Teenagers eager to get behind the wheel of a car, often find it difficult to get an affordable car insurance policy. So how can youngsters drive premiums down?
Under the terms of the Road Traffic Act, all drivers, including learners, are required by law to be insured against their liability for injuries to others and for damage to their property. However, finding cheap car insurance as a learner driver can be difficult.
Why are insurance premiums for learners so high?
The AA British Insurance Premium Index of October 2009, revealed the extent to which young drivers have been hit by high car insurance premiums. According to its findings, prices for third party, fire and theft schemes – which are typically bought by new drivers – averaged £1,059. That’s an increase of 9.3 per cent over the preceding three months.
There are many reasons why youngsters are hit so hard, with the Motor Insurers Bureau reporting that youngsters are four times as likely to be involved in an accident as drivers aged 35; while Department of Transport figures released in 2008 showed that accidents and deaths among young drivers are declining at a slower rate than among any other age group.
In 2008, several insurers, including AXA, More Than, Saga, Swiftcover and Esure, stopped offering quotes to 17-year-olds altogether because of the risk they are deemed to pose.
So what options are available to learner drivers?
When shopping for car insurance as a learner driver, the first step is to think about how much cover you need.
If you’re driving in an instructor’s car only, then you won’t need car insurance until you have passed your driving test and are ready to start driving. This is because instructors are obliged to be insured for other drivers – and so effectively your car insurance is already taken care of. However, if you are driving a parent’s or other family member’s car, you will need to be added to their car insurance as a named driver; and if you’re driving your own vehicle then you will need a car insurance policy in your own name.
There are three levels of insurance available – these are:
-Third party only: The most basic form of car insurance covers injuries to others, damage to their property and liability while towing a caravan or trailer.
-Third party, fire and theft cover: The same as third party cover but with the addition of protection for your own vehicle from theft, attempted theft or fire damage.
-Comprehensive cover: Covers loss or damage to your own vehicle on top of third party, fire and theft cover. There are a range of policy options available with comprehensive cover that differ from insurer to insurer but may include personal injury cover, windscreen cover, accidental damage and more.
Clearly, the more cover you take out, the better protected you will be in the event of an accident. However, because of the high prices associated with comprehensive cover many learners prefer to take out third party or third party, fire and theft protection. These policies can offer good value if you drive an inexpensive vehicle.
What about specialist learner driver car insurance?
There are several insurers in the UK that offer ‘learner driver’ policies. Generally these are short-term policies that will cover you during the learning period but don’t commit you to a long-term contract meaning you can shop around again when you’ve passed your test.
These policies have their advantages and are well-suited to those who won’t have access to a vehicle immediately after passing their test. However, these policies are often expensive and you should not assume that you will be able to find cheaper cover once you have completed your practical driving test – many insurers raise premiums because you are no longer obliged to be supervised while driving. So it’s well worth shopping around with a comparison website to compare as many policies as possible before making a commitment.
How can learners save money on car insurance?
In addition to shopping around, learners can keep car insurance premiums in check by:
-Driving a car with a small engine: Choose a car with an engine size less than 1200cc; with a standard specification; and with no modifications.
-Increasing security: Adding security devices such as car alarms and immobilisers could earn insurer discounts.
-Completing the Pass Plus course: Once you have passed your driving test consider taking the Pass Plus course which could cut premiums by as much as 35 per cent with some insurers.
-Adding a parent: If you have your own car, consider adding a parent as a named driver if they have a clean driving record. Don’t ask a parent to front a policy for you however, as this is illegal.
- Building up a no-claims discount: Staying accident free on the road is the best way to lower premiums – and several insurers even offer rapid bonus schemes to new drivers allowing them to earn a full year’s discount in less than 12 months.
