How younger drivers can save money on car insurance

For younger drivers the cost of insuring a car can be high at the best of times, but in the current financial and economic climate, when money is tight for everyone including younger consumers, many may be hoping more than ever to try and save money on the cost of this expensive insurance cover.

With younger drivers being classed as a higher risk most insurance firms will charge a fortune for cover, even if it is just third party, fire, and theft cover, but with this type of insurance cover being compulsory the only real choices that younger drivers have is to either stump up the money or go without having their own car.

New drivers in particular pose a risk for insurance firms, and you can tell this by the extortionate premiums that these newer drivers are forced to pay.

With one in five new drivers having an accident within the first six months of getting their full licence, insurance firms simply aren’t prepared to take any chances, and those that are prepared to insure younger drivers will make sure that the risk is reflected in the cost of cover charged to the driver.

Even parents that want to add their newly driving kids onto their insurance to drive their vehicles will find that the cost of their premiums will rocket as a result of this.

An official from Direct Line Insurance explained why younger and newer drivers are deemed such a risk to insurance companies, stating: ‘Drivers under 21 are twice as likely to make a claim as those over 21. But they are five times more likely to have a claim involving an injury and ten times more likely to be involved in a serious injury claim.’

As an illustration a recent report showed how a seventeen year old male new driver would end up paying around nine times more than someone aged twenty five and around fourteen times more than someone aged thirty five to insure the same vehicle in exactly the same location.

The difference in cost was very slightly less for a seventeen year old female driver. However, some industry officials have said that all younger drivers should not be penalised simply because of statistics.

An official from the AA said: ‘Not all young drivers are reckless or careless when behind the wheel. The insurance industry must find a formula that recognises those who take a responsible approach to driving. Young drivers do eventually become experienced drivers. Yet many insurers won’t offer cover for drivers under 21 or even under 25.’

Officials have said that there are a number of ways in which younger drivers can try and cut back on the cost of their insurance cover, and a few of these have been highlighted below:

Taking pass plus test: Once a young driver has passed their initial driving test it is a good idea to consider taking the advances pass plus test. This can increase confidence for the driver, improve driving skills, and can slash the cost of cover, as this will be taken into account by insurers when working out premiums.

Comparing providers: Whilst the general rule is that younger drivers are likely to pay more for their cover, the actual cost of cover can vary from one provider to another. Therefore it is important to compare the cost of cover from a number of providers so that you can find the best price for your needs, and this could save you a considerable amount of money.

Earn no claims discount on others’ insurance: Some insurance companies allow named drivers on the policy to earn their own no claims discount, so younger drivers could find that by being a named driver on their parents’ policy and driving their car for a while could help them to earn their own no claims, which would then reduce the cost of cover when they get their own car and insurance cover.

Tags: car insurance, vehicle, consumers, younger drivers, climate, claim, young drivers, Driving test