Young Drivers Car Insurance Advice

Great Advice, Concessions, Cash back & Extras

The typical cost of insuring a young driver who is below 25 is unbelievably high – £2,300. Just because you are a young driver; it doesn’t mean that you have to pay rediculously high prices for insuring your car – afterall most young drivers are not wreckless and careless behind the wheel and shouldn’t be descriminated against to the degree of having to pay over £2,000 for a year’s worth of car insurance. Unfortunately many insurance providers automatically presume that youth means inexperience, which in turn means higher risk and higher premiums.

Still, there’s some practical steps that young drivers can take to reduce insurance premiums, such as completing the government approved Pass Plus certificate – which can save you as much as 30%, or opting for a six month ‘starter policy’ to help build up your no claims bonus. Even something as simple as investing in a steering lock can pay financial dividends.

This simple guide will help young drivers make comparisons between more than 100 insurance providers in a matter of seconds whilst also comparing many insurers on comparison sites such as Confused.com, with specific methods of searching through insurance sites quickly.

Ensure that you always decrease your risk

Regardless of being a young driver, insurance premiums (payments made to insurance companies) are dependent on three factors:

  1. Level of Cover
  2. Your Level of Risk
  3. Chosen Driver

“You can lower the price you pay if you lower an insurer’s opinion of your risk”.

Car insurance tariffs are fixed by actuaries, and it’s their job to measure risk. You should make sure you’re a minimal risk to them, plus you could make huge savings by revealing to an insurer that you’re not the standard high-risk young driver. Insurer’s prices are governed by two things: initially, the underwriters’ judgement of your exact risk weighting, and secondly, it’s the pricing model, which determines the sort of customers the insurer wants to appeal to.

Park and drive cautiously

Theft and accidental damage adds a huge chunk to your insurance costs.  A major way of preventing theft is to leave your car in a garage or driveway.  It also means that accidental damage is less likely to occur. The end result is a 3% – 7% deduction in the total insurance cost.

In addition, the more points you have on your licence, the higher the cost. Even though speeding points remain on your licence for four years, insurers generally check for convictions throughout the last five prior to removing them from your record.

One speeding conviction might only alter the cover price by approximately 5%; however, any more will definitely increase the price.  For example, two offences mean that you will have to folk out about 20% more.

Getting caught talking on a mobile phone is much more severe – it can cost you twice as much as the original quote. You could also get three instant points on your licence that stay on for four years. If used correctly approved hands-free kits are acceptable.

Fit a security device in your car

Installing an alarm or immobilizer, particularly one approved by Thatcham, will lower the cost.

Take supplementary driving courses

PassPlus– is designed by the Driving Standards AgencyPass.  It aims to help new and young drivers increase their confidence on the road. There are six modules about driving in different conditions: town driving, all-weather driving, driving out of town, night driving, driving on dual carriageways and driving on motorways.

The course costs are about £200 although fluctuates subject to your area of residency and the instructor/driving school you select. In spite, particular local councils offer 50% reductions, generally for under 25′s.  It simply costs £20 in Wales (establish if your council is taking part).

A few insurers discount the price of your insurance after you obtain the certificate, (see the list). There’s a greater chance you could get cheaper cover elsewhere because unfortunately, over the last few years, the discounts have got less and less because the certificate is not well recognised.

Drive iQ: Drive iQ is a new online course for learner drivers, which combines online learning with practical lessons. It is delivered by the AA and independent driving schools and costs £150.  You have to pay for your driving lessons on top.  After completing the course, you will obtain an Edexcel accredited BTEC level 2 award in Driving Science.  You’ll have access to graduate insurance rates and quicker no claims bonus.

The course includes 5 units and covers thoughts and conduct to driving, instead of just car control skills.  All the units incorporate motorway and night driving. You are entitled to special insurance deals after you have passed, although enquire about your quotes with Drive IQ prior to signing up to realise how it competes.

Reduce your mileage

Your insurance will be cheaper the less you drive.  Try and lower your mileage where it’s feasible. This is going to sound clichéd, but I’m going to mention it anyway.  The real secret is merging the additional insurance cost when you take extended trips, not just the cost of petrol in comparison to taking the bus or train.

Anecdotal evidence states that most people get a quotation for 10,000 miles per year solely. Nonetheless, MoneySavers have reported that 5,000 is the best figure to use, although it hasn’t been tested yet. If you drive your vehicle on business, you must always declare if you drive your vehicle on business this rather than just include the business miles as personal, or the policy may be void.

