Motoring costs have soared in 2008 with increases in the cost of fuel, tax and insurance premiums; meaning that keeping a car on the road has never been more expensive. For younger drivers, it gets worse. New plans by the government to increase the tuition period before a learner driver can pass their test means that the cost of getting your licence is also set to increase.
For younger motorists, higher costs will sadly come as no surprise as this age group has been paying higher insurance premiums for years. A lack of driving experience means that they are not eligible for the no-claims discounts that more experienced drivers may be entitled to and they are likely to have higher policy excesses.
As well as a lack of driving experience, younger drivers are also penalised by the insurance industry because of their reputation. This is because young drivers are statistically more likely to have an accident. According to the Association of British Insurers (ABI) http://www.abi.org.uk/, young men aged 21 are 10 times more likely to be killed or seriously injured on our roads than those aged 35 or over. Statistics also show that every day, four people are killed or seriously injured in accidents involving younger drivers.
While insurance will always look expensive to new drivers, there are things that can be done to help keep premiums at a low:
- Avoid modifications: Avoid vehicles with any modifications from the standard manufacture. Even if it’s a second hand car and a modification has been made by a previous owner, drivers will still need to declare this on their motor insurance policy. Adding items such as roof racks or luggage boxes will not generally be considered as modifications by insurance companies. However, with any changes to your vehicle, drivers should call their insurer direct to check whether or not this affects their policy.
- Smaller is better: Choose your car carefully and try to avoid cars with engines over 1200cc; the lower the engine capacity of the vehicle, the lower the premium.
- Shop around for your insurance: don’t accept the first quote that you are given and always try to compare as many quotes as possible. Insurance comparison sites mean that you can now compare more insurance premiums than ever before, and in a fraction of the time. The beauty of using a comparison site as a younger driver is that the insurance companies who are not competitive for younger motorists will automatically be filtered out.
- Do you need a comprehensive policy? Depending on the value of your vehicle, you may want to consider a third party fire and theft policy, rather than a fully comprehensive policy. Drivers will need to be aware though that this type of policy will not cover you if your car is affected by flooding, or if you are involved in an accident where you are at fault.
- Consider your excess: If you increase the amount of excess that you have on a comprehensive motor insurance policy, you can bring your premiums down even further. However, an excess amount is made up of both a compulsory and a voluntary excess. The compulsory excess is set by the insurance company and this amount will vary depending on your circumstances. For example, drivers under the age of 25, drivers with protected no claims bonus or with performance vehicles will find that their compulsory excess will be higher. The voluntary excess is the amount that you choose to contribute towards a claim and by increasing this, you can often lower your overall premium. However, before committing to a policy always check the total excess amount (voluntary plus compulsory) that you will have to pay should you need to make a claim.
- Obtain a Passplus certificate: A PassPlus course can also help to reduce your premiums– this is a course that can be taken once you have passed your test and takes a minimum of six hours. This will generally cover risks such as driving at night, on country roads, on dual carriageways and motorways, and driving in different weather conditions. As well as increasing your confidence as a driver, these courses can help to reduce premiums for younger drivers.
- Add an older driver: Consider adding another older, more experienced driver to your insurance. In some cases, adding a second driver who is over 25 and has a clean licence to the policy can help to reduce premiums if you are a younger driver. However, this will depend on the underwriting criteria for each individual insurer. Some insurance companies will charge for the highest risk driver named on the policy, and it will not matter who drives the vehicle and when.
There are ways to keep insurance costs down but don’t be tempted to alter or omit key information to try and lower your premiums. Being honest with your insurer when you are applying for an insurance policy is essential.
For younger motorists, higher costs will sadly come as no surprise as this age group has been paying higher insurance premiums for years. A lack of driving experience means that they are not eligible for the no-claims discounts that more experienced drivers may be entitled to and they are likely to have higher policy excesses.
As well as a lack of driving experience, younger drivers are also penalised by the insurance industry because of their reputation. This is because young drivers are statistically more likely to have an accident. According to the Association of British Insurers (ABI) http://www.abi.org.uk/, young men aged 21 are 10 times more likely to be killed or seriously injured on our roads than those aged 35 or over. Statistics also show that every day, four people are killed or seriously injured in accidents involving younger drivers.
While insurance will always look expensive to new drivers, there are things that can be done to help keep premiums at a low:
- Avoid modifications: Avoid vehicles with any modifications from the standard manufacture. Even if it’s a second hand car and a modification has been made by a previous owner, drivers will still need to declare this on their motor insurance policy. Adding items such as roof racks or luggage boxes will not generally be considered as modifications by insurance companies. However, with any changes to your vehicle, drivers should call their insurer direct to check whether or not this affects their policy.
- Smaller is better: Choose your car carefully and try to avoid cars with engines over 1200cc; the lower the engine capacity of the vehicle, the lower the premium.
- Shop around for your insurance: don’t accept the first quote that you are given and always try to compare as many quotes as possible. Insurance comparison sites mean that you can now compare more insurance premiums than ever before, and in a fraction of the time. The beauty of using a comparison site as a younger driver is that the insurance companies who are not competitive for younger motorists will automatically be filtered out.
- Do you need a comprehensive policy? Depending on the value of your vehicle, you may want to consider a third party fire and theft policy, rather than a fully comprehensive policy. Drivers will need to be aware though that this type of policy will not cover you if your car is affected by flooding, or if you are involved in an accident where you are at fault.
- Consider your excess: If you increase the amount of excess that you have on a comprehensive motor insurance policy, you can bring your premiums down even further. However, an excess amount is made up of both a compulsory and a voluntary excess. The compulsory excess is set by the insurance company and this amount will vary depending on your circumstances. For example, drivers under the age of 25, drivers with protected no claims bonus or with performance vehicles will find that their compulsory excess will be higher. The voluntary excess is the amount that you choose to contribute towards a claim and by increasing this, you can often lower your overall premium. However, before committing to a policy always check the total excess amount (voluntary plus compulsory) that you will have to pay should you need to make a claim.
- Obtain a Passplus certificate: A PassPlus course can also help to reduce your premiums– this is a course that can be taken once you have passed your test and takes a minimum of six hours. This will generally cover risks such as driving at night, on country roads, on dual carriageways and motorways, and driving in different weather conditions. As well as increasing your confidence as a driver, these courses can help to reduce premiums for younger drivers.
- Add an older driver: Consider adding another older, more experienced driver to your insurance. In some cases, adding a second driver who is over 25 and has a clean licence to the policy can help to reduce premiums if you are a younger driver. However, this will depend on the underwriting criteria for each individual insurer. Some insurance companies will charge for the highest risk driver named on the policy, and it will not matter who drives the vehicle and when.
There are ways to keep insurance costs down but don’t be tempted to alter or omit key information to try and lower your premiums. Being honest with your insurer when you are applying for an insurance policy is essential.
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