Thoughts

Young Drivers: 5 Ways To Save Money On Your Insurance

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Insurance costs continue to rise, this is a result of changes to the way in which compensation payments are calculated and an increase in recent years in fraudulent whiplash claims.  Young drivers are regarded as high risk by insurance companies and the brutal fact is that over a fifth of 17-24-year olds will have a crash within the first two years of passing their test. For young drivers, fully comprehensive policies are cheaper than third party, fire and theft policies because insurers deliberately price third party policies high to discourage high-risk drivers from choosing this policy as an inexpensive way to get insured.  

Insurance companies tend to have the best prices for their new customers, so it’s worth shopping around and negotiating quotes because the savings could run into hundreds of pounds.  Here are some other suggestions for ways in which you might reduce that premium.

Take Extra Driving Qualifications

It depends on your location as to what is available. In the UK, they actually offer six-hour Pass Plus courses, run by the AA, which aim to develop existing skills, introduce new skills, improve road awareness and teach you how to reduce the risk of an accident and develop habits of road courtesy.  Insurance companies look favourably on these courses and are likely to offer lower premiums to those who have taken part.

Choose a car that is cheap to insure

You may have a dream of driving a big, fast car or buying an old luxury vehicle, but if you do, expect to pay a high premium.  Insurance companies group cars according to data that reflects their insurance risk, so choosing a car that is deemed to be safe and reliable will help you to secure the cheapest possible insurance.

Insurance companies don’t like cars that have been modified

Don’t buy a car which has modifications, however cool you think it looks, and don’t modify a car which you own and that includes something as modest as the addition of alloy wheels.  Some insurers will simply refuse to insure you at all and those that do will be increasing your premium because you will be judged to be a high-risk driver.

Pay your car insurance up front

This, of course, is easier said than done but if you can possibly afford to do it you will save a significant amount of money on the cost of your annual premium.

Lower your mileage

Many people overestimate their annual mileage and consequently pay a higher premium than necessary.  In the eyes of the insurance company, the less your car is on the road, the less chance there is of an accident.  Don’t just guess your annual mileage, try and get close to a realistic estimate. Consider whether you can reduce your annual mileage and thus save on running costs and insurance premiums.

It is important that you don’t make any hasty decisions when it comes to your car, your insurance and driving in general; these could all affect your insurance in the long term.  

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Olivia is psychologist and entrepreneur from Brisbane. Mother of two beautiful children and proud owner of two silly boxer dogs. She is passionate writer, a traveler and conscious consumer, seeking healthy and sustainable products to incorporate into the lives of her family. Her motto is “Be the change you want to see in the world”.

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