How Teenagers Can Really Save on Car Insurance

How teenagers can really save on car insurance

Some innocent tongue-in-cheek advice or irresponsible television – whatever your verdict on Top Gear’s presentation of tops tips for cheap car insurance, it’s clear that taking them seriously would land you in hot water.

The BBC programme presented a number of sure-fire suggestions to help young drivers save money on car insurance. Clearly the segment was written for humor as one of Jeremy Clarkson’s suggestions was that 17-year-old boys should get a sex change in order to halve their premiums.

However, one of their suggestions doesn’t appear so outlandish on the surface but could still carry significant repercussions - and that is insuring a vehicle under a parent’s name.

Why you shouldn’t ‘front’ a car insurance policy

The process of insuring a child’s car in a parent’s name may be the act of well-meaning parents, but it is illegal and known as ‘fronting’. In fact, in an effort to prevent this, some insurers have changed their policy criteria to always charge the highest risk driver.

It used to be a fairly widely used method of keeping insurance costs in check but it carries serious repercussions if the fraud is exposed.

If this occurs, insurers have the right to cancel the policy and charge the correct premium as a lump sum. This in turn hits young drivers’ hopes of gaining a cheap car insurance policy in the future as they have to declare cancellations going forward. What’s more is that insurers can refuse to pay out for any claims, or can settle a third party claim by recovering the cost from the parent.

Indeed if all this isn’t enough to put you off the act of fronting, consider that if an insurer denies a claim, a young driver could be treated as driving without insurance and be fined significantly as well as receiving six penalty points - an automatic ban for new drivers.

So what can be done to keep teenage car insurance costs in check?

Though the act of fronting won’t get them ahead, there are several valid ways for teenagers to reduce their car insurance costs significantly.

The first is to select their vehicle carefully. Generally the least powerful cars have the lowest premiums so look for a vehicle with a small engine capacity. Steer clear of models with letters such as ‘SXI’ and ‘GTI’ too. These tend to be sportier models and are frowned on by insurers. Don’t try and modify a vehicle either. Adding alloy wheels, blacked out windows, hydraulics and a sports suspension could all heap £100s on to your insurance premiums.

Think about the level of cover you need based on the car you buy too. Many teenagers buy relatively cheap cars initially which brands comprehensive car insurance ineffective because you could pay more for its premiums in a year than the car itself is worth. So consider a third party or third party fire and theft policy at first while you build a no-claims discount.

Teenagers can also reduce their car insurance costs by taking the Pass Plus course immediately after successfully completing a driving test. With some insurers, this can earn a discount as high as 35 per cent. Indeed several insurers offer incentives designed for younger drivers such as rapid bonus schemes which allow them to earn a full year’s no-claims discount in as little as six months.

Security is vital for any driver, but particularly for youngsters who go to University as crime rates tend to be high in University towns. If you have a garage available to park in overnight then do so - it could earn you a five per cent discount on your premiums. Parking in a secured area too during the day will help so keep your vehicle off the street if you can.

Its well worth investing in some security devices for your car that goes beyond the manufacturer’s standard setting as most car thieves are sophisticated in the methods they use and are able to get around the most basic systems. So ask your insurer about the alarm and immobilizer systems it recommends. Installing them could earn you a significant discount and potentially recoup your initial outlay within a year.

Finally, and perhaps most importantly, make sure you shop around for car insurance. Just because one insurer quotes you a high premium that doesn’t have to be the case with every provider as insurers assess risks in different ways. So compare car insurance online with a comparison website and see if you can find a cheaper deal.