Lowering Car Insurance for Young Drivers

5 Easy Steps to Reduce Your Car Insurance

If you want to save money when you purchase your car insurance, particularly as a young driver, here is a simple 5 step plan that works every time. You can save money online rather than ploughing through the Yellow Pages.

STEP 1 - Choose the right cover 
Take Third Party Cover only. Assuming you are like most new drivers, your first car is usually a cheap one. If it is worth up to a few hundred pounds, or even up to £1000, then consider getting the very basic level of cover - Third Party Cover only. If you think that is too risky, and you feel your car is worth more, then go for Third Party Fire & Theft Cover. You will still save a lot over Fully Comprehensive Cover and you will still be covered for most non-fault claims.

STEP 2 - Lower your chosen cover still further
All of the following can bring your chosen level of cover down even more - Get a cheap Group 1 or Group 2 rated car, make a point of your low mileage (if your car is only for local journeys), consider fitting an alarm / immobiliser (if your car doesn't have one), keep your car off-road or garaged overnight, don't have cover you don't really need like a courtesy car (it all gets added to your premium), increase your excess, take the Pass Plus test if you are newly qualified, take an advanced driving test, put an experienced named driver on your policy, don't pay by direct debit (use a low rate credit card).

STEP 3- Get at least 5 targeted online
You simply must put aside about an hour to complete a few online quote forms. It may sound like a bind, but if we can show you which companies to contact, brokers are the best place to start, then you could be saving £200 - £500 for 1 hour's work!

STEP 4 - Check the results

If you want to take a crack at further reducing these quotes then do the following. Take the three cheapest quotesfrom the above listed price comparison / broker sites, and then go to each individual insurers web site. You then request one separate quote from each of these three companies. You do this because it is not uncommon for a Direct Insurer to look at your young driver car insurance quote and lower it even further.

STEP 5 - Contact your current insurer

Once you have secured your definitive lowest quote it is time to contact your current provider. You then give your current insurer the opportunity to beat your best quote. 

Student Car Insurance

Choose the right policy cover

Do you really need Fully Comprehensive insurance? If your car is worth several thousand pound then the answer is probably yes. If you have a cheap runabout, it may not be necessary and basic Third Party cover may well be enough.

Voluntary excess

If you agree to accept a higher voluntary excess (the amount you agree to pay in the event of an accident), the lower your premium is likely to be. Just make sure you can afford to pay the amount should the worst happen.

Avoid modifying your car

Try not to modify your car as will directly affect the rates you will be quoted. For example by adding alloy wheels to a car, that were not standard at manufacture, you could alter the insurance group rating applied to your particular vehicle. The insurers work with the manufacturers so that a particular model of car can be insured to a standard. If you modify your car and don't tell your insurer then you risk not getting paid out if you need to claim.

Make your car more secure

Get a professionally fitted alarm serves two purposes - Thieves will probably not attempt to steal your car in the first place and insurers sometimes offer additional discounts. Always remove any valuables from your car, or hide them away if you have to leave them in the vehicle.

Be truthful 
Make sure your application is true to the best of your knowledge. You enter into a contract with an insurer in good faith. If you lie, then need to make a claim, an insurer can refuse to pay out on the policy. Once you have insured your car you must then inform any changes in your circumstances, that may affect your policy, to your covering insurance company. This would include -

• car modifications
• moving house
• points on your driving license
• other people using your car

Avoid sports cars

If you are student then chances are you're well under 25. After 25 your premiums will start to come down significantly. Until then, you don't want to take your premiums even higher buy owning a sports car. Most small super minis fall into the lower insurance groups - 1 to 4, and most family cars in the 5 - 11 group. Get a car with a small engine that is cheap to run and your car insurance will be more manageable.

Be a careful driver

Being a considerate and careful driver, with a good attitude to other motorists, is the best way to avoiding accidents. You will build up a good history of no claims bonuses and gradually lower your premiums each year. 

Car InsuranceNews

Smashing times ahead

According to Lloyds TSB Autolease, one of the UK’s leading contract hire and leasing companies, October and November sees a big increase in replacement glass bills to their vehicles.

It is brought about by the onset of Winter and changes to GMT from British Summertime. As the nights draw in more quickly, this provides even greater opportunities for thieves to increase break-ins to susceptible vehicles.

We all know the dangers of leaving items on show in cars, that attract the would-be thief, but dimly lit car parks also provide a haven for car crime to soar.
Lloyds figures show:

•   Replacement body glass up 55% in October/November

Driving during the Winter brings its own hazards. Darker nights mean headlights should always be on, and a reduction in speed is a must when frost has been forecast.

Failure to plan your journey and to anticipate the prevailing road conditions is one of the biggest reasons for car insurance claims in the Winter months ahead.

The answer reducing these increased risks is fairly simple, slow down and park your car in well lit areas. This will also avoid you making extra claims on your car insurance and pushing up premiums.

Guide for learners and young drivers

Limit your mileage

If you have a low annual mileage then you may qualify for a discount. Do not be tempted to deliberately underestimate your mileage though.

Just passed your test?
If you have recently passed your driving test, look at whether it would be cost-effective to complete the Pass Plus training programme to qualify for car insurance discounts. 
Size matters...
A car with a smaller engine usually means you'll get a cheaper quote. Also, don't modify it either by adding alloy wheels or a big exhaust to improve performance.

