Car Insurance for new and learner drivers.

Car insurance for new and learner drivers

If you’re a learner driver or you’ve just passed your test you may think it’s impossible to find cheap car insurance. However, even though premiums for inexperienced drivers are notoriously high there are ways to keep them in check.

Do new drivers have to pay more for car insurance?

Car insurance companies assess premiums by judging how likely you are to make a claim. This assessment is based on a number of factors including: your address – such as if you live in an area with a high rate of accidents or vehicle crime; the vehicle you drive itself; your annual mileage; your personal circumstances, such as if you are married and whether you require a car as part of your job; and your driving history.

In terms of their driving history, new and learner drivers pay the price for not having ‘proven’ themselves as motorists. They have not had the opportunity to build up years without making claims and they are affected by the reputation of their peers. According to the Driving Standards Agency in 2008, only one in eight car licence holders is under the age of 25 yet one in three drivers that die on the UK’s roads is also in this age group. Furthermore, one in five drivers has a crash within six months of passing their driving test.

All of this means that premiums are typically high. According to research by a comparison website in November 2009, the average cheapest quote for 17-year-olds is £2,455.

Are there ways to bring premiums down? Just because you are a new or learner driver it doesn’t mean you have to face high car insurance costs. By following some straightforward steps you can keep your premiums affordable. Here is a step by step guide:

- Step one: Choose the right car

Don’t go overboard with your car choice when you’re new to driving. High performance cars face higher premiums as they are more likely to be driven at fast speeds; while newer cars typically cost more to repair/replace. So, for your first car, while building your driving experience, opt for an older car with a small engine and standard specification. Avoid modifications too.

- Step two: Choose the right level of car insurance

Think carefully about the level of car insurance you require. Clearly the more cover you have the better in case an accident occurs, but it’s also important to think about what you can comfortably afford.

Comprehensive car insurance may be out of your price range, so consider third party or third party, fire and theft, particularly if you drive a low value vehicle. If you do opt for comprehensive cover then select your policy options carefully – for example do you really need a courtesy car if you have access to a second vehicle; or do you need cover for business use of the car if you only use it for social run-arounds and commuting?

- Step three: Consider a specialist

If you’re a learner driver, you may wish to consider a specialist car insurance policy. There are several learner drivers’ car insurance deals available that won’t typically tie you into a long term deal – they’ll simply provide short-term cover until you are legally able to drive. Then you can reapply for cover once you have passed your test and are set up with a car of your own.

- Step four: Reduce your risk

As premiums are calculated based on the risk that you will make a claim, reducing this risk can in turn reduce your premiums.

Among the actions to consider are increasing the security of your vehicle with devices such as car alarms, immobilisers and trackers – your insurance company should be able to recommend which systems offer the largest savings. Similarly, parking your car in a garage overnight away from thieves should also help you save.

Consider increasing your voluntary excess. The excess is your contribution towards a claim and is usually divided into a compulsory excess set by the insurance company and a voluntary excess that you agree to pay on top of this amount. Increasing the voluntary excess usually lowers premiums, but you should be careful to keep it at a level you can comfortably afford.

In addition, many insurance companies offer discounts if you complete the Pass Plus course – in fact, this could potentially save you as much as 35 per cent and you may be able to secure help with the cost of the course from your local authority. Some insurance companies also offer rapid bonus schemes to young drivers allowing them to earn a full year’s no-claims discount in less than 12 months; and limited mileage discounts if you are willing to agree to a mileage cap.

- Step five: Shop around

Once you know exactly what you want from a car insurance policy then shop around using a comparison website. The leading websites can compare deals from as many as 120 insurance companies with a single search so you don’t need to put a great deal of time into finding a good quote.