How Will New Driving Tests Affect Car Insurance Premiums?

According to the UK Government’s Transport Secretary Ruth Kelly, a revision of the driving test system will save lives and save cash – enhancing the safety of young motorists behind the wheel and hopefully reducing accident rates, which in turn will cut car insurance premiums.

The new system will see youngsters undertake a foundation course in driving before they hit 17 – this will be piloted across schools and colleges in Scotland this autumn. The course, for 14- to 16-year-olds will have a set syllabus to establish the dangers of driving at night and in bad weather, while also beginning the basics of car control.

In addition, the driving test itself will be given a shake-up to place less emphasis on manoeuvres and more focus on a candidate’s ability to drive independently, and on their road awareness. There will also be a post-test driving course set up which the Government hopes will be recognized by employers and insurers.

However, while this all sounds good in theory, youngsters could be forgiven for raising an eyebrow after the apparent failure of the last scheme that promised them reduced car insurance rates – the Pass Plus.

How did the Pass Plus affect car insurance premiums?

The Pass Plus test was designed to help combat high car insurance premiums by giving new drivers more experience in night-time, motorway and inner-city driving. However, of the 181,000 who take the course each year, each has paid on average £171 and yet has not necessarily enjoyed the premium savings they may have expected.

Whereas the Pass Plus can save as much as 35 per cent with some insurers, the average discount is just 12 per cent. In total there are only 15 car insurance providers in the UK that offer a Pass Plus discount and even with these savings in place they will not necessarily provide the cheapest car insurance quotes.

Young drivers are better off if they avoid being lured in by these advertised discounts and instead shop around independently for cheap car insurance by using a comparison website.

Will the new driving test system reduce car insurance premiums?

Certainly the overhaul of the driving test structure in the UK is a positive step. Statistics show that while road deaths have fallen by 33 per cent since the mid-1990s, the casualty rate for young drivers has not changed.

To make matters worse, one person in every five has an accident within six months of passing their test – with a further 70 per cent reporting near misses.

With accident rates so high its clear that something needs to be done to give inexperienced drivers greater preparation before they take to the roads. If accident rates can be reduced as a result of the greater testing it should lead to reduced car insurance premiums. Currently, there are several car insurance providers in the UK that will not offer any form of quote to 17-year-old drivers because the accident rates are so significant.

How can you reduce car insurance costs in the meantime?

Young drivers can still make car insurance savings as long as they are savvy.

This begins with their choice of car – insurers frown upon modified vehicles with large engines that are often used by boy racers. Stick to a conventional vehicle with a smaller engine and your insurer should look on you more favorably.

Think about when and where you drive too. Many car insurance companies offer premium reductions if you agree to a mileage limit. There are also pay-as-you-drive schemes granting you reduced premiums if you avoid rush hour traffic. If it’s not essential to drive at the busiest times of day, inform your insurer and you should be able to work on a reduced premium. If you only need a car during term breaks then let your insurer know – there will be a sizable reduction particularly as you will avoid driving in notorious student zones which are often subject to high crime rates.

Examine the security of your vehicle too – if you can park it in a garage overnight and fit a car alarm then do so, and make sure you tell your insurer. Youngsters can also add a parent to a policy as a named driver. Don’t however ask a parent to ‘front’ a policy for you as this is illegal and will invalidate any future claims.

It’s still worth taking the Pass Plus course too but the key is to still shop around for cheap car insurance to ensure the deal that gives you the most notable discount is also the cheapest offer available to you.