The excitement of passing your test is one that any new driver will remember for a long time – but the shock comes when we realise the cost of insurance. Unfortunately for young drivers, it’s not cheap. Statistically, young drivers are seen as inexperienced and this inexperience means costs go up. It’s pretty unfair, and can put a dampener on the excitement you’re feeling of being a new driver. But before you put your licence away and claim you’ll never be able to afford to drive, read on. We’ve pulled together ways for you to save a pretty penny on those insurance prices.
Consider the car you’re buying
Before parting with your cash for the car of your dreams, it’s always wise to check out how much it’s going to cost to insure. Some cars will cost more, so even if you’re saving on the car itself – it can cost you more in the long run. There are no hard and fast rules to how much a car will cost to insure, because it depends on your circumstances too, for instance where you live! If you’re in the market for a new car but you’re not sure on the cheapest option all round, check out our guide on cars in low insurance groups
, to help give you some ideas.
Car insurance on a whole is based on risk. The higher the risk, the more your insurance will cost. We said in the beginning that young people are deemed as high risk which means higher insurance costs, but what if you were to be priced on your driving ability, and not the stereotype of all young people? Black boxes are a great way to get your insurance premium to be based on how you drive. It monitors your driving so when it comes to renewal, you’ll be priced on how well you’ve driven. Drive well and you save money – drive dangerously and it may cost you!
You may be able to think of two or three insurance providers off the top of your head and plump for one of them for your insurance policy, but this isn’t always the best way to save money. Spend some time shopping around on comparison sites as well as other insurance companies who aren’t on them. Taking a bit of time and doing some research should help you save!
Named drivers are great, but beware of fronting!
A great way of bringing costs of your insurance policy down as a new driver is to add a more experienced motorist on to your policy. Putting mum or dad onto your policy who have more years driving experience than you will likely see you saving money – even if they don’t drive the car! However, if they do have points on their licence, you should probably avoid adding them.
When adding a parent onto your policy, remember to always put them as a named driver with you as the main driver (because that’s what you’ll be!) Doing this in reverse (them as the main driver) is known as ‘fronting’ – not only is it illegal, it means an insurer will likely reject your claim should you need to make one.
Pay per year, not per month
When you take out your insurance policy, you’ll generally be given the option to buy all in one go or to pay it monthly. If you decide to pay monthly, this will cost you extra because you’ll have to pay interest on it – essentially you’re borrowing the money! If you can, paying all in one go will save you paying those interest prices that come with the monthly pay option.
With that being said, not every young driver has their hands on all of the money to pay it off. Perhaps ask a parent if they could lend it to you and you pay them back monthly – I’m sure they’ll let you pay off their ‘interest’ with road trips in your car!
Steer clear of car modifications
Car modifications are a sticky issue when it comes to car insurance prices. A lot of insurers will add to the cost of your insurance for car modifications, and others simply won’t offer you cover at all – which means you’ll likely end up paying more because you’ve get less insurers to choose your cover from. Save money by keeping the car to the factory standard.
Third party isn't always cheapest
When it comes to the type of insurance cover you’ll be looking at, there are generally different options available – and you’d be forgiven if you think that minimum cover equals minimal costs. Getting comprehensive cover can often be cheaper, because the insurer will see you as a responsible driver. It’s always best to check out your options when it comes to cover and if you are confused by the differences, have a look at our blog
all about it.
Why do prices vary?
Insurance prices depend on the risk factor of each person. Quotes are based on so many different things from your age, the car you drive, and where you live. It can be frustrating if your friend who lives 5 minutes away has a cheaper insurance price to you, but that’s because their risk factor is different to yours. Whilst it may be tempting to alter your quotes on things like where you live or what your job title is, if your policy doesn’t reflect yourself accurately – your insurer can refuse to pay up if you need to make a claim, and that definitely won’t save you any money – in fact you’ll likely be much more out of pocket!
And there you have it, 7 different ways to keep your insurance costs as low as possible! Now we know that insurance prices for young people aren’t the cheapest, but these are great ways to save money. Don’t forget that after the first year of driving, if you opt for a black box, good driving scores will see you save money. What’s more, if you don’t have an accident in the first year, a years no claims bonus will be yours – and you’ll be on your way to saving even more!
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