You've passed your test! Congratulations. You've found your dream car. Amazing. But now the next question is - how do I pay for its insurance?
Whilst the average lowest car insurance premium for a 17-year old driver has fallen by 48.8% since 2012, the cost of car insurance constitutes over a quarter (29%) of the total ‘new driver’ bill and 36% of parents said the cost of car insurance for their child was far greater than expected with 45% indicating that the cost of car insurance was a major concern. 11% said their child has delayed getting a first car specifically because of the cost of insurance.
However, choosing the right first car can considerably reduce insurance costs for young drivers.
Here are some money-saving tips to help younger drivers pay less for their car insurance
Choose a sensible car - Young drivers’ insurance premiums will be lower if they drive a standard car with a small engine (under 1000cc) in a low insurance group. It makes sense to drive something smaller and slower until they’ve built up some no claims bonus and have shown a safe driving record. Also, avoid cars with modifications, as they can push the price of insurance up.
Analysts at GoCompare found that the average lowest car insurance premium for all quotes generated by drivers aged 17 to 24 was £1430. However, the average lowest premium for a Peugeot 108 valued at between £3,400 and £3,600 was £802.
Consider opting for a higher excess – This may lower the premium, but you will need to decide if paying a slightly lower premium is worth the risk of having to contribute more towards the cost of a claim if you have an accident.
Select a ‘telematics’ policy – Some policies require your car to be fitted with a ‘black box’ transmitter and others do a similar job with a smart phone app. In both cases the idea is that your driving is monitored by the insurer and your premiums can come down faster than with a traditional policy if you prove to be a safe driver.
Added extras – consider whether you really need added extras such as a courtesy car, legal assistance, breakdown cover and key cover. Some policies include these types of cover as standard or as add-ons but they’re not free. The cost will be built into the premium, so you may be able to save money by removing them or choosing a different policy without all the bells and whistles.
Adding a safe driver – Adding another named driver with a clean licence and several years claim free driving to a young driver’s policy could reduce their premium. This is one way a parent can help their child to get lower premiums without breaking the law.
Drive safely – By being careful on the road you will avoid accidents, fines and penalty points, all of which will affect your insurance premium.