Young driver car insurance – how to reduce your premium
During 2007 there were nearly 250,000 road accidents with nearly 3,000 people killed according to the Department of Transport. An estimated 25% of these were caused by reckless driving including aggressive behaviour (such as tailgating) and driving under the influence.
Unfortunately a large proportion of these accidents were caused by young drivers with 18 year olds responsible for three times the amount of accidents as drivers in their 50’s. Even though drivers under the age of 25 make up only 17% of all UK motorists, they account for approximately 33% of all car insurance claims making them a much bigger risk than older drivers in the eyes of insurance companies.
How can young drivers secure cheap car insurance?
In 2008, some car insurance providers including AXA and Swiftcover stopped quoting 17 year olds altogether due to the risks involved. However, most mainstream insurance companies will offer a quote for young drivers. There are a few companies that offer car insurance specifically for young drivers including:
17 – 24 Car Insurance – Has policies for provisional drivers with discounts for completing the Pass Plus course.
AA – A discount of up to 35% for completing the Pass Plus
Endsleigh – Approved by the National Union of Students, this insurer will cover both provisional drivers and new motorists with Pass Plus discounts.
Norwich Union – Offers a rapid bonus scheme in which young motorists can build up a full years no claims discount in just nine months.
How young drivers can reduce their car insurance premium
When purchasing a car and subsequently car insurance there are a few points that young people should consider:
Drive the right car – Cars with smaller engines and low insurance groups (insurance groups run from 1 – 20 with 20 being the highest) are cheaper to insure, as are older vehicles – premiums drop when a vehicle reaches five and then ten years old.
Car usage – When insuring your vehicle it is important to be as clear as possible on how you use your car. Most insurers offer “social, domestic, personal use and commuting”. If you do not use your car for traveling to work it is important to specify this as it will reduce your premium.
Limit your mileage – By limiting your mileage you can further reduce your premium as insurance companies will view you as less of a risk if you are not on the road. By limiting your mileage you can reduce your premium by up to 5%.
Improve security – Fit a car alarm, immobilizer and other security measures to make your car less of an attractive option to thieves, thus reducing risk and your premium.
Pass Plus discounts – Some insurers will offer a 35% discount to drivers who complete the Pass Plus course within 12 months of passing your driving test.
Pay annually – If you pay annually rather than by monthly installments, you can cut out interest charges in the region of 20%.
Above all, do not accept the first quote you receive, by using a price comparison website to compare car insurance quotes you’ll be able to assess whether you’re getting a good deal.