Third party insurance is not always less expensive compared to comprehensive

At this point it is essential to realise that there are three types of car insurance that are not the same: third party, third party fire and theft, and fully comprehensive.  The meaning of each are provided below.

Third party insurance is understandably supposed to be the cheapest for young drivers because it provides a reduced level of cover than fully comprehensive; however, this isn’t always true. Therefore, get quotes for third party and fully comprehensive in case it’s cheaper. And, constantly ensure you check your policy so you understand precisely what you are and are not covered for if you have to put in for a claim.

It’s likely that third-party buyers are typically a higher-risk group, maybe because they are not as much concerned about their cars in general, and therefore prices are shoved up. To clarify this point, we found £290 for fully-comprehensive, compared to £406 for third-party in one low-risk driver quote we found.

Third Party

Third Party young driver’s car insurance is the least amount of cover you legally need to be allowed to drive on the road.  Even though it used to be the cheapest type of insurance, nowadays the situation has changed.  Strangely, fully comprehensive policies can occasionally be cheaper.

Third Party covers you for any damage you cause to another person’s vehicle, and gives protection for any passengers in your car.

This means, you will have to pay for any repairs to your own car yourself if you’re in an accident and it’s your fault, because your insurance will not cover it. It might be more costly because it is presumed you don’t care as much about your car, consequently, you are more prone to having a crash.

It is largely appropriate for persons:

  • With cars valued at less than £1,000
  • Aged under 25
  • With no No-Claims Bonus
  • Residing in a high risk area

Third Party Fire and Theft

Third party fire and theft has equal level of cover as third party insurance. But, it also obviously has the extra cover of help if your car is robbed or set on fire.

Fully Comprehensive

This is the broadest level of cover, and can occasionally be the cheapest. The major benefit is that if an accident is your fault, you will be able to do three things:  claim the cost of fixing your car; cover personal injury costs, and the costs sustained to other drivers.

The cover also includes accidental damage and vandalism.  For example, if somebody damages your car when it is parked in the street and then drives off.

In addition, if you’ve got the permission, you will frequently (though not always, so do check your policy details carefully) be able to drive other people’s cars, but this will probably be Third Party only. Occasionally, you will be covered for driving hire cars as well.

Fully Comprehensive insurance is a great idea providing your vehicle is valued over £1,500.  It becomes essential the more expensive your car is.  Anyhow, countless insurers only offer fully comprehensive cover for higher value cars.

There are a few ways of cutting the expense of fully-comprehensive cover. For example, Tesco Value insurance offers a comprehensive policy but has a higher compulsory excess, which lowers the cost. However, this doesn’t automatically make it cheapest; ensure you first use the comparison sites above to check.

If the vehicle belongs to you, make sure you put yourself down as the owner and not someone else

You shouldn’t be tempted to put someone else down as the first named driver, if it is your car. For example, you are fronting, which is illegal, if you list parents as the main drivers to reduce your insurance costs.

Parents generally mean-well and are unaware that they are doing anything illegal when they put themselves forward as the main drivers. Nevertheless, the penalties can be extremely severe; it cancels insurance and can end up in a legal trial.  Therefore, you must not do it.

Endeavour to include a reliable second driver to your insurance

Insurance can cost a small fortune, if you are below 25.  Still, including a second driver to the insurance, even if they don’t use the car regularly, can even out the normal safety threat and lower the premiums at times.  Anyone that is in a lower risk group than you can help, and individuals with a further record for good driving tend to help make greater savings.

It doesn’t work all the time, but it is worth playing around with quotations to check. Nevertheless, you should confuse this with ‘fronting’, which is illegal – see below.

Pimping your car will lead to higher insurance costs

This might appear to be racy, but it does not save you money. You will be charged extra for all the additional alterations you make to your car, except safety one.

Your insurer must be informed of any alterations to your car, whether you made them or not, or it may invalidate your policy. A modification is anything that isn’t an element of the standard vehicle specification, including factory fitted optional extras such as alloy wheels.

Inform your insurance company on any changes and specific conditions

For example, you should inform the insurer if you have made a claim in the past few years, have a modified car or expect to drive 100,000s of miles. Your entire policy might be worthless, if you do not and then attempt to put in a claim

You should also tell your insurer about any changes. This is essential because it lowers hypothetical problems in the event of a claim, even if it is just a change of address. Attempting to obtain insurance after having a policy cancelled due to a fraudulent claim is extremely problematic, extremely costly and will haunt you for the rest of your life.

A change in circumstances includes moving jobs, as insurers believe this can affect your risk. Scandalously, the unemployed often (though not always) pay higher rates for their car insurance, so do inform your provider if you’re out of work but also do the full checks below to see where you can get the cheapest cover.

