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Car insurance for the young driver Finding affordable car insurance can be a notoriously difficult task for a young driver in the age range of 17-24 years of age. New and young drivers are the most inexperienced drivers on the road and as such are more likely to be involved in accidents. Less than 20% of all drivers on the road are under 25 and yet they are responsible for a third of all car insurance claims that are made. Due to the increased chance of a young driver being involved in an accident and thereby being more likely to make a claim the cost of an insurance premium will be higher for a young driver than that of a group such as the over 40s. How can young drivers save money on car insurance? There are a number of things for the young driver to consider if wanting to keep their car insurance affordable. The first choice is to choose a suitable amount of cover; this will fall into one of the following categories: Third Party Only (TPO) – This is the most basic form of insurance that is legal in the UK, this provides cover for any injuries to other people or their property, as well as liability for accidents caused by passengers. Third Party Fire and Theft (TPFT) – This provides the same cover as Third Party Only, and in addition will cover against damage caused by fire or the theft of the vehicle. Comprehensive cover – This type of insurance should provide cover for the maximum number of eventualities, care should be taken with this to check what is actually covered by this policy as the exact details will vary from insurer to insurer. On top of the type of policy there are a few things that can be done to further ensure that the price of the premium is as low as possible: Choose cars carefully – Choosing a car that will impress your friends is probably not the way to go, a car with a smaller engine will cost less to insure than the more powerful engines, also a car is cheaper to insure with age since premiums drop when the car reaches 5 years and again at 10 years of age. Improve security – Having an alarm, tracker or immobiliser installed will lower the chance your car will be stolen and possibly earn you an insurance discount. Car usage – Most insurers will offer “social, domestic, personal and commuting” but if you do not use your car to get to and from work tell the insurer and you may be able to earn a discount. It may also be possible to get a discount if you agree to a curfew after which time you will not use the car. Limit your mileage – Agreeing to an annual mileage limit is useful if you only need the car for limited periods, for example a 12000 mile limit could earn a 5% discount. Pass Plus – The Pass Plus course is a good way to gain extra experience on the roads, in some areas local authorities may also pay part of the cost of the course. A saving of upto 35% can be made if you complete the Pass Plus course within 12 months of getting your licence. Rapid bonus schemes – Some insurers will allow you to build your no-claims discount at an increased rate with a full year’s no-claims bonus possible within 6 – 9 months. What about being added to someone else’s insurance? It is an unfortunate fact that many young drivers are driving illegally and probably won’t have even realised it, this is due to a common activity which is known in insurance terms as ‘fronting’. The most common occurrence of this is when a parent will insure their child’s car in their own name while the child is added as a ‘named driver’ on the policy. This activity will usually allow that child to pay a lot less for their insurance and gain the advantages of the principal driver’s policy such as benefitting from their no-claims discount. The fact is that the main user of the car must be the principle name on the insurance for the policy to be valid. This activity is actually illegal and could lead to many more problems than saving a little bit of money will have avoided. If an insurance claim is made while the young driver is using the vehicle and the insurance provider suspects that ‘fronting’ may be occurring then they will often invalidate the policy. Not only will this leave the car owner potentially having to pay for the repairs or a new car but could also result in the young driver involved being in a lot of trouble since it can be perceived that they are essentially driving without insurance. This could mean a court appearance and between 6 – 8 points on their licence which within the licence probation period will mean having their licence revoked and having to pass the driving test again. A case of ‘fronting’ in the insurance records of those involved can also make it difficult for both parent and child to find insurance cover again, and it will be even more difficult to find it cheaply. With a little consideration about what you need from your car insurance combined with shopping around using an online car insurance comparison website you could ensure that your insurance is both suitable and affordable.

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