Car Insurance for New Drivers

“With as many as one in five new drivers being involved in an accident within just six months of passing their test, it’s not surprising that they face paying far more for their car insurance...”

WHILE IT'S NO SECRET THAT NEW DRIVERS face higher car insurance quotes than their more experienced counterparts, there are a host of ways to bring premiums down. To do so, it helps to know why new drivers are asked to pay more for their car insurance.

Unfortunately new drivers pay the price for their lack of experience and because statistically so many accidents occur during that initial period behind the wheel.

According to the Driving Standards Agency in 2008, one in five new drivers is involved in an accident within six months of passing their driving test. In addition, it is also reported that while only one in eight licence holders is under the age of 25, this age group actually accounts for one in three of all drivers killed on the UK's roads.

In fact, car insurers take into account a number of factors when assessing premiums including your driving history; your address; your annual mileage; your personal circumstances; and the vehicle you drive. While all of these factors influence premiums, new drivers are automatically hit by the fact that they have not 'proven' themselves to be safe drivers.

“Pass Plus offers tuition
to new drivers
in unfamiliar driving
situations such as
driving at night, in city
centres, on country
lanes, and in adverse
weather conditions.
Completing the course
could earn discounts of
as much as 35 per cent
on your insurance...”

Why it pays to drive safely

There are many advantages to safe driving — including saving money on car insurance. Most insurers offer no-claims discounts which reward you for staying claim free and could be worth as much as 60 per cent off your premiums after four or more years. If you're a new driver, you may not think this is particularly relevant — however, many insurers offer rapid bonus schemes to new drivers allowing them to earn a full year's no-claims discount in as little as nine months if they stay claim free.

In addition, the fewer claims that are made the less insurers have to pay out — and this can reduce premiums across the board. So here are some safe driving tips:

• Avoid dangerous driving: Stick to the rules of the road and don't give in to peer pressure or road rage — if someone drives aggressively keep your distance and keep your cool.

• Check your speed: Always stick to the speed limit. Not only could speeding see you hit with substantial fines and penalty points on your licence but two or more offences could even cause your premiums to rise by as much as 74 per cent with some insurers.

• Don't drink or take drugs and drive: Alcohol can impair your reaction times and even prescription drugs can cause drowsiness behind the wheel so be careful about what you take before you drive.

• Keep your distance: Avoid tailgating and leave at least a two second gap between you and the car in front.

• Stay off the phone: Numerous studies, including a report by the Royal Society for the Prevention of Accidents, suggest that using a mobile phone behind the wheel can be distracting for drivers. So ideally turn your phone off behind the wheel or pull over into a safe stopping area if you need to make a call.

“As a new driver you may
prefer to take out less
cover to secure a cheaper
premium particularly if
you drive a relatively
inexpensive vehicle.
Also, check you’re not
paying for policy options
you don’t need;
for instance, do you
really need courtesy
car cover?”

How new drivers can lower car
insurance premiums

New drivers should carefully assess the level of cover they require before they buy. There are three broad options available in the UK — third party only, which covers liability for injuries to others and damage to their property as well as liability while towing a caravan or trailer; third party, fire and theft which adds protection for your own car from fire damage, theft and attempted theft to third party cover; and comprehensive cover which, subject to policy exclusions, will cover damages to your own vehicle and typically includes features such as windscreen cover, medical expenses and cover for personal effects.

Generally, the more cover you take out the better. However, as a new driver you may prefer to take out less cover to secure a cheaper premium particularly if you drive a relatively inexpensive vehicle. Be careful too, to ensure you're not paying for policy options you don't need. For example do you need courtesy car cover if you have access to a second vehicle? Are you paying for business use of a vehicle even if you only use it for social purposes?

Additional tips to help lower your premiums

• Agree to a mileage limit: The fewer miles you drive the lower premiums should be so consider agreeing to a mileage cap.

• Boost security: Your insurer may offer a discount if you fit recommended alarms, tracking devices or immobilisers. You may also be able to lower premiums if you keep your car in a locked garage overnight reducing the risk of theft.

• Buy an appropriate car: Don't go overboard with your first car — vehicles with smaller engines are less likely to be driven at fast speeds while older cars usually cost less to repair/replace and therefore usually qualify for cheaper premiums.

• Don't modify: Modifications usually add to a vehicle's value making them more expensive to repair/replace so steer clear of modifications until you are an established driver.

• Increase your excess: Raising your voluntary excess will mean you pay more in the event of a claim but it could also lower your premiums.

• Pay annually: If you can afford to, consider paying your car insurance premiums upfront to avoid monthly interest charges.

• Pass Plus: The Pass Plus course offers tuition to new drivers in unfamiliar driving situations such as driving at night, in city centres, on country lanes, and in adverse weather conditions. Completing the course could earn discounts of as much as 35 per cent on your insurance and you may be able to gain financial assistance with the cost of the course from some local authorities.

Whatever your circumstances don't forget to shop around with a comparison website before you settle on the right car insurance policy for you as this will help you gain an overview of what's available on the market. Just remember to compare policy features as well as price.

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