If you are a young driver getting your driver’s license can be very exciting and actually getting your hands on your own car is even more exciting. What is not so great about this coming of age rite is the price of young drivers car insurance.
The Problem with Car Insurance for First Time Drivers
There are many parents who offer to help their child buy their first car, but on the condition that they pay their own insurance. This, to most young drivers, sounds like the most amazing deal ever – right up until they get their first insurance quote. Then things may not look so rosy and actually getting the car on the road (legally) becomes a bigger financial burden than most young drivers expected.
Why is young drivers car insurance so expensive? If they passed a legal road test, surely this means they are proficient drivers and are entitled to cheap car insurance rates like everyone else? Unfortunately, however hard a young person may have worked to learn the rules of the road and become a good driver, the odds are stacked against them – or rather the statistics are.
Insurance companies put a lot of value in statistics and year after year, unfortunately, those statistics show that younger drivers are just not good drivers – in fact, they are the worst drivers of all. In the UK one in five drivers under the age of 21 is involved in a car accident of some sort in the first year that they have their license. So with this in mind, it is not too surprising that car insurance companies across the world reserve the highest premiums of all for young drivers car insurance.
Saving Money Is Possible
It is not all doom and gloom for young drivers when it comes to affording to insure their car though, there are ways they can save money. Here are a few ideas:
Get a Sensible Car
A young person driving a sportier car is a huge red flag for an insurance company. On the whole statistics show (yes them again) that sports car drivers get into more accidents. The same goes for cars that are commonly used as street racing cars.
In order to keep your costs down choose a less controversial car as your first, preferably one with a lot of safety features, something that earns brownie points with the car insurance companies for anyone. Once you have established a good driving record and have a few years experience under your belt, you can opt for something more exciting.
Think About Taking a Higher Deductible
If you are confident that you are one of the 4 out of 5 young drivers who will not be involved in an accident, then taking a higher deductible can save you quite a lot of money on almost any insurance policy. Just be prepared for the fact that if you do have a small “ding” you will have to cover the cost of the repairs yourself, without the insurance company ‘chipping in’ to help.
Third Party Only is Not Always the Best Answer
A lot of young drivers opt for third party only car insurance because it is the cheapest option available to them – the minimum coverage required by law. This does not always pay off in the long run though.
Many insurance companies take that thinking into consideration in the case of a young driver, and will actually make the third party insurance premiums almost as high as the more comprehensive coverages because they know that the risk is higher that they will be paying out on the policy anyway.
Take an Extra Driving Course
Taking a defensive driving course will look good in the eyes of car insurance companies, even if it is not so long since you took – and passed – your first test. These courses are usually quite inexpensive and do not take too long (about an afternoon) and if you “pass”, which you should as all the rules are fairly fresh in your mind, then you are almost guaranteed at least a small premium discount.
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