How Much Is Car Insurance For A New Driver?
car policy for newfangled drivers can be expensive. For the youngest new drivers between the ages of 17-20, annual indemnity premiums average around £1,800 and while car policy for 21-25 years old international relations and security network ’ thymine as expensive, it calm costs on average more than £1,000.
Why is it so expensive for these groups ? And what can you do to lower the premiums and get the best price ? Read on to find out everything you need to know about cable car insurance for raw drivers .
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Why is insurance for new drivers so expensive?
car indemnity for new and young drivers is indeed expensive because they ’ re seen equally high risk drivers. According to statistics they are more probably to be involved in an accident on the road due to lack of experience or because of poor people standards of driving i.e. certitude, drink/drug habit or mobile telephone use .
This makes car policy expensive because policy premiums are calculated based on gamble. For exercise the latest statistics from AA and the Department of Transport show that young drivers are a third more probable to die in an accident compared to more season drivers and that 23 % of all young drivers are involved in an accident in their first two years of drive .
Because of these statistics insurance companies raise their premiums to compensate for the fact that they are more probable to have to pay out .
Ways to lower your premiums
Having just paid for weeks ( in some cases months ) worth of driving lessons, a drive test and the expectation of care, car tax and fuel on the horizon, expensive car indemnity is the final examination nail in the fiscal coffin. As such, it ’ south crucial new drivers try to reduce the fiscal burden of motoring specially as the majority are young drivers without high income or a lot in the way of savings. here are eight ways you can lower your premiums .
Consider black box insurance
Black box policy, or telematics insurance, can be a great way to reduce your car insurance price if you ’ rhenium confident in your drive and preceptor ’ t mind being monitored. Your insurance supplier will monitor your driving behavior and amend your premium based on how safely you drive. This means that your premium will decrease or even increase depending on your manipulation of the vehicle .
There are three different devices that are used in this type of indemnity :
- Black box – this is where your insurance provider installs a black box (like in planes) in your car, which is then used to track your driving through GPS.
- Plug-and-drive – similar to black box devices, plug-and-drive devices track your driving through GPS but rather than being installed by your insurance provider it simply plugs into a charging point/cigarette lighter.
- Mobile App – mobile applications also track your driving through GPS but don’t require any physical hardware installation and aren’t offered by all providers.
As you can see from the table below, black box/telematics indemnity can lead to some huge savings for young and new drivers, with an average of over £800 saved for drivers between 17-19 and an average of about £400 saved for those between 20-24 .
however, black box policy may not be desirable for you because it could lead to an increase in premiums. As we mentioned before, If you ’ re deemed to be driving unsafely then your premium will increase and driving unsafely doesn ’ thyroxine barely mean heedless force. here are three other ways your premiums could increase because of black box indemnity :
- Driving at night or unsociable times – insurers can deem regular driving at night more risky due to poor visibility.
- High mileage – more time on the road is seen as higher risk.
- Driving busy roads – busy roads are seen as higher risk.
Look at smaller, less powerful cars
In decree to get an insurance quote on your fresh car, you ’ ll be asked for details of the fomite and choosing a cheaper, safer or less mighty fomite will most likely solution in lower premiums. This is because parts won ’ metric ton cost as much to replace, it ’ south less likely to be involved in an accident if performance is restricted and it ’ s likely to be deemed less of a gamble for larceny as it ’ mho less attractive to thieves .
To help you find a minor cheaper alternative, here are some of the cheapest cars to insure in 2020 :
Add a named driver
Adding an have driver to your policy if you ’ re a new/young driver will show the insurance company that it won ’ t just be you using the car, so the price will be reduced. This is because an have driver is a gloomy risk driver, this will make you appear as a lower risk when calculating your premium as it won ’ deoxythymidine monophosphate fair be you driving the vehicle .
Remember: check the T & Cs of policies when shopping about on-line for any exceptions/limitations which may impact your decision .
Increase your excess
Excess is how a lot you can afford to pay towards the entire for any repairs your car may need in the event of a call .
Increasing your surfeit reduces your premiums because not entirely will the insurance company have to issue less money when it comes to paying for repairs, but because it besides increases your trustworthiness as a customer .
By setting a higher excess, it ’ s about guaranteeing that you won ’ t make any superficial or false claims as you are more likely to be negatively impacted because you would have to pay the excess and see your premiums addition .
Remember: only set the excess to a calculate you are certain you can afford. If you can ’ deoxythymidine monophosphate afford your surfeit because you only setit high to reduce your bounty, your insurance company could refuse to process your claim .
Use a comparison site
just like any grok shopper would go to different stores selling the one detail they need in order to get the best price, policy comparison websites do this for you by working with multiple insurers and showing you the price of each one after you ’ ve inputted your details .
here are a few comparison sites you can use to get some quotes on your insurance. We recommend running quotes on them all to be certain that you get the report you need for the price that best suits you .
