Insurance for new drivers costs a small fortune in comparison to more experienced drivers as statistically they’re far more likely to be involved in an accident.
Eye-watering insurance costs
The difference between age groups is eye-watering. Recent figures from the Association of British Insurers (ABI) show that, on average, someone aged between 18 and 20 pays £972 a year for cover, while those aged 56 to 60 just £277.
However, there are things drivers who have only just passed their test can do to minimise their premiums. Here’s seven key ways to go about it:
- ‘Black box’ cover – If you agree to having a gadget fitted to your car which monitors how you drive – known as a ‘black box’, or ‘telematics’- insurers sometimes offer a discount. This might only start in the second year of cover, but should be worth doing.
- Adding a more experienced driver to a policy – Having a named driver added to a policy who is much more experienced can reduce the cost of cover. However, they must use the vehicle some of the time, otherwise the cover could be invalidated.
- Choose your car wisely – Make and model of car impacts enormously on the cost of cover. Driving one in the cheapest group to insure – group 1 – will cost a lot less than a car in group 50, the most expensive category.
- Car security features – Cars fitted with good alarms, immobilisers and wheel locks can help cut the price of premiums.
- Where you keep your car – If at all possible, keeping your car off the street will help lower premiums. A garage is best, but simply having it on a driveway can be of benefit.
- Choose a higher ‘excess’ – The ‘excess’ on car cover is the first part of any claim you make that you have to pay yourself and is usually set at a standard rate of around £150 to £200. However, you can usually voluntarily choose to pay more – perhaps, say, £300 – and the quoted price for a policy should then come down.
- Pay annually, not monthly – It’s in the region of 10% to 15% cheaper to pay for your annual cover all in one go, rather than staggered over 12 months. Insurers like it as they have less administrative costs. You’ll like it because you pay less.
- Look around – Use online comparison sites and also speak to brokers, who can often provide great advice and help get you deals you might not find online.
Our customers are at the heart of everything we do, so we have a team of experts with a real passion for making sure people get the cover that’s right for them. For more information, you can call our experts on 0330 0600 600 or visit www.policyexpert.co.uk/contact for more ways to reach us.
Published 20 August 2019