Every age is meant to have its compensations, but for young people the cost of car insurance isn’t one of them.
Insurance is all about risk, and the bottom line is that young drivers are more expensive to insure because, according to some estimates, they are eight times more likely to make a claim than those who have been driving for a long time.
Pocket money prices
If you’re new to the road, then it’s unavoidable that you’re going to have to pay a larger premium than after you’ve been driving for five years without making a claim. This isn’t to say that you need to be ripped off by your insurance and there are number of things to bear in mind when you’re looking for the best insurance deal.
This may sound obvious, but if you want to avoid paying for a hefty premium then avoid a run in with a speed camera. On top of the fine and penalty points you will rack up, your insurer is likely to take a particularly dim view if you get caught speeding as a young driver. Increased speeds, means increased risks and young drivers are proven to account for a higher number of accidents.
Horse power charge
In a similar vein, if you’re a younger driver thinking about buying a car then opting for one with a smaller engine could make financial sense.
The more power you have under the bonnet, the more nervous your insurer is going to get.
King of the road
If you can demonstrate to insurers that your driving skills are second to none then they’re much more likely to offer you a better deal on premiums.
The Pass Plus test has been set up by the Driving Standards Agency to allow new and young drivers to take their driving skills to a higher level. These courses don’t come cheap and you could have to invest a couple of hundred pounds to gain the qualification. Long term however, you should make a significant saving on your insurance.
The name game
It’s possible with many policies to be put on to your parent’s insurance policy as a named driver. This means that the cost is spread and with many policies young people can build up a no claims bonus despite not being the main driver on the policy.
This means when you want to take out your own insurance policy you’ll be able to prove that you have a no claims record.
Nice and niche
There are plenty of insurers out there who specialise in insuring young people and they aim to offer the lowest rates around. Their offers will be worth a look but when you’re searching for car insurance be sure to cast your net as wide as possible.
Remember that shopping online will normally save you at least 10%. It’s always important to read through the terms and conditions of any policy you’re thinking about taking out to be sure that the level of cover is sufficient and that you have total peace of mind.