Young Persons Car Insurance - Under 25’sWe have compiled a list of things that you should carefully consider if you are under 25 years of age, as each item is there to advise you on how you can reduce your premium cost;
Many young people like to make modifications to their cars to increase the performance or change the looks. The bad news is that this will make you uninsurable with many popular insurers and push the price of your premium up significantly with those that can insure you. Failing to report these modifications will almost certainly invalidate your policy in the event of an accident, which in turn defeats the purpose of getting insurance in the first place as its likely to leave you with a huge bill. Stay away if possible.
Unfortunately the sportier models of car manufacturer carry a significant overhead in terms of the premium and may result in you being refused cover or having to find cover through a specialist and more expensive insurer. Try to stay away from GTi type models as these naturally cost a lot more to insure due to their performance and desirability in terms of theft.
Engine Size and Car Value
Naturally the size of the engine and the value of the car that you are looking to insure will affect the price of your premium. Even an old car with a big engine will push up the cost of your premium significantly. Try to aim to get a smaller engine for your first car such as a 1.0 litre and then upgrade when you have some no-claims bonus years under your belt. After all your chance of having an accident are greatest during your first year.
Young drivers are considered a higher risk because of their lack of experience on the road. Passplus is a non-compulsory course which can be taken after you have completed your test and which aims to teach you safer driving tactics to employ on the road. The course is quick and relatively in-expensive, especially as some insurers offer big discounts for completion of this course. Find out the cost of your insurance with the PassPlus and see if a reduction in premium covers the overall cost. Even if you do only break even with the cost of the course in the first year - each subsequent year you will be making savings.
No Claims Discount
It is important to build up your no claims bonus time as quickly as possible as this is one of the best ways to reduce your premium. It is not uncommon for young drivers to find that their second year premium is almost halved if they manage to go through their first year without making a claim. So this is another reason to drive carefully and do your best to not be involved in an accident in your first year!
Insurers penalise young drivers very heavily if caught speeding. Young drivers are already considered a high risk category and a speeding ticket will increase the perceived risk of an individual even further. Don’t speed and save yourself the cost of a ticket and the increased premium that follows. But do remember that failure to report any tickets can invalidate your policy.
Try reducing the amount of mileage stated during your quote. Make sure that what you enter is reasonable based on your own estimates but don’t insure yourself for 10,000 miles per year if you are only going to be driving into town once a week. Again, mileage relates to perceived risk. A useful tactic in bringing down the cost of your premium is to lower your mileage and then pay for any unexpected increases should they occur.
Insure As A Second Driver
If you have the option of being insured on somebody else's policy (e.g. your parents) and you don’t have the budget to get your own insurance policy, then this might be the cheapest option for you. Unfortunately you it is unlikely that you will be able to build up your own NCD during this time (unless you use one of the very few insurers that do allow you to accumulate No Claims Discount), but it might be the best way to get yourself on the road and get some crucial experience under your belt until you have the money to invest in your own car and premium.