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Cheap car insurance for young drivers


Young drivers who can`t wait to get behind the wheel of a car quickly have their spirits dampened by the costs associated with insuring their vehicle. According to research by Sainsbury`s Bank over the period June-December 2008, car insurance premiums for young motorists averaged £1,277.33 – more than double that of the national average for all drivers.


As a consequence young drivers must be careful about the car insurance options they choose. Broadly, there are three alternatives:


- Third party car insurance
Protects other vehicles damaged in an accident and covers injuries caused to third parties. It does not protect your vehicle.


- Third party fire and theft car insurance
Adds fire damage and theft protection for your own vehicle to third party cover.


- Comprehensive cover
The most expensive but most complete option. Features vary among providers but may include accidental damage, personal possessions, repairs to your vehicle and a replacement in case of a write-off.


What has influenced young driver premiums?


Young drivers are paying for the sins of their peers when it comes to driving. According to statistics in the Daily Mail, one in three young male drivers will write-off a car in their first year of driving; one quarter of drivers under the age of 21 lose control of their vehicle during an accident; and one quarter of convictions for causing death by dangerous driving are to motorists under 21 even though they only make up three per cent of the market.


In light of such statistics, car insurance companies have little choice but to increase premiums based on the increased risk presented by the 17-24 age group.


What should young drivers look for from a policy?


For most young drivers the chief concern will be price. Many youngsters drive inexpensive cars which can make third party cover preferable over comprehensive deals. Even though the level of cover is less extensive with third party cover, youngsters can save considerably on their premiums – an annual comprehensive policy could even surpass the value of the car.


Nevertheless, young drivers should still consider the policy options available to them particularly as some insurance companies tailor their policies to reward safe young drivers. Schemes include:


Rapid bonus –
This allows a young driver to earn a full year`s no-claims bonus in nine or ten months.


Pass Plus discount –
The Pass Plus course is taken after passing a driving test and can save up to 35 per cent on premiums with some insurers.


Pay as you drive schemes –
Some policies now reward drivers based on their habits – so avoiding rush hour traffic for example, could help you save if you agree to have a box installed into your car to verify how you drive.


In addition, young motorists should think about the policy features they need. For example, do you really need a courtesy car if there is another vehicle available in the household?


Why is it so important to compare car insurance providers?


According to the AA British Insurance Premium Index, the difference between average premiums for those who do and don`t shop around can be huge. In January 2009 it found that average premiums on comprehensive cover cost £741.66 – but drivers that compare quotes typically earn premiums of £500.54.


With such significant savings to be made shopping around is crucial. However, you shouldn`t sacrifice cover just to get a cheaper deal. That is why young motorists are advised to use a comparison website to compare cheap young driver car insurance and find a deal that suits their needs.