You thought preparing for and passing your test was a nightmare. Don’t wake up yet, because there’s worse to come. Just wait until to try to get car insurance for the first time. The cost may surprise you.
Typically costly, the good news is that there are specialist providers of car insurance for new drivers, such as ourselves here at GSI Insurance. Just as the name suggests, this is insurance which you are unlikely to find from just any insurer, and it is specifically designed for young drivers such as yourself, just starting out on your driving career.
Why is specialist insurance necessary?
The main reason for arranging specialist young driver insurance has already been mentioned – and that is the very high price you are likely to pay any regular insurer for the cover you need. The cost of insurance for a young driver is often more than the price of the car he or she is driving.
And the reason for that is the high risk of a younger driver being involved in an accident – and costing the insurer, therefore, in terms of any settlement that needs to be paid out to injured third parties.
The Association of British Insurers (ABI) explains that insurance for younger drivers is inevitably higher because of the increased number of accident, injuries and deaths in which young drivers are implicated. Although drivers between the ages of 17 and 24 make up only 12% of the licence-holding population, says the ABI, they are involved in a quarter of all accidents resulting in death or serious injury.
Reducing the costs
In our guide to insurance for young drivers, we not only point out the advantages of specialist, niche insurance but also suggest some of the ways in which you might lower the cost of your premiums still further:
- one of the up and coming ways of linking premiums to the way in which a young person is driving is through the use of telematics;
- this involves installing in the car a “black box” capable of recording in real time factors such as speed, distance and time of day;
- the safer the driving performance indicated by the black box, the more likely is the young driver to earn discounts on the price of insurance premiums or an increase in the number of hours or miles that may be driven each day;
- whilst falsely claiming that the car you are driving is driven principally by one of your parents or another mature driver is a definite no-no, adding their name to your own insurance policy may help to lower the cost of your premiums;
- where parents have cover for their own cars, you might want to consider banding together in order to enjoy the discounts typically offered for a family fleet of cars;
Choose your car
- Auto Express makes the point that approximately one half of the cost of your insurance is likely to be determined by the type of car you are driving;
- the flashier, the higher the performance, the more you might expect to pay on car insurance – so you might want to aim for something more modest.
There is little way around the fact that insurance for young drivers is going to be expensive. By homing in on specialist, niche insurance and making simple decisions about some of the basics, you might still be able to keep the costs reasonably under control.