A Guide to Young Drivers’ Car Insurance

Young Drivers Car InsuranceMany new drivers in the United Kingdom are able to obtain their license at the age 17. By law, young drivers are required to have insurance to operate a motor vehicle. Younger drivers, however, are faced with high premiums because they are more likely to have a claim or an accident on the road.

According to some experts, one third of fatalities are caused by young drivers between the ages of 17 to 25. This factor and others cause the premium of young drivers to be more expensive than mature drivers.

What types of Insurance are Available to Young Drivers?

Third Party Cover
Third party cover only covers the other vehicle in the accident if the young driver is at fault. The young driver’s vehicle will be repaired at their expense, not the insurance company’s expense.

Third Party Cover with Theft and Fire
Third party cover only covers the other vehicle in the accident if the young driver is at fault. The young driver’s vehicle will be repaired at their expense, not the insurance company’s expense. However, this insurance also adds coverage in the event of theft or fire damage.

Fully Comprehensive Cover
Fully comprehensive cover insures both the insured person’s vehicle and the other person’s vehicle in the accident. This insurance may also include medical coverage of the individuals in the vehicles at the time of the accident and damage to personal belongings inside the vehicle.

Why are Premiums higher for Young Drivers?

Young drivers are also more likely to file a claim for theft, fire, or vandalism to the vehicle. The more claims the young driver is likely to have the higher the premium will become. Younger drivers are more likely to show off their new driving skills to a car full of friends. They become distracted while talking to friends and are more likely to cause an accident. This factor may raise premiums. Younger drivers are also more likely to be involved in an accident within two years after passing their driving test. According to these same statistics, during the first year of driving, one in five young drivers will have an accident on the road. Insurance companies take all of these factors into consideration when calculating premiums for car insurance. The more risk the person carries, the higher the premium will become.

How to save Money on Car Insurance for Young Drivers?

1. Young drivers seeking to save money should consider a vehicle that is simple with a small engine. High performance cars with expensive tires, spoilers and other features will increase the cost of the insurance. Expensive cars will also increase the cost of insurance. Insurance companies factor in the cost of replacing expensive features.

2. Young drivers should also avoid becoming an additional driver on their parent’s insurance. This prolongs the time that the young driver will qualify for a “no-claims” discount. The no-claims discount basically awards drivers a discount at certain intervals if the driver has no claims.

Typically, the maximum amount is 70%. Drivers may achieve this discount after 3 to 5 years with no claims. No claims discounts are typically transferable to other insurance companies. Therefore, individuals want to qualify as early as possible for the no claims discount.

3. Drivers should also not insure the car in the parents’ name and include themselves as the main driver. This is termed “fronting.” In the event of an accident, the claim may not be paid.

4. Young drivers may also take a driving course in order to lower the cost of insurance. This is known as the “Pass Plus” program. The driver is required to take night courses that entail motorway and town traffic driving techniques. When the young driver receives his or her certificate, he or she can save as much as 35% on car insurance.

5. Weigh the options of whether or not the young driver needs third party cover or fully comprehensive cover. Third party cover will only cover the other person’s vehicle in the event of an accident. This may lower your cost for insurance as well.