Young driver’s motor insurance costs are notoriously high- discover why and what you can do to lessen the financial impact.
The main reason car insurance for young drivers are exorbitantly high is because of the degree of risk they are perceived to be by their insurer.
Now, if you are a teenager and you’re having problems passing your driving test, wait till you try obtaining a car insurance policy in your name- that’s when things begin to become difficult.
According to a research conducted by AA; drivers aged between 16 and 25 are the major cause of one third of road fatalities here in the UK. Also, 1 out of 5 young drivers is involve in an accident within the first 12 months of them taking to the wheel. Similar studies also showed that young drivers often become victims of vandalism, fire and theft which make up a huge percentage of insurance claims nationwide.
The result of yet another AA study also shows that male drivers between the ages of 16- 22 paid an average insurance premium of £3, 700, while their female counterpart of similar age bracket paid an average bill of £2,300- and the premium is not even close to reducing.
June 2011, European Court of Justice ruled that the use of gender to determine motor insurance premiums was unfair- in other words, from December 2012, insurance companies will be prohibited from using gender as a determining factor when setting vehicle insurance premiums for motorists.
With no solution in sight for young drivers looking forward to cheaper premiums for their vehicle, the pay as you drive scheme has become the most popular choice for young drivers looking to pay cheaper premiums.
Young drivers will be amazed at the amount of savings they can make when buying a pay as you go insurance policy rather than the conventional annual policy that most insurance companies offer.
The way this scheme works is that; a little black box, the size of a mobile phone is fitted to your vehicle by your insurer. Now, this device monitors your driving habits- when and how you brake, the amount of miles you cover, how long the vehicle is parked for, your average speed when driving and many more.
At the end of every month your insurer electronically obtains these data which is later used to calculate your premium. So you only end up paying for the miles you drive and pay nothing for the ones you don’t. This is a great concept- and a great way of saving you money both in the short and long run.
Unlike the annual policy, you can stop the pay as you go policy at any time without paying a penalty for cancellation.
You can also start building up your no claims bonus (NCB) or protect it as time goes by. Why not get a free quote today and save money on your premiums. Click here to get cheap car insurance for young drivers’ quotes!
Apparently, there are other effective ways young drivers can obtain even cheaper car insurance quotes.
- Avoid modifications to your vehicle. Insurers detest that- they do not like boy racers. Modifications like nitrous kits, turbo chargers can easily sent your premiums sky high.
- Endeavour taking and passing the Driving Standard Agency’s Pass Plus training and exam. The test can be taken at any time, although it’s aimed at new drivers within the first year of passing their standard driving test. It’s a 6 module course with a fee of about £150 which is worth the money because drivers who completed the course can get discounts on their car insurance for as much as 40%
- Always shop around and avoid complacency. When you shop, compare cheap quotes meticulously because not all cheap quotes is worth your time, as some cheap quotes will lack benefits.
- Avoid assuming third party cover is the cheapest level of cover. Many motorists fall into the trap of assuming that third party policy is always the cheapest out of the other 2 levels of cover (comprehensive and third party fire and theft)- In the event that you damage a third party’s car, that third party’s vehicle will be covered but your vehicle will not be covered as you will bear the sole responsibility for costs of repairs- which isn’t wise. However, fully comprehensive policy protects both cars in similar situation.
- Always buy a car you can afford. Every car car in the UK is assigned to car insurance groups- the lower the group (1-50) the lower your car insurance premiums. Typically, it will be a lot cheaper to insure a Nissan Micra than Mercedes Benz AMG. You can find more information about car insurance groups on the website of Association of British Insurers (ABI).
- Consider a pay as you go option- which is more flexible and cheaper than conventional annual policy. This way you only pay for the mileage you do and pay nothing for the ones you don’t. Just avoid driving at peak periods when most accidents are likely to occur- that way, you get more discounts off your insurer. Compare quotes for car insurance for young drivers.
In addition to young drivers paying ridiculously more for their car insurance premium compared to the more experienced and older drivers, a good number of insurers these days practically refuse to insure teenage drivers because of the amount of risk they present.
Avoid driving without a valid car insurance cover. Although the government estimate that there are over 1.4 million motorists on the road that do not posses a valid insurance cover for their vehicle, these culprits risk a maximum fine of up to £5,000 along with 6-8 penalty points on their driving licence.
Similarly, fronting is another insurance offence trending these days. This involves a main driver or registered keeper of a vehicle insuring it under their parents name while adding themselves as a named driver. This act is hugely frowned upon by all insurers and culprits risk cancellation or invalidation of their policy and charged with driving without a valid cover.