In one of its latest reports – dated January 2016 – the Money Saving Expert reveals that the average cost of young drivers insurance for someone aged between 17 and 22 is already more than £1,200 a year. That figure is rising, adds the site’s correspondent.
Quite simply, for anyone starting out on their driving career, insurance is not only essential but also extremely expensive.
The reason for that, of course, is that insurers typically regard the younger driver as a greater risk – more likely to have an accident and need to claim on the insurance.
At GSI Insurance, we may not be in a position to dispute the risk factors posed by young drivers, but we do believe that they should be given a fair chance of being able to stay on the road and develop their driving skills. Our own guide to young drivers insurance, for example, suggests a number of options that may be available:
What not to do
- perhaps with the best of intentions, there may be many a parent tempted to arrange insurance in their own name for a car which is going to be driven mostly by their son or daughter;
- the premiums are going to be considerably cheaper, since they are determined with reference to the experience and maturity of the insured;
- misleading your motor insurer in this way, however, is known as “fronting” – an example of insurance fraud which is almost certain to invalidate any cover any may also lead to criminal proceedings;
- a perfectly acceptable option, however, is to add a second, more experienced named driver to the policy held by a young driver;
- depending on the age, experience and occasions when such a named driver is likely to be driving the car, insurers may typically lower the price of the premiums;
- young drivers are almost certain to face a high compulsory excess on their motor insurance;
- if you are confident in being able to stay out of trouble and avoid having to make a claim, however, acceptance of a further voluntary excess may considerably reduce the cost of your premiums – on the logic that an excess is an uninsured risk and therefore does not feature in the insurer’s calculation of the necessary premiums for those risks that are covered;
- insurers also tend to work to the logic that the further you drive, the longer you spend on the road and the more likely you are to have an accident and make a claim;
- you may be able to reduce the cost of the premiums, therefore, by agreeing to a limit on the number of miles you intend to drive in any one year;
- a variation on this theme might be your agreeing not to drive during certain hours of the day;
- any driver – but a young driver in particular – is at greater risk when driving in the evening or at night;
- by avoiding driving during these hours, you may earn a discount on your motor insurance premiums;
- in support of both a mileage restriction and night time curfew, there are now available in-car, real time telematics devices which let the insurer know not only when and for how many miles you are driving, but the way in which you are driving too;
- such “black box” technology may help to reduce your premiums.
Young drivers insurance is expensive – and seems likely to become even more so. But, with the help of a specialist broker, you may still be able to explore a number of options for keeping those cost within more or less reasonable bounds.