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Young DriversIf you are under 25, chances are your car insurance premiums will be higher than average. Being young puts you at an automatic disadvantage, because one in five new drivers will have an accident in their first year on the road. Insurance companies are understandably cautious when awarding policies to young drivers, particularly those under 21 years of age, but there are a variety of steps you can take as a young driver to reduce the price of your car insurance. The first proactive step you can take toward cheaper car insurance is opting for a higher excess in the event of a claim, particularly if your car is older. However, the real key to lowering your car insurance premium at any age is to make the insurance company see you and your vehicle as less of a risk. |
| Choose your car carefully The best rule to go by in your first year or two on the road is: insure a car with the smallest possible engine size. This is because more powerful engines mean higher top speeds, and though all people under 25 aren't boy racers, speed is a major factor in the accidents young drivers have. If you haven't yet purchased a vehicle, it is recommended you shop for insurance at the same time as looking for a car - this way you know the cost of keeping your vehicle legal in addition to the purchase price. When you are considering vehicles, buy an older car as these are generally cheaper to insure as they cost less to repair and replace. If the resale value of the car is quite low, a third party, fire and theft (TPFT) policy may be cost effective - do weigh the risks of taking out TPFT coverage though. |
| Good investments Two of the most cost-effective investments are immobilisers and alarms - having either of these is likely to give you a bit of a discount on your premium, having both devices or a combined system installed is likely to give you a better discount. As alarms and immobilizers are a bit pricey, it is best to ask your insurance company if they have a recommendation or preference for a particular type or make. This will ensure you've spent your money wisely and offer you the best reward for your investment. Generally, fitting a tracker to your first car isn't appropriate - the devices are expensive, and though you're likely to get a bit of a discount on your premium, the odds are the car you're trying to insure simply isn't worth the extra expense. |
| If you can keep your car garaged overnight, this will provide a reduction in your premiums - some companies give you a reasonable discount for parking your car on a drive, but most would be likely to do this only if you have a driveway which can be reasonably secured (ie with a gate). Perhaps the best way to show the insurance companies that you are less of a risk is to take (and pass) a Pass Plus test. Many insurers will give you a reasonable discount for this, and what's more, it will add to your confidence behind the wheel. |
Shop around There are a number of companies specialising in car insurance for young drivers. It is a competitive sector of the market, largely because drivers under 25 expect to be charged more, and thus settle for the quotes they are given. It is worth getting quotes from a couple of these specialist firms as well as ordinary insurers - while some companies claim to offer discount car insurance for young drivers, this isn't always the case. Remember, even online insurers have helplines. If you find that you like a particular company's policy or benefits, but they've quoted you more than another company, feel free to ring the company you like better and ask them to match the other quote. It is amazing how easy it is to haggle with some insurers. Be honest |
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