As a young driver, getting your first car is an exciting experience. However, with that excitement comes the realization that you will need to obtain car insurance. Unfortunately, insurance for young drivers can be quite expensive. In this article, we will explore the factors that affect the cost of insurance for new drivers, provide some tips on how to lower your premiums, and answer some frequently asked questions about car insurance.
How much is insurance for young drivers?
The cost of car insurance for young drivers can vary widely depending on a number of factors. Generally speaking, car insurance for young drivers is more expensive than for older drivers. This is because young drivers are considered ‘high risk’ due to their lack of experience on the road and the statistics that show that they are more likely to be involved in accidents.
According to the Association of British Insurers, the average cost of car insurance for 17-year-olds in the UK is £1,889 per year. However, this can vary significantly depending on your personal circumstances and the type of car you are driving.
|Factors that affect the cost of car insurance for young drivers|
|Age and experience|
|Type of car|
|Level of cover|
Age and experience
As mentioned earlier, age and experience are the biggest factors that affect the cost of car insurance for young drivers. Younger drivers are seen as higher risk because they have less experience on the road. However, even if you are an experienced driver, if you are under 25 years old, you can still expect to pay more for car insurance.
Most insurance companies divide drivers into four age groups: 17-20, 21-24, 25-29, and 30+. Drivers in each age group are assessed for risk based on age and experience, and premiums are set accordingly. As a general rule, the younger you are, the more you will pay for car insurance.
Type of car
The type of car you drive can also have a significant impact on the cost of your insurance. Generally speaking, the more powerful and expensive your car is, the more you will pay for insurance. This is because high-performance cars are seen as a higher risk due to the potential for speeding and other dangerous driving behaviors.
If you are a young driver, it is generally best to choose a car with a small engine and a low insurance group rating. This will help to keep your premiums as low as possible.
Where you live can also affect the cost of your car insurance. If you live in an area with a high crime rate or a lot of traffic, your premiums are likely to be higher. This is because insurance companies see these areas as higher risk.
In addition, if you park your car on the street rather than in a garage, this can also increase your premiums. This is because parking on the street increases the risk of damage or theft.
Your driving record is another factor that can affect the cost of your car insurance. If you have a history of accidents or traffic violations, you can expect to pay more for insurance. This is because insurance companies see you as a higher risk.
If you have a clean driving record, on the other hand, you may be able to get a lower rate on your car insurance.
Level of cover
The level of cover you choose can also impact the cost of your car insurance. There are three main types of cover: third party, third party fire and theft, and fully comprehensive. Third-party insurance is the minimum cover required by law in the UK, but it is usually the most expensive because it offers the least protection.
Third-party fire and theft insurance offers slightly more protection, but still leaves you vulnerable to damage to your own car. Fully comprehensive insurance is the highest level of cover and offers the most protection, but it is usually the most expensive.
Top tips for lowering your car insurance premiums
1. Choose a car with a low insurance group rating
As mentioned earlier, choosing a car with a small engine and a low insurance group rating can help to keep your premiums as low as possible.
2. Take a pass plus course
Completing a pass plus course can help to demonstrate to insurance companies that you are a safe driver and can help to lower your premiums.
3. Increase your voluntary excess
If you are willing to pay a higher voluntary excess in the event of a claim, this can help to lower your premiums. However, make sure you choose an excess amount that you can afford to pay if you need to make a claim.
4. Add a named driver
If you add an experienced driver to your policy as a named driver, this can help to lower your premiums. However, make sure that the named driver actually intends to drive your car and is not simply added to the policy to bring down the cost.
5. Shop around
Finally, make sure you shop around and compare quotes from different insurance companies. Don’t simply choose the first quote you receive, as you may be able to find a better deal elsewhere.
1. What is the average cost of car insurance for young drivers?
The average cost of car insurance for 17-year-olds in the UK is £1,889 per year. However, this can vary significantly depending on your personal circumstances and the type of car you are driving.
2. Can young drivers get cheaper car insurance?
Yes, there are a number of ways that young drivers can get cheaper car insurance. One of the best ways is to choose a car with a low insurance group rating.
3. What is a no-claims bonus?
A no-claims bonus is a discount that you can receive on your car insurance if you have not made any claims in the previous year. The longer you go without making a claim, the greater the discount you can receive.
4. What is a black box?
A black box is a small device that is installed in your car to monitor your driving. It can track things like your speed, acceleration, and braking, and can be used by insurance companies to determine your premiums.
5. Can you insure a car in your parent’s name?
Yes, you can insure a car in your parent’s name and be added as a named driver. This can sometimes help to lower your premiums, as insurance companies may see your parents as lower risk than you.
6. Should I pay monthly or annually for car insurance?
Generally speaking, it is cheaper to pay annually for car insurance. If you pay monthly, you may be charged interest, which can add up over time.
7. What happens if I can’t afford to pay my car insurance premiums?
If you can’t afford to pay your car insurance premiums, you may be at risk of having your policy cancelled. If this happens, you may find it difficult to get insurance in the future.
In conclusion, car insurance for young drivers can be expensive, but there are a number of ways to lower your premiums. By choosing a car with a low insurance group rating, completing a pass plus course, increasing your voluntary excess, adding a named driver, and shopping around, you can help to keep your insurance costs as low as possible. If you have any further questions about car insurance, don’t hesitate to speak to an insurance expert.