The average cost of insuring a new, young driver – under 25 years of age – is over £1,000 and often significantly higher. This isn’t a cost that many young drivers can afford and quite often it is what puts people off from learning to drive in the first place. There are ways to reduce that cost and this month we have picked our favourites to help young drivers navigate their way around and find suitable insurance cover for them that won’t cost the equivalent of two or three month’s wages.
Comprehensive vs third-party
While it used to be that third-party cover was cheaper, that is no longer always the case. It is worth checking both when looking for quotes and you may be surprised by the difference in price in some cases. Third-party cover is typically chosen by new and younger drivers, who statistically are more likely to make a claim in their first twelve months, so insurers may be charging more.
Using a tracker placed in the car, usually in a black box, insurers are able to calculate premiums based on actual risk as they have a clearer idea of how you drive, as opposed to a generic risk applied across the board. This is perhaps the best way of making significant savings on your insurance premiums.
Increasing your excess will help to lower premiums. Be sure to find the balance between what is affordable now and what you may have to pay out should you have an accident. With little spare cash and greater chances of claiming for an accident in the first year of driving it is something that needs careful thought before committing to the highest excess allowable on a policy as it could turn out to be more expensive in the long run.
Another way to drop your premium is by adding a named driver. This is typically someone who is older and who has more driving experience. It could be a parent, so long as they are the named driver and the policy is not in their name instead as that is illegal. Avoid anyone who has points on their licence.
While it may be cooler to have a car with alloy wheels, steering clear of modifications may not help with your cool image, but it will benefit your pocket. Similarly, avoid fast cars. Both will attract higher premiums, in some cases significantly.
Do add safety features
Certain modifications may actually be beneficial – such as alarm systems or immobilisers. They are seen as ways of minimising the risk of theft and as such will attract lower premiums. Similarly, parking in a garage or driveway instead of leaving your car on the street overnight can also help to lower premiums.
It may seem like a big amount of money to pay in one go, but it will be quite a bit cheaper than paying monthly as that attracts additional fees. And don’t auto-renew when the time comes around. You’re more likely to find a cheaper alternative than not, so it’s always worth shopping around.
If you are considering taking a driving course or want a refresher course after being off the road for a while get in touch with us at Lanes School of Driving. We have over 100 years of experience in getting drivers on to the road so we’re sure we can help you too. All you need to do is give us a call on 020 8166 5678.