A parent who is able to afford a vehicle for their teenager will be acutely aware of how expensive it can be to insure that vehicle. Even if the liability limit is met, they may still be able to pass their driving test. Many young drivers are shocked to learn that their insurance quotes for one year, whether they get them through a broker or over the phone, are more expensive than the vehicle they want to insure. This situation has obvious costs for parents, but before we discuss how to reduce premiums for young drivers, let’s briefly examine the reasons for this oversupply of motor insurance premiums.
Insurance companies are basically businesses. Every business’s bottom line is to make money. It can pay dividends to shareholders or invest the profit in other money-making ventures. Insurers are cautious about setting premiums that could compromise their profits by increasing the amount they have to pay for a claim. Insurance companies consider the probability of a certain driving group being involved in an accident. They also consider the extent of damage that could result and the potential size of any payouts they might have to pay.
The statistics are quite alarming. First, one in five drivers are involved in a motor vehicle accident within the first year of their driving. The vast majority of these drivers are young. A male driver younger than twenty-one years old is more likely to be in an accident than a man older than thirty-five. Thirdly, motor accidents involving young drivers are more common after dark falls. Only one in eight drivers in Britain are under 25 years old, but one in four car accident victims are from this age group. A significant portion of the motor vehicle passengers who are likely to suffer life-altering or fatal injuries in an accident will be younger drivers. These statistics should be accompanied by a rider. Although they may refer to young drivers in general, they actually reflect the fact that young female drivers have a significantly lower chance of being involved in a motor vehicle accident than their male counterparts. And, if they do, the potential consequences will be much less severe. The cost of claims that arise from accidents caused “boy racers”, which are often settled, is spread across the driving community. This means that all drivers are paying higher premiums.
The insurance companies are charging young drivers a high premium. What can we do to lower the cost of insuring them? The Driving Standard Agency offers the Pass Plus course, which is the best way to reduce young drivers’ premiums and decrease the chance of him being in an accident. The Driving Standard Agency offers a Pass Plus course that gives young drivers additional driving experience. This includes driving around town in all weather conditions, nighttime, on dual carriageways, and on motorways. The initial premium can be reduced dramatically by completing the course. You can also reduce the initial premium by keeping the car locked up or off-road at night.
All of the above will reduce your initial insurance premium. The young driver will manage the insurance premium. He will be eligible for a no-claims discount on his second year’s premiums if he passes the first year without any claims. This will result in a reduction of a percentage, and he will save a lot of money if he isn’t injured again until the full no claims discount.
It is obvious that premiums for young drivers are going to remain high unless driving habits change. This article will explain why and how you can get the lowest premiums. After all this is done, you can compare insurance prices to maximize your savings.