Guide for learners and young drivers

Increase your excess

Consider increasing your voluntary excess payments on your car insurance policy. You can add as much excess as you like but please bear in mind that you should make sure you can afford to pay the car insurance excess should the worst happen

Upgrade your alarm
By installing a category grade 2 or three Thatcham alarm, some car insurance companies give up to a 10% reduction in their premiums.
Can you park your car off road or in a garage?
By parking your car in a garage you could vastly reduce the chances of it being damaged or stolen. You could also get a lower car insurance quote and this could help reduce the premium by around 5%.

Is Third Party car insurance all you need?

If you have a really cheap car, not really worth that much, consider Third Party car insurance cover as it's generally the cheapest. You could get quotes on all three car insurance cover options for private use.

Get at least three car insurance quotes - from online

Why? Well it will save you time and money - up to £800 per year. Online car insurance companies that can offer you immediate quotes are geared up for one thing only - getting you the cheapest car insurance rate possible. Many car insurance companies also give a further 10% off their rates for buying online.

Target the right car insurance company for learner drivers
Don't waste your time getting just any online car insurance company to quote. A large proportion of car insurance companies don't want to take on learner drivers or young drivers because of the increased risk. Here are some of the statistics for new and young drivers

• Over 30% of all young male drivers will write off a car in their first year of driving (it is less than 15% for young women drivers that are likely to do the same).

• Under 20 year olds make up just 3% of all drivers but 25% are convicted for crimes of causing death by dangerous driving.

• 25% of drivers under 21 who have an accident are shown to have lost control of their vehicle. 
Build your own no-claims bonus from day one
As soon as you start paying for your own car insurance policy, in your own name, you will be saving on your car insurance over the long term. It may seem as though you have enough expenses, what with buying your car to start with, but some car insurance policies can start you off with a 30%+ no claims car insurance bonus.
Add an experienced driver to you car insurance quote
It can pay to add an experienced additional driver to your car insurance quote. There are number of companies who give up to an additional 5% discount off their car insurance online quotes. It is certainly worth adding a more mature driver to your policy if you can.

Learner Driver Guide to Reduce your Insurance Premiums

Guide for learners and young drivers

First of all - decide on what cover you need

Do you need fully comprehensive car insurance, third party fire and theft car insurance or third party car insurance? Check here for a full explanation 

Fully Comprehensive car insurance 

Fully Comprehensive Insurance covers you for everything Third Party fire and Theft does, but in addition you will normally be covered for loss or damage to personal effects, accidental damage and medical expenses too. On top of this there could also be optional extras you can take out like breakdown cover or legal expense cover, for example. Although not essential, they do give the policy holder extra protection and peace of mind against many common motoring occurrences.
Fully Comprehensive Insurance covers you for everything Third Party fire and Theft does, but in addition you will normally be covered for loss or damage to personal effects, accidental damage and medical expenses too. On top of this there could also be optional extras you can take out like breakdown cover or legal expense cover, for example. Although not essential, they do give the policy holder extra protection and peace of mind against many common motoring occurrences.
Once you have decided on which type of insurance to buy, you next need to consider the finer details of the policy. Each insurer will offer you these three basic types of insurance, but when you come to purchase one there will be optional extras that you can have which may affect the premium
Once you have decided on which type of insurance to buy, you next need to consider the finer details of the policy. Each insurer will offer you these three basic types of insurance, but when you come to purchase one there will be optional extras that you can have which may affect the premium
What is Third Party Fire & Theft Insurance

• Liability for injuries to other people, including passengers

• Liability for damage to other people΄s property

• Liability of passengers for accidents caused by them

• Liability arising from the use of a caravan or trailer, while attached to the car

• Liability protection added to cover losses in the event of fire or theft of your vehicle

What is 'Third Party Only' Car Insurance Cover?
In other words, if you run into another car and cause damage to that car and injure the occupant(s) of that car, a Third Party Only policy will pay for the repair to that other vehicle, and will pay for any medical claims or injuries suffered by the occupant(s) of that other car and any passengers in your car other than you.

A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.
In other words, if you run into another car and cause damage to that car and injure the occupant(s) of that car, a Third Party Only policy will pay for the repair to that other vehicle, and will pay for any medical claims or injuries suffered by the occupant(s) of that other car and any passengers in your car other than you.
A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.
A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.

This is the most expensive of the three types of Car Insurance. It is also the insurance with the most features and the broadest spectrum of cover. A Fully Comprehensive Policy not only insures you against damage to your car but also meets any cost of repairing damage to other vehicles, regardless of who was at fault. 
For example, optional legal expense cover on Fully Comprehensive Insurance will pay any legal expense that arises from colliding with an un-insured car, although there is normally an upper limit you are not allowed to exceed in situations like this. Always read the small print carefully as these upper limits will be quoted in there, and being familiar with limits and exclusions in your insurance policy can save you any nasty surprises later. 
This type of cover usually includes:
Choose the right cover according to the value of your car and what risk you are prepared to take in terms of financial loss. If you are unsure seek the advice of an insurance company direct.
This covers the policyholder against damage to a third party's property or to the third party themselves. 
In addition, if your vehicle is stolen or catches fire, a Third Party Only policy will not make any payment toward the theft or repair of the vehicle.
Do you only need third party cover  - if so you could save a lot of money. This is also more likely to be suited to older vehicles with low residual value.