As a young driver it can be difficult securing cheap car insurance. To help with this we have created a guide which may help you with the process. If you’re a teenage driver who has just passed your practical driving test, chances are you can’t wait to get behind the wheel on your own. However, there is still one roadblock to pass – securing car insurance without paying over the odds.
Why teenagers pay more for car insurance
Young drivers face sky high insurance costs when they first get behind the wheel. This is due to a number of damning statistics including those from the AA which point out that one in five young drivers has an accident within their first year of motoring and young drivers are 10 times as likely to be involved in a serious collision as more experienced drivers.
Of course this doesn’t mean that all new teenage drivers are reckless behind the wheel, and there are calls for the industry to recognise the efforts made by young people to prove they are responsible motorists. However, any changes may take time to implement.
Due to the high costs of comprehensive car insurance for new drivers, many teenagers prefer third party fire and theft policies during their first year of driving to keep their premiums affordable. However, according to the AA British Insurance Premium Index the cost of these policies rose by 4.6 per cent from April-June 2009 to an average of £968.22 – still much too costly for most.
Can parents help?
In a bid to drive down car insurance costs, many teenagers ask their parents to ‘front’ a policy for them – with the teenager appearing as a named driver, believing this will keep their premiums low. However, this tactic, known as ‘fronting’, is illegal and if caught it will invalidate an insurance policy and the driver may face court action.
If you think the chances of being caught are slim, then think again. The Association of British Insurers has reported a 24 per cent rise in cases of fraud and as such insurers are cracking down with all new policyholder details run through a shared industry database to detect any mismatch in addresses, credit card details or undisclosed claims.
So how can teenagers save money on car insurance?
Thankfully there are several legitimate ways to save money on car insurance, including:
Car choice: If you haven’t bought a car yet then choose a vehicle with a smaller engine and with no modifications for lower premiums.
Security: Parking in a garage at night and fitting alarms and immobilisers can drive down premiums.
Pass Plus: Teenagers can take the Pass Plus course as soon as they complete their driving test and with some insurers this could slash premiums by as much as 35 per cent.
Rapid bonus schemes: Some providers offer rapid bonus schemes allowing teenagers to earn a full year’s no-claims discount in around six-nine months.
Limited mileage: If you use a car infrequently consider agreeing to a mileage limit to keep your premiums down.
The key to cheap car insurance however, is to shop around using a comparison website. According to the AA British Insurance Premium Index the average premium for those who compare quotes on third party fire and theft cover is £669.67 – nearly £300 less than the average for those that don’t shop around.
