It can be incredibly expensive to get car insurance if you are a new driver. This is because you are more likely to have an accident if you are an inexperienced driver and insurance companies feel they are taking a bigger risk by insuring you because of this. However, there are ways of getting your car insurance premium down as a new driver, so don’t despair – follow these tips for cheaper car insurance.
Shop Around If you want to get the cheapest car insurance, you will need to shop around. You can do this easily online with sites like Quotezone, who offer up to the minute insurance quotes from the leading providers to make sure that you get the best deal possible. This will take the hassle out of trying to get lots of different quotes from different providers yourself as you will find the cheapest car insurance policies all on one website.
It can be cheaper to pay for the full year upfront when you’re taking out car insurance, especially if you’re a young driver paying a high premium. The reason for that is that a monthly payment plan is essentially a loan against your full premium that you pay off each month, which means the amount of interest you pay on that monthly payment plan will more when your premium is higher.
Take Out Telematics Insurance
Telematics or black box insurance calculates your premium based on the way you drive. The insurer will usually install a small black box into your car, although some of them now use a smart phone app instead. The device the insurer uses will send information back to them such as how you brake, corner, and steer your car. It will also provide information about your speed, mileage, and the time of day you are likely to drive.
Some insurers will return a portion of your premium at renewal if you have handled your car well. Others will offer a reward or bonus based on low mileage. However, there could also be penalties if you drive badly or often break the speed limit. Bad drivers may not be offered insurance for a second year.
This will not necessarily save you money at the outset but as long as you drive carefully and safely, you may get your money back and your insurance could be reduced considerably in the second year.
Agree to a Higher Excess
An excess is the money you agree to pay before the insurer will pay out. For example, if you have an excess of £250 and need to make a claim, then you will pay the first £250 yourself and the insurance company will cover anything over and above this. A lot of insurers will offer you a lower premium if you agree to a higher excess if you make a claim. If you are a careful driver, it is worth increasing the
excess and paying a lower premium as you will only pay this if you need to make a claim. However, if you do damage the car, it could get very expensive for you, so weigh up the options first.
Add an Older Named Driver to Your Policy
This could bring your insurance down as the insurer will see that the car is being driven by an older, more experienced driver for some of the time and could offer you a better deal because of it. However, it is important that the additional driver does drive the car some of the time because it could invalidate your insurance claim later on if they don’t. Some insurance companies don’t include commuting or business cover for named drivers, so check the small print.
Choose a Cheaper Car
You may want to spend a lot of money on your first car, but this will increase your insurance premium. The cheaper your car, the cheaper it will be to insure as the insurer won’t need to pay out as much money if you make a claim. Opt for a car with a small engine as this also affects your premium. Ideally, you should look for a car with an engine size of under 1.2l. This will be slower than a larger engine so the insurer will not be taking as big a risk. This will lower your premium. Shop around for cars with low insurance premiums. You can always buy a more expensive, powerful car once you have built up your no claims.
Secure Your Car
Car security matters a lot to insurers as they want a low risk of the car getting stolen. Choosing a car with an alarm or immobiliser to bring down the premium or you can buy these separately. Where you park your car overnight can also have a bearing on your premium. The insurance will be cheaper if you are able to park your car in a garage or driveway rather than leaving it on the street.
Follow this advice to get the best car insurance deal.