A guide to choosing the best car insurance for young drivers

Getting a driver licence can be a thrilling milestone, symbolising newfound freedom and independence. Along with the excitement comes the responsibility of understanding and getting the right level of car insurance for new drivers. Here are a few considerations for young drivers to keep in mind when it comes to their first car insurance.

Premiums can to be higher on car insurance for young drivers

Young drivers, especially those under 25, can face higher car insurance premiums due to statistical evidence showing they are more likely to be involved in accidents. The lack of driving experience and a driving infringement history also add to the level of risk that insurers consider.

Different factors impact car insurance premiums for young drivers

Factors including the type of vehicle you drive, driving record, and where you live can impact the cost of your insurance premium. For example, certain vehicles may be deemed safer than others and might reduce the cost of your premium. Also, deciding on optional add-ons and comprehensive coverage will incur a higher premium, however you’ll also get additional and often helpful benefits.

How to get cheaper car insurance as a young driver

Unfortunately, young drivers can be stuck with higher car insurance premiums due to their lack of experience on the roads. Being aware of the different offers and options available to young drivers can help you make an informed decision when it comes to buying car insurance. Here are a few ways young drivers may be able to reduce their car insurance premium:

Choosing the right vehicle

The type of vehicle a young driver chooses can impact their car insurance costs. For example, driving a standard sedan with a high safety rating generally results in lower premiums due to the car’s protective features and lower replacement costs. Compare this to an imported, high-performance sports car which may appear more high-risk to insurers due to its increased speed capabilities and the potential for higher replacement costs for parts that may need to be sourced from overseas. Selecting an easy-to-service vehicle with a strong safety record can lead to substantial savings on car insurance for young drivers.

Exploring bundling options

Many companies offer multi-policy discounts for bundling car insurance with other policies. These might include home and/or contents insurance. These discounts can lead to savings for young drivers by reducing overall premium costs. By consolidating multiple policies with a single insurer, you could benefit from lower costs as well as streamlined billing and a single customer service contact point.

Higher excess for lower premiums

Opting for a higher excess can lower your monthly and annual insurance premiums. This can pose an attractive option for those looking to save on regular expenses. However, it’s important to weigh these savings against the potential financial consequences. When you increase your excess, you’re taking on more risk. In the event of an accident or claim, you’ll be paying more out of pocket with a higher excess. Consider your financial situation and ability to cover this potentially higher cost.

Limiting unnecessary add-ons

Certain optional benefits or add-ons may not be essential for all young drivers. Features like hire car could potentially be irrelevant if the young driver has their car for recreation rather than needing to get around. Evaluating which options are truly necessary can help young drivers avoid unnecessary expenses.

How to choose the best car insurance for young drivers

Shopping around and comparing car insurance quotes from different car insurance companies is crucial for finding the best rates.

Choosing an insurer isn't always about finding the lowest price. Taking into account your lifestyle, the type of cover you need, and other benefits offered by an insurer can help inform your decision. You may find that the lowest priced policy, does not have other benefits you’d find valuable.

Being a young driver comes with its challenges, including figuring out what kind of car insurance teenagers and those under 25 need. By understanding how insurance premiums are calculated and exploring ways to save, young drivers can make informed decisions that not only protect them on the road but also save them money in the long run.