Putting young drivers within reach of cheap car insurance

The enthusiasm that young drivers feel when they pass their test and purchase their first car could quickly turn into frustration as they search for cheap car insurance.

Young drivers in the UK aged from 17-21, have traditionally faced higher car insurance premiums primarily due to their lack of experience behind the wheel which has equated to a higher percentage of accidents among their age group.

However, now several car insurance companies are withdrawing coverage for young people altogether in the face of escalating claims.

Which car insurance companies are withdrawing cover?

The insurers in question are Axa, More Th>n, Saga, Swiftcover and members of the HBOS group which includes Halifax, Esure and Sheila’s Wheels. Each of these insurers will now automatically reject applications from 17-year-olds although some may accept them as named drivers on their parents’ policies in exceptional circumstances.

Even Norwich Union, part of the Aviva group, which is the UK’s largest insurer, is considering withdrawing its business from young people. A spokesman for the insurance company recently stated that it was reaching the point where premiums for young drivers had to be set at levels which are generally unaffordable.

According to AA insurance, the biggest car insurance broker in the UK, fewer than a quarter of all car insurers in the UK are willing to offer quotes to 17-year-olds and around half have stopped quoting for drivers under the age of 21.

What has caused this backlash from the car insurance companies?

In many respects, the statistics speak for themselves. There is a high casualty rate among young drivers with a recent survey revealing that male drivers under the age of 21 are ten times more likely to be involved in a motoring accident than drivers over the age of 30.

It’s not just young people that are being affected either – the more claims that are made, the higher car insurance premiums rise across the board. Last year the annual car insurance premium for an average policyholder rose from £594 to £624 with accidents involving young drivers seen as a key factor in the increase.

Is it still possible for young drivers to find cheap car insurance?

Clearly it’s now harder than ever for young people to find cheap car insurance – however, that does not mean it’s an impossible task.

Some car insurance companies are attempting to fill the void left by those refusing to offer quotes. For example, the Admiral group, which includes brand names such as Bell, Elephant and Diamond, has been quick to assure the public that it will continue to offer young drivers car insurance albeit at higher rates than more experienced drivers.

So how can young drivers find cheap car insurance?

Young drivers must take every step possible to reduce their car insurance premiums otherwise they may only receive quotes that are unaffordable.

One tip is to take an advanced driver’s course as soon as they receive their driver’s licence. Most instructors will offer the ‘Pass Plus’ course immediately after a young driver passes their test. Though this will involve an initial outlay (usually from £70-£100) it can have a massive effect on car insurance premiums - youngsters could save as much as 35% on car insurance just by completing the course.

It’s also important for youngsters to think about the car they drive. A car with a large engine will traditionally be penalised with higher premiums. Modifications, such as racing stripes and alloy wheels, will also bump up your insurance costs.

For cheap car insurance, young drivers should take measures to secure their vehicle particularly if they live away from home, perhaps on a University campus where crime rates are often high. They should fit an approved immobiliser and alarm system, and, if possible, park their car in a garage overnight.

One car insurance money-saving tip that may not work

It has become common practice for young drivers to use a parent or older family member’s name on their car insurance policy in order to save money on their premiums. However, insurers have caught on and are clamping down on this habit.

Many insurers will now refuse to offer quotes to 17-year-olds, even as named drivers.

The most important step to cheap car insurance

With so few car insurance companies now willing to offer youngsters quotes at all, it’s absolutely crucial that young drivers shop around.

The easiest way to do this is by using a comparison tool to compare cheap car insurance from dozens of providers in minutes. This way, young drivers can get an overview of the car insurance deals on the market so they can be sure they are finding the cheapest quote for them.