Guide to Car Insurance for Young Drivers

        

Why do I need Car Insurance?

You have passed your driving test and are looking forward to being able to drive your own car, but you will need to have car insurance. Young driver or old driver, it is compulsory to have car insurance as it is the law. Car insurance provides financial cover when you have an accident. Without car insurance you are breaking the law, you cannot get car tax to allow you to drive on the road, and you will be liable to pay for all damages, medical bills for injuries, compensation, not to mention legal fees.

So, what should you consider when looking for car insurance for young drivers?

The Cost of Car Insurance for Young Drivers

The most significant thing you'll notice when looking at insurance for young drivers is the astronomical cost. Car insurance prices are calculated on the likelihood that you are going to have an accident. Statistically, young drivers are more likely to have an accident due to lack of experience when driving. Over time you will build up driving experience that will enable you to react appropriately to driving conditions and be more able to avoid accidents.

Since the car insurance companies think you are more likely to have an accident, they think they are more likely to have to pay out, and so they cover their expected costs by charging more for car insurance for young drivers.

there are various factors that will affect the cost of your car insurance, ranging from policy types and the car you drive, to where you live.

Young Driver Car Insurance Policy Types

There are three general types of car insurance that everyone selects from, not just young drivers.

Third party

Third party policies cover any damage that you cause to other people, or their property. This is the minimum cover that you can get, and will probably be most favourable if you want cheap car insurance for young drivers.

Third party, fire and theft

This car insurance policy is the same as third party, but also covers the cost of your own vehicle if it is stolen and not recovered, or has a fire. It does not cover any damage to your car.

Fully comprehensive car insurance

Fully comprehensive is the most expensive as it covers accidents whether you are at fault or not. It also covers damage to your own car.

Windscreen cover

This addition to nay policy covers the cost of replacing damaged windscreens. There is usually an excess charge, which means that you have to pay the first £50 of the cost, and the car insurance company will pay the rest.

Personal Use Only

Please note that your policy will only cover you for personal use, including driving to and from your place of work. If you are using it for business purposes whilst doing temporary summer work, you will not be covered. You will need additional business cover.

Young Driver Personal Details

As a young driver, your personal details will affect the cost of your car insurance. This includes your age, whether you are a male or female young driver, and your home address (postcode/zipcode).

Type of car being insured

The make, model and age of the car you drive will greatly impact on the cost of your car insurance. Car insurance for a young driver who drives an expensive car will be absolutely huge! Car insurance companies divide up cars into insurance groups. If you get a Walkers car guide from a newsagents, it will give details of every make of car including the insurance group. This will help when you choose what car to buy if you want to keep your running costs down.

The engine size will affect the cost, as a more powerful engine has more acceleration and is more likely to cause a crash. If you modify the car with a few Demon Tweeks then this may also affect the cost.

Other Factors Affecting the Cost of Car Insurance for Young Drivers

Excess

The excess is the first part of any costs that you have to pay when you make a car insurance claim. The car insurance company may force a minimum, but you can also increase the excess. This will reduce the amount you pay each year, but will increase the cost if you claim. You will have to judge what your savings will be.

No Claims Discounts

The more years you pay for car insurance without making a claim is to your advantage. For each year without a claim you will get an amount deducted from the insurance premium you pay. If you make a claim, you will then lose this discount and your car insurance premium goes back up to its maximum again.

No Claims Protection

You can pay extra to protect your no claims discount. This means that you can make a claim every 12 months for example without your insurance premium going up again.

Other Named Drivers

You can add other named drivers to your insurance which lets them drive your car using your insurance policy. This can reduce young drivers car insurance if the other driver is older, but can increase it if they are younger. Ask your insurer if you want to get auto insurance with boyfriend and girlfriend if you live together. You may find that rather than getting young drivers car insurance for your own car, you persuade your parents to buy the car and own it, and add you as a named driver. You will have to ask the car insurance company when you get quotes.

Where to get Car Insurance for Young Drivers

Always shop around and get quotes. Car insurance brokers can find good deals, or the best way is to use an insurance comparison website such as confused.com. Ask your mates about their experiences with getting young driver car insurance and what they chose.

Whatever young drivers car insurance policy you get, always check the small print on any car insurance policy.

---

Email this to a friend   |   Printable version

---