you’re willing to shop around and accept a few trade-offs. There are even cars that are fun to drive around that don’t cost anything to insure.
There are various ways young drivers can reduce their premiums, although the most effective is to delve into comparison sites and find the best deals for you – not least because some companies accept younger drivers more than others.
There’s no substitute for spending hours on a laptop, because there’s no escaping the fact that under-25s (and over-70s, by the way) are being charged more to insure their cars. This is because statistically they are more likely to demand, simple as that.
There are other ways you can lower your premiums, some more obvious than others. However, neither will work unless you’re willing to put in some reasonable distance, both on the laptop and after you get up and running behind the wheel.
Why Does Young Drivers Insurance Cost More?
First, if you name an older driver on your policy, a parent, for example, many insurance companies will charge you less for your coverage. Remember, this doesn’t work the other way around: whoever uses the car the most must be the named driver on the policy. Insuring a car in a parent’s name and then adding the young driver as a named driver, knowing full well that he will be driving the car most of the time, is known as fronting. This could void your insurance policy and could land you in court.
Second, save and opt for an annual policy instead of paying by monthly direct debit. It won’t cut your costs by a huge amount, but every savings is worth it. Just follow these two steps and you could save hundreds overall.
Third, drive better and get rewarded for it. The best way to do this is to opt for a black box policy where the insurance company fits a GPS device on your car that monitors your driving habits and reduces the policy accordingly. It sounds a bit Big Brother, yes, but if it lowers your premium, either immediately or when you come to renew, it might be a discount that puts coverage on a more desirable car nearby – and it doesn’t have to be forever either, because several years of proven good black box driving can reduce standard premiums.
However, keep in mind that not all black box policies are the same and there are some nasty hidden costs that may apply. Some companies will charge more to install the black box than others, while others will also charge to remove the device if you change the policy. And while outright curfews are rare, black box policies often result in higher costs if you often drive at night, while all companies will penalize what they consider bad driving – think speeding, sudden braking and sharp turns. So remember: a black box policy can be a great way to save money if you drive well and follow the rules. But they can increase your insurance costs, now and in the future, if you continue to ignore them.
Best Cheap Car Insurance For Young Inexperienced Drivers
Fourth, you can also lower your premium by increasing the excess you are willing to pay, although this decision can come back to haunt you if you have an accident. Remember that some fights involving vehicles or anything else they might come into contact with are cheap.
Five similar benefits (and caveats) apply when you choose to use third-party insurance coverage or a third-party fire and theft policy. These policies are cheaper than comprehensive coverage, but companies often consider drivers who choose something other than a comprehensive policy to be a higher risk. Moreover, any damage you do to your own car will not be covered.
Some comprehensive policies will even cover you driving a rental car or someone else’s car, although this is rarely included in the fine print of a young driver’s policy. Check the details of each comprehensive insurance as not all policies cover the same things and the fine print can vary from company to company.
Sixth, you’ll also save money by first buying the right car (see panel) and then shopping around to find the best deal for your particular situation. In fact, while one company will charge a 20-year-old trainee estate agent with a clean driving record £1,450 a year to comprehensively insure a 2015 Renault Clio garaged overnight in Oxford, another will charge more (or less) , apparently without obvious reasons.
Young Driver Insurance
Except there’s usually a reason, and in this case it’s probably the words “trainer” and “real estate agent” that confuse the algorithm. This computer-generated formula analyzes the risk posed by the customer and the likelihood that the insurance company will pay. Although it may seem unfair, in the eyes of insurance companies, drivers with certain occupations are more likely to make claims. Those who work as clerical workers are generally considered to be among the most at risk, while professional athletes are higher. You may not choose to use your actual job title when applying for car insurance, but whatever you list as your occupation should reflect the work you do. Insist on the truth and you may find your policy invalid. A lie and it is a lie, plain and simple.
Finally, don’t go back to the same insurance company year after year. Although the Financial Conduct Authority is looking at the issue, customer loyalty is not widely rewarded by the insurance industry. This means that if you stay with the same company, they will often charge you more when it comes time to renew, not less. So again, shop around when you renew because right now the best deals are available to new customers, not existing ones.
Automakers need sales, and getting new drivers behind the wheel is one way to do it. But the high cost of insurance, not to mention the cost of buying a brand new car, will drive most new drivers to their local dealership unless they have the bank of mum and dad to cover the cost.
If that’s the case, there are plenty of attractive finance deals that offer an affordable way to drive a new car, and manufacturers sometimes help insure young drivers too.
How Can Young Drivers Reduce Their Car Insurance?
Paying a lump sum for car insurance over the year can be daunting and for young drivers it’s often more than their car is worth, but it’s often cheaper than paying by monthly direct debit.
Many insurers will offer monthly repayment plans or split the cost into two six-month payments, but the reality is that you’ll end up paying more in the long run. Some insurers add up to 10 percent to the quoted premium if you pay monthly, while others charge interest on monthly direct debits. If you can get the money in advance, this is the most cost-effective way to pay.
There is inevitably a lot of jargon involved in the car insurance market, but our handy guide will explain some of the key terms…
This is the amount you have to pay if you file a claim before the insurance company pays. If you have a claim for £1,000 and your excess is £400, you will pay the first £400 and the insurance company will take the rest. Mandatory extras are what the insurance company determines, while voluntary extras are determined by you. Setting a higher excess will lower your annual premium.
Inflated Car Insurance Premiums Deflating Young Drivers
This policy offers the most comprehensive level of car insurance available. With comprehensive car insurance, you can claim from your insurance company for accidents that are your fault or where fault cannot be proven, such as in a parking lot.
This is the minimum amount of cover you can buy. It protects you against damage to the vehicle or other structure, injury to third parties or your own passengers and the cost of medical treatment and legal claims against you. Third-party fire and theft protection adds protection against someone trying to steal your car or set it on fire.
Well equipped and beautiful, the Kia Picanto is
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