Wind the clock back a decade or two and it would have been laughable to even think that insuring an average ‘first car’ may be more expensive than the car itself, but these days it’s a reality that many new, young drivers have lived with quite some time. The cost of insuring even a small, basic, second hand car may be a barrier preventing some youngsters from even taking driving lessons. But if you or perhaps your child, or other young relatives, are at the age where they’re thinking about driving, there are options out there which make insurance more affordable.
The insurance market is being joined by increasing numbers of providers who specialise exclusively in insuring young drivers. Many of them use the latest in telematics or ‘black box’ technology, which shouldn’t be thought of as being a Big Brother kind of system but rather, one which teaches new drivers to drive safely and economically. Doing so reduces their renewal premiums, results in less accidents and can even earn them reward points and cashback.
Why is car insurance typically so expensive for new or young drivers nowadays? A lot of it is down to driving experience, or lack of, which makes young drivers, however careful, more prone to accidents. This is another way in which black box insurance can benefit young drivers, who can prove they are responsible and safe on the roads.
The car you drive also has an impact on the cost of insuring it, so new and young drivers are better off driving small, less powerful cars for the first few years, which will let them build up very useful experience in driving, as well as their no-claims bonus. Small cars are now cool and actually highly desirable, many of them coming with loads of technology including smartphone touchscreens, self-parking functions and Bluetooth. Superminis and city cars also tend to look funky and stylish, too.
The price of insurance premiums can be reduced if you’re able to park on a driveway, or even better, in a garage. If you can agree to a lower mileage of around 5,000 per year for example, the premium will likely be less than an open-ended policy. Taking the Pass Plus course is also a great way of improving your skills at an early stage and reducing your insurance. The course covers night driving, motorway driving, anticipation and awareness.
One tactic we wouldn’t recommend is ‘fronting’, whereby a young driver’s parent puts their name down as the main driver and their son or daughter’s name as an additional driver, even though they will be driving that car the most. If the insurer found out that the main and additional drivers’ names were basically the wrong way round to try and reduce the insurance premium, they may refuse to pay out if an accident occurred. Honesty is always the best policy.
CarShop’s experienced car consultants are here to help and would be more than happy to offer advice regarding insurance for young drivers. It’s worth bearing in mind that we offer an incredible ‘FREE 5-day insurance package’, which will get you home with your new car, and give you time to sort out your insurance without rushing into anything. If you have any young driver car insurance stories to tell or questions to ask, we would love to hear from you via Facebook or Twitter.
- On: 01 December 2014
- By: CarShop
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