Given that you have passed you car driving test at the age of 17, you’re likely to be very keen to take off the L plates. But that keenness can quickly dissipate as you start to receive the car insurance quotes for your vehicle.
Mandatory ut not for repairs on your own vecar insurance
Statistically speaking, 1 in 5 drivers have an accident in the 1st year on the road and 26% of vehicle accidents involve at least one driver being between the age of 17 and 24. Hence given the high risk, the premiums for young drivers is high and it’s a compulsory requirement for all drivers in the UK to have car insurance cover.
The minimum legal requirement is for all motorists in the UK is to have third party car insurance cover, which pays out for claims made against you but not for repairs on your own vehicle. Other options include third party fire and theft car insurance which also pays out if your car is stolen or damaged in a fire. Finally comprehensive car insurance cover is the most popular type of motor insurance. It includes injury/damage payout for you and for anyone making claims against you. The policy can sometimes also include extra benefits such as legal expense insurance in case there is a dispute.
For young motorists aged 17, third party cover is likely to be the cheapest but this is not always the case and in some instances the difference is very small so it’s probably worth upgrading the cover.
Moreover, if you car is old and is not worth much then third party cover is probably adequate as the insurance company will cover the cost of the other party and you can drive legally.
Advanced driving course
Many experts recommend that young drivers should improve their road skills by enrolling into an advance driving course. By completing a recognised driving course, you would become a safer driver on the road and hence insurers will offer a discount for the reduced risk of a claim.
Out of all the advanced courses, the most popular is the Driving Standard Agency’s Pass Plus scheme. But institutions such as Royal Society for the prevention of accidents, also the institute of Advanced Motorists and the RAC offer a similar course.
In most cases you will be required to pay for the advance driving course, but your local council may contribute towards the cost and the discount in premiums might offset the initial cost of the course.
No claims discount
If you don’t claim from your car insurance company, then you will earn a no claims discount/bonus in the following year. These discounts add up year on year and in some instances can lead to up to 80% discount off the premium.
Given that the discount is likely to substantial depending on the number of claim free years, for minor accidents it might be worth paying for the damages yourself. In many cases you can even choose to protect your no claims discount but you will have to pay more of a premium and it will be limited to a certain number of claims.
Remember, the no claims discount is transferable between different car insurance companies, so if you compare and find a better deal elsewhere, you should change your insurance provider to the one which best suits your needs.
Parents and guardians
Many young drivers are able to drive legally by being the named drivers on their parent’s policy. But if you have your own car, then it’s advisable to add your parents as the named driver. This will reduce the premium on your car as the insurer is reassured that a more experienced driver will also be using the vehicle in some instances.
But remember to always be honest with your car insurance company, if you are the main driver but you put your parents as the main driver in the policy to reduce the premium then this is known as fronting and is illegal.
Thanks to the enhancements in technology, some insurance companies now offer telematics insurance, which requires for the insurance company to install a black box/tracking device in your car. This box will then transmit information such as speed, acceleration, time of travel etc to the insurance company who quote the premium accordingly. So if you often drive on the motorways, during night time hours then your premium will be high as the risk of an accident is also high.
Money saving tips
Insurers offer customers the opportunity to pay their premium as one lump-sum or to have it spread on a monthly basis, but there is in fact a difference between the two options with paying upfront working out to be cheaper. Perhaps as a young driver, paying monthly is more affordable but you will still have to put forward a deposit and there may be an admin charge.
To add, the car you wish to ensure also has a massive impact on your car insurance. Typically cars group categories 1 are cheaper to ensure then cars in category 50. To learn more, you can visit www.thatcham.org.
Moreover, you can enhance the security features of your vehicle by perhaps adding an alarm or an immobiliser. If possible you should also park the car in a garage as appose to on the road when it is kept parked overnight. This will reduce the risk of theft/damage and hence, the premiums will reduce.
Further savings can also be made by increasing the level of excess on your policy. The excess is the amount you volunteer to pay in case of a claim. For example, if the voluntary excess is £100 and the insurance payout is £400, then you will only receive £300 towards your costs. Should you decide to increase the excess, the risk for the insurer effectively reduces and hence premiums should fall. But remember to have the excess at an affordable level; else you will be left in a financial difficulty when making a claim.
Compare Car Insurance Providers and Save Up to £200