Though the key to finding a cheap deal may be to compare car insurance online, there is no guarantee for youngsters that they will find an affordable quote.

The October 2009 edition of the AA’s British Insurance Premium Index indicated the scale of the problem. While car insurance premiums increased across the board, prices for third party, fire and theft car insurance, which is traditionally bought by new and young drivers, sky rocketed by 9.3 per cent over the prior three months alone to average £1,059. So while car insurance premiums are rising at their fastest rate for 15 years for all motorists, it is young drivers who are bearing the brunt of the increases.

Why are young drivers being hit so hard?

Insurers measure premiums based on risk levels – your perceived risk as a driver could be affected by your personal circumstances, your driving record, the vehicle you drive and more.

In the case of young drivers, they pay the price for the reputation of their peers – statistics show that young motorists, particularly those under the age of 25, are simply more likely to make a claim on their insurance than other age groups and they are penalised as a result.

For example, figures obtained by the Driving Standards Agency Press Office in 2008 reveal that one in eight car licence holders is under the age of 25 – yet one in three drivers who die on the UK’s roads fits into this age group. The Driving Standards Agency also reveals that an 18-year-old is three times as likely to be involved in a crash as a 48-year-old and one in five new drivers has a crash within six months of passing their driving test.

Young male drivers are hit particularly hard by insurance companies, and again the statistics back up their decision making. Statistics from the Centre for Transport Studies at the University College of London in 2005, highlight that young men take more risks behind the wheel than young women and young male drivers aged 17-20 are seven times more at risk than all male drivers.

So how can young drivers get affordable car insurance?

New and young drivers should carefully assess the level of car insurance cover they need before they apply. Third party car insurance covers injuries to others, damage to their property and liability while towing a caravan or trailer but will not protect you or your vehicle in the event that an accident occurs. However, if you are driving a car with a relatively low value you may be willing to sacrifice this additional cover to find an affordable quote – you can then build up a no-claims discount allowing you to afford more extensive car insurance in the future.

If you opt for comprehensive cover then choose your options carefully. Don’t pay for aspects of cover that you simply don’t need. For example, there is no need to be covered for ‘commuting’ or ‘business’ driving if you only use a car for social purposes.

Think about the car that you’re driving too – especially if you are yet to buy. Use the Association of British Insurers’ database to see which vehicles fit into the lowest insurance groups, as these are the cheapest to insure. As a rule of thumb, insurers prefer cars with small engines and standard specifications – so think conventional and avoid modifying the vehicle.

Remember too that it is crucial to shop around for car insurance. Though you may assume that car insurance is high across the board for young drivers, there can be significant differentials between insurers – potentially in the region of hundreds of pounds. So ensure you use a comparison website to gain an overview of the quotes available before deciding on the best policy for you. Most insurers also offer their cheapest rates online due to the savings they make on overheads.

Once you have found a competitive deal, remember that there may be further ways to save as most insurers will offer discounts for reducing your risk level. These can include:

• Rapid bonus schemes: Available to young drivers within their first year of motoring, these offer a full year’s no-claims discount in less than 12 months.
  
• Pass Plus discounts: Insurers may be willing to slash premiums by as much as 35 per cent if you complete the Pass Plus course, which offers advanced training in aspects of motoring such as motorway driving.
  
• Security: Increasing the security of your car by adding alarms and immobilisers, and by parking in a garage overnight, could help you save.
  
• Increasing your excess: Setting the voluntary excess at a higher level will cost you more in the event of an accident but could cut your insurance premiums.
  
• Limiting your mileage: If you don’t drive too far, then consider agreeing to a mileage limit with your insurer.
  
• Adding a parent: Adding a parent or more experienced motorist as a ‘named driver’ on a policy could cut premiums. However, don’t ask another motorist to front a policy for you as this is considered fraud.

 

Call now to book your Pass Plus course and improve your driving skills. Many insurance companies will offer up to 30% discount on your first years insurance.

029 2031 5355 or 077 6453 0915