Learning to drive and getting your hands on your very first vehicle is an exciting part of our lives, though trying to afford car insurance as a new driver can be a nightmare.
In fact, the quote for car insurance can often be higher than the price tag for a new driver’s first vehicle!
The reason why insurance premiums are usually high for new drivers is the level of risk that this group unfortunately brings with them, as they get to grips with being behind the wheel.
It has actually been estimated that one in five young first time drivers will likely have an accident within just six months of them passing their driving test.
This amongst others is what raises car insurance rates and makes it so expensive for 18 year olds as these factors are well calculated and affect the rates.
As a result of this, those aged between 17 and 22 are currently faced with their annual insurance policy costing them about £1,350 on average.
With the additional costs of getting through driving lessons, the theory test and the practical test also having to be factored in, many prospective drivers may struggle to make ends meet as they vie to start driving.
Fortunately, Lookers is here to help. The car dealership, which also offers a range of Motability cars on lease every three years for new drivers who qualify for this government-funding scheme, has put together this handy guide to help you get cheap car insurance and how you can lower your car insurance premiums even when you’re a new driver, either under 20, under 25 or above and save cost.
Tips When at the Car buying Stage
When you’re purchasing your first car, take a look at new vehicles which come complete with free insurance.
Dealerships these days can very cleverly package together not only the vehicle, but the finance and insurance too.
You can get the service of a car buying expert to assist you in the smartest way to buying a car and get free car insurance. This can help first time drivers keep costs down by looking for finance cars with free insurance.
Be sure to carry out some research to understand the car insurance group which the vehicle falls into as well. The Group Rating Panel is administered by the Motor Insurance Repair Research Centre ((MIRRC) in thatcham, which meets to assign new car models to an insurance group from 1 (cheapest to insure) through to 50.
Each group has the kind of cars that can fall into the category based on several variables which we’re not explaining here today and the average cost of such cars in the group.
Cars in the highest groups, typically high-performance models, are likely to cost insurers the most in claims. These recommendations may be sought out by insurers when they are calculating an insurance premium, especially since official figures state that motor vehicle repair costs account for over half of all the money paid out in claims.
As much as you may desire to make your first car your own, it’s also wise to avoid customising your vehicle too much. The more changes that are made to a car, the more the policy holder will be charged.
If modifications are made, it is prudent to ensure that the insurance company is informed too. Failing to do so may invalidate the car insurance policy.
One addition that you should consider for your first car is a telematics device. This gadget, which is commonly referred to as a ‘black box’ is installed and monitors the driver’s actions while behind the wheel.
There has always been good reviews that this device works for new drivers, tracking their performance on the road and you can buy one with average cost price of $25 in UK, USA, India depending on the brand, quality, supplier and location. It could be cheaper and a little higher too.
The ultimate goal of the device is to demonstrate that you are a careful driver and see those premiums come tumbling down once this is proven. However, be aware that this could work against you, as bad driving could increase premiums!
Tips when looking for Car Insurance Quotes
When filling out forms to get a car insurance quote, think about adding a second responsible driver to your premium as this can help to spread the risk that you possess as a new driver.
If you are considered to be a high-risk driver, then adding in to the mix someone with a good no claims history may result in a cheaper policy.
These are the simple tips that can help you getting cheap insurance cost and if there’s no accident and there’s no claim in your first year, definitely, your cost will go down.
However, the responsible driver should have as clean a driving history as possible and it may be trial and error to find the optimal person and by extension the best deal.
Remember though, the responsible driver should be realistically expected to drive your car.
Try to get the perfect balance when deciding on the right level of excess to have on your insurance policy as well. Car excess is a fixed amount that you are expected to pay if you make a claim.
For instance, if your excess is £200 and you make a claim for £1,000, your insurer will keep the first £200 and give you the remaining £800.
When car insurance is first taken out, you have the option to set the excess and in return can see a reduction in monthly premiums.
With this in mind, new drivers can keep the cost of their car insurance down by setting the excess at a higher level.
This is because a higher excess will result in lower premiums, though it’s also important that policy holders are aware that they must be able to afford the premium should a claim be made.
Even if you’ve found and agreed to a superb car insurance deal for your first year, the work doesn’t stop there. Insurers are known to charge increasing amounts each year in the knowledge that inertia will stop policyholders from switching.
It’s therefore in your own interests to always shop around, particularly ahead of an existing policy coming to an end.Kindly note that we're affiliated to Amazon