Finding cheap car insurance is never the easiest of tasks, but even more so if you are a young driver. Unfortunately, if you are a young driver, the statistics do not stack up in your favour:
- One in five drivers will have an accident in their first year of driving.
- 26% of all road accidents involve at least one young car driver aged between 17 and 24.
- Most young driver accidents occur on Friday and Saturday nights, which let’s face it is the time you are most likely to be driving.
Just these figures alone indicate why insurance companies deem young car drivers to be more of a risk and explains why premiums are so incredibly high – the average premium for a 17 to 22 year old is ?1,194 a year. But, don’t despair just yet, as there are things you can do to find cheap car cover.? Check out our top tips for cheaper car insurance below:
Choose your car wisely.
In the UK, every make and model of car is assigned an insurance group. These groups are numbered 1 to 50, with 1 being the lowest group and 50 being the highest. So, if you have the money or are lucky enough to have been bought a Porsche 911, which is in insurance group 50, as your first car, you can expect to pay a pretty hefty premium.? It may not be anywhere near as cool driving around in a Renault Twingo or a Vauxhall Corsa, but driving a car from the group 1 category is going to save you a LOT of money!
Don’t pimp your car.
As tempting as it may be to lower the suspension, add on the latest and largest alloy wheels or kit your new car out with sub woofers and speakers that could provide enough bass to fill the O2, don’t do it! Any modifications you make, no matter how slight, have to be declared to your insurer and unless they are in connection with security, you are going to be hit with a higher premium.? Don’t think you can get away with not telling your insurance provider either, because failure to do so will only result in your policy being invalidated.
As mentioned, the only thing you can add to your car without the insurance rising is security devices.? In fact, if you add anything that may help reduce the risk of your car being stolen, it is likely to lower your premium. If your car doesn’t already have an alarm, an immobiliser system or door and ignition locks it is worth finding out how much it would cost to add these onto your car, as it may well be the cheaper option in the long term. Other ways to increase the security of your car, without having to spend any money, is to keep it parked in a safe place, ideally a locked garage and to never store valuables inside it.? Simply by taking the stereo, sat-nav and any other valuables you may have, when you lock the car, will instantly make it less of a target to thieves.
Third party is not always the cheapest.
People naturally assume that third party insurance is the cheapest option for young drivers, because it offers less cover than the other two options; third party fire and theft, and fully comprehensive. However, although in most cases this might be true, there are in fact some insurance providers who offer comprehensive cover at a cheaper rate than other provider’s third party only policies.? It is always worth checking out the free online comparison sites to find the best deal for you, chances are you’ll be pleasantly surprised by the options available to you.
Add a second driver.
If you add someone who is a responsible driver to your insurance policy you are likely to see some big savings, so why not consider adding a parent as a named driver. One thing you must never do is allow a more responsible driver to list themselves as the main driver of your car, with you then added as a named driver. Although, this may seem a smart way to get cheaper insurance, this practice is called ‘fronting’ and is a form of insurance fraud, which will not be taken lightly. Not only will your insurer refuse to pay out if you need to make a claim, but you may also face prosecution and be refused car insurance by any other provider in the future.
Young drivers policy.
There are lots of providers out there, who offer policies specifically with young drivers in mind. Many of these providers insist on the use of recording devices, or ‘black boxes’, which are fitted into the driver’s car and monitors their driving ability.? The data it collects is passed back to the insurer, who may then reward for ‘good behaviour’ with, say, lower premiums or money back. This type of car insurance is known as telematics and is becoming increasingly popular amongst younger drivers. Some of the best providers of telematics products include:
- Direct Line Drive Plus – will automatically give you a 25% discount, but with the understanding you must pay it back if you don’t drive responsibly.
- Coverbox – offer a ‘pay as you drive’ plan, which allows you to select mileage from as low as 3,000 miles.
- iKube – aimed at 17-25 year old’s, who don’t often drive between 11pm and 5am. If you do happen to drive between these times, there is an extra fee.
- Drive Like A Girl – also aimed at 17-25 year old’s, who don’t drive overnight, although this is restricted from 11pm until 4am. Confusingly, they offer policies for both females and males, taking the statistic that girls generally drive more responsibly than boys and stating ‘drive like a girl’ and you could get some money back.
- Insure The Box – you can choose a 6,000, 8,000 or 10,000 mile per year policy and earn extra miles by driving safely.
If you are confident in your driving ability, then opting for a telematics policy could be the way to go. Just be very aware that any bad driving you do will not go unnoticed, the box will see and record EVERYTHING and if it does capture something bad you can guarantee your premium will increase.
Learner driver insurance.
If you have not yet passed your test, there is a danger that by adding you as a named driver onto a parent or friend’s existing insurance, you may put any no claims bonus at risk. However, there are specific policies, such as Provisional Marmalade, which are available for provisional drivers and will prevent this from happening.? Provisional Marmalade will offer you a provisional policy with the promise that if, when you pass your test, you move onto their Young Marmalade plan, they will reward you with a ?100 discount.
There are lots of these around and consequently there are pros and cons associated with using them.? They work by carrying paid links from certain retailers and financial services providers. When you click on one of the links you will be taken through to that company’s website and if you buy a product or service from them, the cashback website will receive commission.? What are the benefits to you? Companies will offer discounts to customers if they access their website via a cashback site, so there are plenty of savings to be had. It’s worth doing your research before committing to any product or service you have found on a cashback site, as there are sometimes instances where the cashback has had tracking issues and it can never be 100% guaranteed.? With this being the case, never choose a policy based purely on the fact it is cheaper on a cashback site.? Find out everything you can about the policy and if it ticks all the boxes, then and only then, go for it.? If you’re still a bit wary about using these sites, you can of course haggle directly with the insurance providers, it’s got to be worth a shot, right?
The most important thing above all else, which will help you get cheaper car insurance, is if you drive sensibly and within the Law.? You may not see the benefits straight away, but providing you drive safely, don’t have any accidents and keep within the speed limit, you will build up your no claims bonus and your insurance premium should get cheaper. The easiest and cheapest way to save you a lot of money.
We’ve all been there. When you first pass your test, you are literally chomping at the bit to buy a new car and get driving out on the open road.? Sorting out ‘boring’ insurance can take a long time, but spending the time to research it fully to find the best policy for you will save you a lot of money in the long run and is well worth doing. Just think, the money you save on your insurance, you could use to save up for that Porsche 911…and it’s insurance!