Young drivers tend to have an especially hard time of it – a vehicle is likely to be more or less essential for getting out and about to work and to socialise, they do not have a lot of money, any car they buy is likely to represent a very significant proportion of their available income, and the cost of young driver insurance may seem almost prohibitive.
Yet owning and driving that first car is an important rite of passage and one that is likely to set them up for a very many years on the road.
Is it possible for younger drivers to gain the essential skills and experience that may come only through running their own car, whilst at the same time saving money on the high costs of insurance?
Understanding the risks
In order to explore the possibilities of saving money on young driver insurance, it is necessary to understand why it so expensive in the first place.
The answer to that question is the simple statistical fact that young drivers pose a greater insurance risk. According to the road safety charity Brake, for instance:
- if you are a driver between the age of 16 and 19, you stand twice the risk of being killed in a car crash compared to a driver aged 40 to 49;
- one in four young drivers (between the ages of 18 and 24) are involved in a car accident within two years of passing their driving test; and
- if you are a male young driver, you are much more likely to be involved in a car crash than your female contemporary.
Managing those risks
If you are young and looking to save costs on young driver insurance, therefore, the important considerations are likely to come from sharing more of the risks with your insurer and convincing your insurer that you are prepared and able to buck the trend of accidents – and claims – involving younger drivers.
How might you do that?
- choosing the level of insurance that suits your purposes, of course, is one way of getting the best value for money – although you might want to keep in mind that the minimum third party cover is not always cheaper than more comprehensive cover;
- you take on more of the risks if you agree to an additional voluntary excess and are likely to be rewarded with discounted premiums as a result – since the compulsory excess is already likely to be very high for a young driver, however, remember that you are going to be liable for both compulsory and voluntary excess payments;
- with the help of the available technology and the real-time feedback it provides, you might also help to convince your insurer that your driving habits, skills and experience are helping to reduce the risk of an accident – this may be done by use of on-board telematics, which are discussed in further detail in our own guide to motor insurance for younger drivers.
There is unlikely to be any easy or completely painless way around the fact that younger drivers are going to pay more for their motor insurance. With the help of specialist providers such as ourselves here at GSI Insurance and attention to some of the more obvious steps, however, you might still significantly reduce the cost of your motor insurance.