Young driver car insurance - how to reduce your premium
The Department of Transport reports that there were nearly 250,000 road accidents leading to casualties during 2007, with nearly 3,000 people killed. It is estimated that around 25 per cent of these accidents were caused by reckless driving such as driving under the influence, tailgating and aggressive behaviour.
 Unfortunately a large portion of these accidents were also caused by young people ˆ with 18-year-olds said to be responsible for three times as many road accidents as drivers in their 50s. Even though only 17 per cent of drivers are aged under 25, they account for around a third of all car
insurance claims and this high accident rate makes them a bigger risk to
insure than older, more experienced drivers.
How can young drivers secure competitive car insurance?
In 2008, several car insurance providers, including the likes of AXA and Swiftcover, stopped offering quotes to 17-year-olds altogether because of
the risks involved. However, there are still a number of options available
to young drivers with many car insurance companies offering policies that
are specifically designed for young motorists hoping that they will remain
loyal to them for years to come.
Some of the providers that offer policies designed for young people
include:
17-24 Car Insurance
Has policies for provisional drivers with discounts for completing the Pass
Plus course.
AA
A discount of up to 35 per cent for completing the Pass Plus.
Endsleigh
Covers both provisional drivers and new motorists with Pass Plus discounts and the chance to earn a no-claims bonus in your own name. This insurer is approved by the National Union of Students.
Norwich Union
Includes a rapid bonus scheme allowing young motorists to earn a full year`s no-claims bonus in nine months.<br><br>
According to an analysis of quotes taken from a car insurance comparison website, Kwik-Fit and Swiftcover were the cheapest insurers for all drivers
in the UK with average premiums of £277. However, they may not be the
cheapest for young drivers who traditionally face much higher premiums. As
such, young motorists should shop around and also do all they can to keep
their premiums affordable.
How young drivers can reduce their car insurance premium
There are several ways a young driver can keep their premiums affordable,
including:
Drive the right car
Vehicles with smaller engines and low insurance groups are cheaper to
insure, as are older vehicles ˆ premiums drop when a vehicle reaches five
and then ten years old.
Car usage
Be clear about how you will use the car. Most insurers offer "social,
domestic, personal use and commuting". However, if you do not use the car to
travel to work each day you will not need the commuting option and this will
reduce your premium.
Improve security
Fit a car alarm, immobiliser and other security devices to deter thieves and
earn discounts.
Limit your mileage
If you only need the car for limited periods of time, perhaps when term time
is over, then agree to a mileage limit. You could cut premiums by five per
cent by agreeing to drive no more than 12,000 miles a year.
Pass Plus discounts
Insurers may offer discounts as high as 35 per cent if you complete the Pass Plus course within 12 months of passing your driving test.<br><br>
Pay annually
You can cut out interest charges in the region of 20 per cent by paying annually rather than by monthly instalments.<br><br>
Rapid bonus schemes
Earn a full year`s no-claims discount in around nine months with a rapid bonus scheme.
Above all, for cheap young driver car insurance use a comparison website to compare quotes and make
sure you`re finding the cheapest deal for your circumstances.
(The product information quoted was available at the time of writing - 20.11.2008 - and is subject to change)
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