Getting the best car insurance deal
Many young drivers can often be faced with large insurance premiums when they first take to the road but read our guide on how it may be possible to lower the cost of cover.
Research shows that drivers aged between 17 and 24 are more likely to be involved in an accident and one in five UK drivers will have an incident during their first year of driving experience.
Therefore, many insurance companies feel they are justified in charging more for those who are new to the road. In fact, prior to a change in European Union legislation, insurance companies were also able to charge male drivers more than their female counterparts – making cover for young men very high.
So what can newbie drivers do to lower their high insurance costs?
One way is to look at the various offers by car makers. A number of companies are aware that the cost of insurance could be putting many people off and this is having an impact on new car sales. After all, if facing insurance premiums of in excess of £1,000, it can be tempting to opt for a second-hand car to save some cash.
Therefore, some of the large car manufacturers often offer to pay that first insurance policy when selling a new car or offering good monthly finance deals to spread the cost of car ownership.
Shop around for the best deals
Not just young drivers, but all motorists can benefit from doing some research before purchasing their insurance cover.
There are plenty of comparison websites that allow drivers to look at the cost of different policies. However, remember not all of the insurance providers may be included in the results, so consider approaching traditional brokers as well to see if they can find an even cheaper deal. It may seem time-consuming, but in the long run it could significantly reduce motoring costs for many consumers.
And when that renewal comes through, don’t automatically sign up for another 12 months of cover. Often insurance companies offer attractive rates that go up significantly after the initial cover period and by not shopping around again you could be paying over the odds for insurance.
Consider a black box
A new option that is gaining popularity is the use of black box technology. This is a device that can be fitted to most vehicles and records a wealth of information, such as speed and number of miles covered.
The idea is this information allows insurance companies to offer more realistic premiums and those driving safely are more likely to benefit from lower costs.
What policy to choose?
Tailoring your policy can also help to reduce the overall cost. For example, setting a higher excess could reduce your annual premium, but at the same time it does mean if you are involved in an accident it could prove very costly.
Do you need fully comprehensive cover? Traditionally, comprehensive cover has often been more expensive that third-party, but this is now not always the case. Therefore, it is worth getting quotes for all times of cover as there may be little difference in the initial outlay.