How Youngsters Can Get Cheap Car Insurance

In terms of a Christmas surprise there aren’t many gifts that a 17- to 21-year-old will appreciate more than the keys to a brand new car. However, unless you’re willing to support their driving for several years into the future, then by buying them a new car you may simply be placing a financial noose around their neck.

Car insurance premiums, which have risen by £50 on average for all motorists this year, are particularly high for young people. According to the Sainsbury’s Car Insurance Index, youngsters can expect to pay more than £1,200 a year on car insurance – despite the fact that they make up just seven per cent of the car insurance market, young people pay approximately 22 per cent of the total premiums in the UK.

Separate research from the Association of British Insurers paints a similarly conclusive picture about the UK’s newest motorists. It shows that despite making up just 10 per cent of licence-holders, young people are involved in 25 per cent of all accidents.

These hard-hitting statistics are primarily devastating for young people’s wallets – regardless of their own driving performance they are likely to be hit with sky high premiums just by association with their peers.

What car insurance options do young people have?

Thankfully not every insurer takes the same approach to the nation’s youth. There are actually several insurers, including 17- to 21-year Old Insurance and Collingwood Insurance, which specialize in providing quotes for young people. There are also several mainstream insurers that are willing to offer concessions if young people take a particularly sensible approach towards their driving.

For example, several insurers offer a Pass Plus discount. The Pass Plus is a course generally taken immediately after passing the driving test, in which a new driver can gain experience in unfamiliar settings – such as on a motorway, driving at night, and driving through towns and cities. The course itself costs upwards of £100 but some insurers are willing to offer discounts in the region of 35 per cent during the first year of driving if you complete the course. As a result, the course can effectively pay for itself through the money saved.

There are also a number of car insurance providers, including Norwich Union, that are willing to offer rapid bonus schemes to young motorists. As a concession for the fact that they will generally pay higher premiums to begin with, youngsters can earn a full year’s no-claims discount in just nine months during their first year of motoring. This can offer substantial savings going forward.

However, as a general rule of thumb, youngsters should be careful not to stick with the same car insurance provider year in and year out. For every year that you’re on the road and gain experience, you should be able to reduce the average premium that you pay. As a result, if your renewal quote does not reflect significant savings year-on-year you should take the time to consider your options and shop around with a comparison website which will compare dozens of car insurance quotes from a host of insurers in minutes. This will allow you to make a decision about the level of cover you require and the price you are willing to pay.

How can youngsters reduce their car insurance premiums?

If you’re shopping around to buy a young person in your life a car for Christmas or indeed any time of the year, then think carefully about the choice you make. Insurers will evaluate your car choice when assessing the premiums that the young driver should be paying. Due to the reputation of some teenagers as ‘boy racers’ speeding around the roads, it’s best to stick with a small, conventional car with a regular engine, at least for their first car.

Avoiding vehicle modifications will help you save too. Though spoilers, hydraulics, lowered suspensions and alloy wheels may make the vehicle more attractive to a young person, they also attract attention from thieves and vandals. Consequently they are often punished heavily by insurers.

To keep premiums down, youngsters should think about the security of their car. Look to park the car in a garage overnight – if that isn’t possible, at least park it in a secure or well-lit area. Consider installing security devices such as trackers, immobilisers and alarms too, particularly if living in a high crime area.

Finally, adding a parent to a policy as a named driver can also help you earn cheap car insurance. However, do not ask a parent to ‘front’ a policy for you as this is illegal.