When comparing quotes remember that the best value for money international relations and security network ’ t constantly the one with the cheapest monetary value. Make certain to besides compare the terms of the policies as some will differ in extent of the cover .
Remember: while comparison sites are well places to start your search, not all insurers are listed on them. DirectLine for example prides itself on not being listed on comparison sites .
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Store your car somewhere safe
Where you say you store your car impacts how much you will pay for indemnity and you will be asked this when filling out your quotation mark. An insurance company will want to know whether or not the cable car is parked safely overnight and will ask questions relating to forcible address and facilities .
If your address has off-street park such as a driveway or a procure garage, you ’ re likely to receive a lower quote than if you ’ ve got to park your car on the street or away from the property because this will be deemed as a higher risk .
In the event that you have to park your car on the street, the insurance company will probably use your zip code to quantify the risk of the area. This means you ’ re likely to be negatively impacted if you live in a city or a notoriously rough part of town .
Remember: safe constantly means lower risk and lower premiums. If you ’ ve got a garage but it ’ s besides full to store your car, it might be worth having a good net out to help reduce prices .
Drive fewer miles
Another question your policy supplier will ask you when filling out your quotation mark is how many miles per year you drive on average. This will affect your indemnity because the more miles you drive, the more likely you are to be involved in an accident. As a consequence your insurance company will likely quote a higher premium .
however, driving fewer miles will have the face-to-face impression and reduce your bounty. Find ways to save mileage by car sharing to work, walking/cycling when possible or taking populace transmit for longer travel .
Remember: it ’ s important to be honest when starting your expected mileage or you may risk reducing your call measure or even voiding your indemnity .
If you can, pay upfront
How you pay for your car policy can besides affect how expensive your premium will be. You ’ ll be given the option to pay monthly or for the year once you ’ ve decided on a policy, and it ’ ll be cheaper overall to do the latter. however, this is only advise if you have enough saved up and can afford to do indeed, particularly as the premiums are much higher for new and new drivers .
monthly payments are more expensive than the flat annual amount because they are like to finance payments where you receive the full cover but don ’ triiodothyronine yield for it all until the final month of your policy. This means for the months up to the concluding requital you will be paying concern. however, monthly payments can be beneficial because it spreads out the price which is convenient if you have a bunch of outgoings or simply can ’ thymine afford to pay all at once .
Will a driving course lower my premiums?
Advanced drive courses seek to further prepare drivers and help them become safer and more observant while on the roads. Examples of driving courses include the government backed Pass Plus and IAM RoadSmart .
While some insurers will recognise an progress drive run as a step towards becoming a lower-risk driver and adjust your premiums accordingly, not all insurers are alike and others may not reward your effort.s
We recommend that you weigh up the monetary value of the course and the policy together before making a decision. It might besides be worth contacting the insurance company ahead to see where they stand or researching on-line to see if others have received a discount rate having completed a drive run .
Remember: tied if the course doesn ’ thymine leave in short term savings with a reduction in indemnity, it may aid retentive term savings by helping you reach your no claims bonus .
How long will it take before my insurance price drops?
unfortunately there ’ s no magic trick total when it comes to seeing indemnity price drops, but normally the beginning three years of driving are the most expensive. With your first three years out of the way, you should notice your premiums steadily going down each year as you build up a no-claims bonus. This could even come deoxyadenosine monophosphate early on as your beginning reclamation, provided you don ’ thyroxine promote to a beefy cable car or change any details of your application that will negatively impact your quotation mark .
Although a lot of people think insurance costs on the spur of the moment drop at the age of 25, this is not guaranteed. While it ’ mho true that insurers may no longer classify you as a young driver and that indemnity costs decrease in line with feel, what ’ s most authoritative is that you continue to build up a no-claims bonus .
What’s a no-claims bonus?
so what is a no-claims bonus ( NCB ) ? A NCB is something you build up over time as you continue to drive without claiming on your indemnity policy. For example, an insurance company may offer a five-years no-claims bonus where drivers who have driven for the last five years or more without claiming on their policy will be eligible for a decrease in their insurance costs .
A NCB reduces your indemnity bounty because insurers will see you as less likely to make claims in the future. This means that the longer your streak continues the cheaper your premiums will become and a high NCB has been known to more than halve the costs of indemnity .
Should you have a minor accident where repairs are possibly less than the excess price you volunteered in the contract, you don ’ t have to make a claim and can keep your no-claims bonus. however, you ’ ll still need to report the accident for the insurance company ’ mho records otherwise you risk voiding your indemnity .
however, if you were to be inauspicious enough to have an accident where you needed to claim on your policy, your bonus would be reduced or completely cut depending on how long your NCB is. In the consequence of a claim, your no claims bonus will be reduced by two years as you can see in the table* below :
*figures shown may not be congressman of all insurers ’ demeanor .
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Need more information to help you get started on the road easier ? Check out our other new driver guides for everything you need .