Work out the exact amount you want to claim

Consider buying a policy with a higher excess – the amount you have to pay yourself for any claim. Most people will discover that making a claim for less than £500 worth of repairs raises the upcoming cost of insurance and can discredit no-claims bonuses.  Therefore it’s not worth putting in a claim each time.

Consequently, why should you pay more on top for a lower excess? Attempt to get quotes for a £1000 excess, because some a small amount of policies will significantly lower premiums for it. The drawback of this is that you will have to folk out much more if you have a claim.  Therefore you must take this into consideration.

Avoid the temptation of providing false information

The most important rule with insurance is:

“Always tell the whole truth and nothing else”

Undeniably it is easy to be dishonest about this, BUT it is fraud lying on your insurance form and it could lead to your insurance being cancelled, or a criminal prosecution in the worst case scenario. You must not do it.

These methods ought to cut your costs. Nevertheless, insurance will be too expensive for a select number of young drivers. It’s up to you to decide if it is worth it!

A further clue to reduce your costs involves altering the description of your job. Insurers choose their prices subject to a historical risk assessment, and your employment plays a crucial aspect in this decision.

If you are in a steady relationship, plus if you’re cohabiting rather than registered as single, you might save some money on your insurance too.

Try multicar policies if you live with your parents

Certain providers offer concessions if you insure two or more household vehicles together. You will have to contrast this yourself because comparison sites do not have the technology to conduct these searches for you.

Use comparisons for each car independently to begin with. Generally, the discounts are approximately 10%.  It is probable that you will discover that standalone insurer will win anyhow. Therefore, always do the comparisons to begin with, then try the deals underneath to compare.

Multi Car Policies – Save Even More Money!

Get all cars on one policy. Admiral provides up to 12% reduction if you cover two cars, and 24% for covering four or five. All cars will then be covered on one policy so the renewal dates will be arranged to expire at identical times.

Pick up your discounts even though you separate your policies.

Certain insurers accept separate car policies and provide a discount providing the vehicles are from the same household. Privilege gives up to 10% off, Direct Line 15% off (first year – second year is 5%), Churchill (who also cover named drivers on another Churchill policy) up to 15% off and Aviva up to 15% off. Check this list of car insurers for a full range of companies.

Accurately merge comparison websites

Comparison websites very quickly send all your information to a multitude of insurers’ and brokers’ sites, scraping their records from their screens to feedback the lowest price. Still, they do not all compare identical sites.  Therefore, you need to merge them, in order to capitalize on the range of quotations.  We have explored the sequence that gets you the maximum quotations in the minimum time.

“The top two comparison sites compare 138 providers amongst them – that is 69% of the entire search”

Moneysupermarket

Remarks:

  • Investigates 61% of the entire search in 6 minutes
  • Good descriptions including. mileage calculator, predictive occupation search and results immediately-revised when altering
  • Can misreport excesses – so check twice!

GoCompare

Remarks:

  • Investigates 61% of the entire search in 7 minutes
  • Capability to modify searches, for example, includes breakdown cover or a courtesy car
  • Don’t forget to tick the ‘please click here for more info’ link to stop marketing follow up
  • Can misreport excesses – so check twice!

You are not told that some of the best economical deals are not accessible on comparison sites

Two rival insurers do not want to be added to any comparison site, and occasionally have exclusive offers; therefore, it’s worth checking them individually.

Direct Line At this time, offering 15% discount on new car insurance policies.

Aviva At this time, offering 15 weeks free for new customers with at least four years’ no claims when purchasing car insurance online.

Two comparison sites tried to throw the industry by suggesting ‘quick cash back ‘when you make comparisons and then buy a policy with them.  This does not give almost as good as certain hidden cash back offers, but it might still make a big difference.

Cash Backs

SimplySwitch is offering £40 providing you surf through their site and key in the phrase SIMPLYCAR.

MoneyExpert has fixed its non-payment surplus to £400 and involves certain guesses, therefore, be cautious and check the quotes are correct for you. Essential Information: Ways of Getting Cash Back

Additional Options to Choose From

There are plenty of additional choices to try if you haven’t come across an offer that you are satisfied with yet.  These other comparison sites will include approximately thirty providers amongst them; however, there are more impartial insurers.

