Making the most out of your young drivers policy
19 Jun 2015
Every year, hundreds of teenagers in the Bailiwick and the Isle of Man turn 17 and the vast majority are eager to get behind the wheel for the first time. But as every parent who has already been through this experience knows, young driver insurance is one of the highest car insurance premiums around. Here we take a look at ways of reducing the cost to help you get the best price for your young drivers policy.
Type of car -Don't choose a high power engine, or luxury car as your first vehicle. These types of car are typically more expensive to insure, especially for young and first time drivers. We'd recommend buying a car that has a smaller engine size, and is of a standard model, and free of modifications. A three or five door hatchback with approximately a one litre capacity, or a car in a lower insurance group may be best for you. Don't go out and buy the flashiest, most expensive car you can afford. High value, flashy cars are considered a high risk.
Types of cover -Third party cover is the minimum amount of cover you need to legally drive on the road. This type of cover will protect you against damage to other people's property or injuries you may cause to them. Third party fire and theft also covers you for loss or damage caused by fire or theft to your own vehicle. It does not cover any accidental damage you may cause to your own vehicle. Comprehensive cover is a bit more expensive, but it protects you for accidental damage to your own vehicle. That can be particularly useful on a small island, which has lots of granite walls!
Use a broker- A broker will have access to a wide range of insurance companies and so will be able to find the most competitive quote.
Avoid motor convictions and accidents -Be sensible and drive safely, and avoid motor convictions. Any motor convictions relating to dangerous driving will undoubtedly influence your premium. Never ever drink and drive, or speed. A young driver with any of these types of conviction on their record is likely to find it impossible to get insurance. If they do, it's likely to be so expensive that it won't be worth your while. If you keep accident and claims free for the duration of the cover, when you renew your insurance you will be entitled to a 'No Claims Bonus' discount for the previous year of safe driving up to a maximum of five years.
Choose your drivers carefully -When you are getting your insurance quote, it may be cheaper to limit the cover to yourself. However, you may be able to add named drivers to your quote at no extra charge. The way it works with most insurers is if you are the highest risk driver, adding other drivers such as your parents who should be of a lower risk will not bump up the price.
Pay in full for the lowest price available -This will mean no monthly payment charge. If you are lucky enough to be able to pay in one go, do that as it will be cheaper overall.
Avoid modifications -Modifications, which increase the performance of your vehicle, are also likely to increase the insurance premium. By avoiding changes such as engine modifications or a lowered suspension, you can keep the price of your insurance down. Of course not all modifications will increase your insurance premium. It is best to check with your broker if the insurers will accept the modification and if there will be an increase before you go ahead with any modifications.