car insurance - keep costs down
The big question is how can young drivers keep their car insurance costs down espicially in the first year after passing the driving test? There are many simple things you can do and there are ways of spreading the cost by paying monthly installments - you can now even get 'pay as you go' car insurance.
Young drivers pay more for their car insurance than those aged over 25, usually much more - however, there are ways to keep insurance costs manageable:
Add a parent
Add an older, more experienced driver as a `named driver` on your policy and you could save around five per cent on insurance. But do not name them as the 'main driver' unless they really are - this would be 'fronting'.
Drive a conventional car
Don`t make your first car a high performance sports car - if you do, you`ll pay through the roof for insurance. Keep your car choice conventional and choose a car with a small engine. Make sure you are driving a car with a low insurance group, preferably in group 1 to 5 (under the new 50-group system), the lower the better.
Drive at the safest times of the day
I-kube offers a lower cost alternative to conventional car insurance for young drivers by limiting their exposure to driving at high-risk periods.
They say that you'll save 40% by not using your car between 11pm and 5am (you still can use it but you'll pay a £60 fee each time you do).
Drive safely
It may go without saying but the best way to earn cheaper car insurance is to avoid making claims so stay safe on the road and don`t pick up any driving convictions.
Avoid modifications
Avoid upgrades to vehicle performance, styling or audio as these are frowned on by insurers.
Rapid bonus scheme
Some insurers allow you to earn a full year`s no-claims bonus in nine or 10 months during your first year - see below to find out who does.
Take the Pass Plus
The Pass Plus course is available to new drivers and costs more than £100 - however, some insurers will cut premiums by around 35 per cent if you complete the course so it could be financially beneficial. Some local authorities will also contribute towards the cost of the course.
Buy a car and Insurance Package
Take a look at the Young Marmalade car and insurance scheme which could save you money overall and get you driving a safer car into the bargain.
Plan your spend
Your first insurance premium will probably take you by surprise and many people find it difficult to pay the whole premium up front. Most insurance companies will let you pay in montly installments but they will make a charge for doing so. You can get 'pay as you go' car insurance but this is not aimed primerily at young drivers, it is aimed at people who expect to use a car only for a short length of time.
Where can you find young drivers car insurance?
There are several car insurance providers that specialise in providing young drivers car insurance, including:
I-kube GPS-based young drivers car Insurance Scheme
I-kube say that you'll save 40% by not using your car between 11pm and 5am. You still can use it but you'll pay a £45 fee each time you do.
Endsleigh
A NUS approved insurer that includes a 20 per cent Pass Plus discount and provides policies for provisional drivers.
They also offer the Student Bonus Accelerator – a 6 month policy that’s designed to help you build your No Claims Discount quicker, which could save you a lot of money. You can earn you the discount equivalent to a year’s NCD after just 6 months and it’s available on Third Party, Third Party Fire and Thef- and Comprehensive- policies.
ecar Insurance
eCar Insurance Pay As You Go monthly policy allows you to purchase cover as and when you need it - on a monthly basis for a monthly premium. You can purchase cover one month at a time and then switch it off when it's not required.
- Cover up to 4 drivers on 4 different cars at excellent rates.
- Earn 1 year's No Claims Discount for only 8 months' claim free cover.
- Maximum No Claims Discount guaranteed for life.
- The monthly rate you are quoted will be guaranteed for 8 months providing no changes are made.
Tesco Car Insurance
Have a very good track record of offering low insurance quotes to young drivers.
TheAA
Includes discounts up to 35 per cent for completing the Pass Plus.
Collingwood Learner Driver Insurance
Collingwood's Learner Driver Policy offers comprehensive insurance covering learner drivers whilst accompanied, driving a vehicle specified on the policy, that could be your parents, grandparents, friend or any other relatives car.
Aviva (used to be Norwich Union)
Features a rapid bonus scheme allowing young drivers to earn a full year`s no-claims discount in 10 months.
Adrian Flux
Offer policies tailored to the needs of young drivers. They offer discounts if you've taken
PassPlus or IAM training and specialise in modified cars.
My Motor Quote
Driving a family member's car for a year or longer can result in you being granted the equivalent no-claims bonus based on this driving experience. Specialist young driver insurance brokers, such as My Motor Quote, can advise you on this subject.
The key is to shop around and compare quotes from these and other car insurance providers to ensure you`re getting a competitive deal. Find out how to use Price Comparison sites at MoneySavingExpert to get the best possible deal .
Dos and don'ts for young drivers
Here are some important considerations for before, and when you get behind the wheel:
- Don't: Ask a parent to 'front' a policy for you. If the named adult is the main driver then all is well but if you will be the main driver then this is called "fronting" and it's illegal. The Financial Ombudsman estimates that over 1000 claims a year are investigated and the number's rising.
- Do: Add a parent as a named driver. This will usually help lower your insurance premium.
- Don't: Tailgate.
- Do: Leave a safe distance between you and the vehicle in front of at least two seconds (double this in bad weather).
- Don't: Speed.
- Do: Stick within the speed limit and pay extra care when driving near schools, shops etc. Be especially careful when driving at night - a large proportion of serious young driver accidents happen after dark.
- Don't: Give in to peer pressure.
- Do: Drive in your own time and at your own pace.
- Don't: Drink and drive.
- Do: Have a designated driver on nights out.
Be smart - save money on your car insurance and put cash to good use on buying the best car in the first place and getting yourself some additional driver training.