QuoteZone:

Time-consuming because zilch is pre filled in. Try it: QuoteZone

Confused:

Speedy, far reaching and clear-cut – Visit Confused.com

TescoCompare:

Get 12 months Key Recovery service free when you buy cover. Try it: TescoComp

CompareTheMarket:

Try it: CompareTM

Tripple check the policy terms

You should tripple check crucial terms in the policy after you have got the quote you want from the screen scrapers:

  • Check the quotations three times

Click directly onto the insurance provider’s own site to see if they have the quotations because to make the searches go faster a few comparison websites make some presumptions.

  • Assess the policy’s reportage

Check if it’s appropriate or not. Ask yourself is car hire included for free if you would like it for those times your car is at the mechanics?

It is also worth changing around the policy facts to try and reduce the cost.  For example, examine all excess pol, and see if by including other drivers reduces the price.

Find offer comparison tool that lets you compare 2 individual polices alongside each other.

What will happen if an insurer has financial difficulties?

You will be protected because Insurance providers controlled in the United Kingdom are protected by the Financial Services Compensation Scheme; banks are protected by them too.

Comparison websites have plenty of providers that are regulated. A handful is not regulated, for example, Markerstudy, which is regulated in Gibraltar.  This means you would have to claim from there if it is your insurer and it goes bust.  Therefore, it is constantly worth checking yourself if you are worried.

Dedicated policies for younger drivers

You should check dedicated young drivers policies after you have tackled the comparison websites, to find out if they beat their policy prices. You will have to frequently use a calculator when obtaining a secure price because of the unconventional nature of such policies,

Make Payments When Driving

A tracking gadget is attached to your vehicle to observe the time when your driving, which means it costs a certain amount everytime you use your car.  The amount it costs is also based on a risk assessment.

i-kube

On the other hand, i-kube is directed at those who are 25 years old, who don’t regularly drive between the hours of 11pm and 5am.  There is an additional payment for using your vehicle outside these hours, and the cost is extortionate – £100 per night so only consider this option if you know you can go without your car between these times.

Coverbox

Provide a ‘pay as you drive’ arrangement from Coverbox includes charges for each mile and it changes depending on what time you drive – daytime or night-time.

These can reduce costs for lower mileage drivers, particularly if you do not drive in the evening – 11pm – 5am. The cost for each mile increases during this time. Even though it’s not particularly for younger drivers, it does give certain drivers under age 30£50 cash back.  If you meet the requirements for this scheme, you will find the details on your quotation.

Make payments according to the way you drive

Global Positioning System devices observe the way you drive. Obviously, the cost is still dependent on your individual risk profile.

Co-operative young driver insurance installs a ‘smart box’ into a 17 to 25 year olds’ car to observe braking, acceleration, cornering, plus the time you drive.  Then you are charged every ninety days for insurance.

The insurance price will then go down by approximately 10% or increase by approximately 15% subject to the cars condition driven.  Your driving insurance could be cancelled if you drive dangerously.

Co-op states that their pay by the the way you drive product could make savings for a high proportion of young drivers that are good, with half anticipated to pay £328 less than standard competitor prices.  Nevertheless, it’s still a new policy, so we cannot confirm this just yet.

The AA is going to launch their Smartbox product sometime soon.  It is predicted to work like the system above.

Specialised brokers for younger drivers

Comparison sites serve people with typical circumstances well; however, they tend to disappoint others.  It is worth researching Swinton’s Young Driver because it looks for insurance providers who cover younger driver and students.

Adrian Flux, A Plan, Only Young Drivers, Thames City, and Endsleigh are additional brokers that offer insurance to younger drivers.  It is better to ring them and request a quote because they don’t all have online offers.

Alternatively, have a one-to-one chat with an insurance broker near you about your own situation to find out if they are able to get hold of a suitable policy for you (explore the British Insurance Brokers’ Association site).

Insurance for Learner drivers

Learner drivers regularly have to be added to their parents’ or friends’ insurance as a second driver which generally increases the price and jeopardises a no claims bonus.

Nevertheless, you can safeguard this by getting certain policies that are purely for provisional drivers like and Endsleigh and ProvisionalMarmalade

The previous even has a scheme that incorporates a log book that you have to fill out so that you can receive a discount – £100 if you go over to Young Marmalade once you pass your test.

Young Marmalade

Young Marmalade: offer an insurance policy combined with a small risk new or almost new vehicles on hire purchase basis or on an individual contract arrangement for around two to five years.

This can significantly reduce the cost of insurance, but clearly, you are purchasing a vehicle around the same time.  It could be cheaper long term for certain people.  Still, you should do your sums really carefully prior to signing a contract.

Cars bought through Young Marmalade have a clever tracking device that lets you examine your driving as well as amending problems such as unnecessary cornering, braking, speed, or acceleration prior to the next financial year begins. Saving money for excellent drivers is included in your initial cost; however, it could be increased further if you are not a good driver.

