Car insurance costs are expensive if you’re a young driver. But you can reduce the costs. Here are some tips from the experts.
1. Choose your car carefully.
The cheapest car for a young driver to insure is an old style VW Beetle. But if that doesn’t appeal, small Nissans and Fiat models are also cheaper to insure. Graeme Trudgill, British Insurance Brokers’ Association.
2. Don’t over insure yourself.
Think carefully about your needs in terms of mileage and what you actually use the car for as it could make a real difference to your premium. Gareth Kloet, Confused.com
3. Think about adding a second driver to the policy.
You can add a parent’s name to your own insurance, but don’t get your parent to insure the car in their name if you’re really the main driver. It’s called ‘fronting’ and it is illegal. Ian Crowder, the AA.
3. Find an insurer specialising in young drivers.
Adrian Flux is the largest specialist car insurance broker and it arranges a lot of insurance for young drivers. It’s definitely worth talking to a broker who knows this market. Graeme Trudgill, British Insurance Brokers’ Association.
4. Compare the cost of third party and fully comprehensive policies.
You might think that a policy that covers you for third party fire and theft would be cheaper than a fully comprehensive one, but that’s not always the case. Peter Harrison, Moneysupermarket.com.
5. Be careful about increasing the excess.
Many young driver insurance policies have a standard excess of £250 – £300 and you may be tempted to take a voluntary excess (one that you can take to reduce your premiums further). But it could mean you have to pay the first £500 or more of any costs if you do have to claim. Graeme Trudgill, British Insurance Brokers’ Association.
6. Consider pay as you go insurance.
Insurance where you pay according to the number of miles you do (and when you drive) could save 15-20% on insurance. These work by fitting a telematics recorder to your car and different insurers have different rules; some limit the number of miles that are included in the policy and after that it’s pay as you go, others say you can’t drive at night. Peter Harrison, Moneysupermarket.com.
SAVVY TIP: These policies are also called ‘black box’ or ‘telematics’ policies and some monitor how you drive (for example, if you accelerate or brake sharply, how you corner). Experts say that these can be a better deal for young female drivers because – generally – young women don’t tend to accelerate and brake as sharply as men.
7. Don’t make a claim.
If you’ve not made a claim, after the first year your insurance costs could fall by a third. It’s quite an incentive to drive carefully! Ian Crowder, the AA.
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