No insurance charge when you purchase a new car

If you still have to dish out too much money for your insurance, it might be worth having a look at contracts that actually cover your vehicle insurance if you purchase a car with them.

It is worth keeping an eye out for these types of deals because certain dealers or manufacturers sometimes have this type of promotion on a short term basis.

Step 4: Take unknown cash back & reductions

You might have the option to lower the cost more at this point.

The best cash back offers

You must check that there are no hidden cash back deals after you have found your best provider, which cost you up to £100. If you get a later quote(s) that isn’t that much more costly then finding out if they offer cash back too and search for the general winner.

The list underneath will highlight a range of possibilities to increase your deal further.

Check 1: Sites that Offer Cash back

These sites supply compensated links from certain dealers and financial service providers.  They get paid when you click via their site and buy any merchandise. After that, they give you a bit of the money.  Therefore, you receive an identical product, however, at a percentage their profit.

Do not base your decision just on cash back, this is just a plus after you have selected your ideal cover…

Essential information you must be aware of prior to doing this.

  • Takeout the cash back as soon as you are permitted do so. Money left in your cash back account doesn’t have any protection whatsoever if the firm collapses, therefore, constantly pull it out as soon as you are allowed to do so
  • Under no circumstances should you assume the money as your own until you see it on your bank statement. Cash back isn’t always 100% guaranteed – you might experience problems with chasing and dividing the payment. Also, the majority of cash back websites are small firms with inadequate backing, therefore, you have no safeguard option if anything goes wrong with them
  • Clear all your cookies. There’s a small risk with cash back – it might not trace because of cookies, particularly if you’ve utilised comparison websites previously, therefore,  it is a good habit to delete those initially (read AboutCookies)

Check 2: Receiving cash back through comparison websites

You have another option if cash back sites do not mention your insurance provider. A few comparison sites give you cash back if you make comparisons and then take out policies through their site

SimplySwitch, is offering approximately £40 providing you go through their website and type in the reference code SIMPLYCAR).

Once more, it is much more critical to buy the correct policy rather than putting too much emphasis on a small amount of cash back.  Therefore, make sure of that to begin with. Nevertheless, you must ensure that you tick each of the correct boxes in order to claim any cash back, and also recognise that comparison websites pay this dividend wholly (not the insurance companies), therefore, you’re dependent on their capacity to pay out. Have a look at the quick cash back section for the full advantages and disadvantages.

Check 3: Specialist Offers

If you’re unable to get cash back, it is useful to know that a handful of companies have specific deals that are not stated by comparison websites. At present, these include (mentioned in alphabetical order):

Aviva offers 15 weeks free for new car insurance customers with around four years’ no claims.

Be Wiser are offering free membership with RAC for policies purchased through their brokerage website

 
 

Purchase from Direct Line and get 15% discount on your car insurance.

Purchase through the Confused partner site on Nectar and you’ll receive 1,000 points that are worth £5

 

New customers purchasing car insurance from Santander get free roadside breakdown cover.

Quotes are valid for 30 days

Purchase your vehicle insurance through TescoCompare and you’ll get 12 months Key Recovery service free.

Purchase your vehicle insurance through Tesco and you get up to 10% off when purchasing online and club card holders get a further up to 20% concession

Barter your insurance!

Car insurance industries are incredibly competitive and firms are eager to keep your car insurance policies. Consequently, you should try to barter over the phone after you have got your most economical price. There are huge price variations regularly, although you have to be completely prepared with the screen scraper’s lowest quotations, plus any accessible cash back to begin with.

Your current insurer ought to be your first contact point because it can save a lot of time and aggravation of changing policies if they can outdo or even complement the finest quote. You should take it along to an insurance broker if that doesn’t work, providing you are still up for it.

Plan ahead and you will save more money!

Your insurance premiums tend to get less after twelve months, as long as you drive carefully and you do not have any collisions. Nevertheless, staying with your existing provider is not always wise because they might not offer the best price.

You will probably get a better price from you current insurer if you apply for coverage as a fresh customer. why? Because vehicle insurers are content in profiting from lack of interest if they have the opportunity to do so. Unfortunately, loyalty does not enter the equation.

Insurers are legally required to provide a minimum of 28 days renewal notice before the due date, although this doesn’t give you a lot of time, plus you could end up trying to search for a better quote too quickly.

To prevent this from happening, schedule a reminder eight weeks prior to your renewal due date, so that you have enough time to find an alternate provider if necessary.