Six easy ways to reduce car insurance for young drivers
The cost of car insurance for drivers under the age of 25 is enough to make your wallet shed a tear. In 2018 the average premium for young drivers was as much as 1500 Euros.
This is because statistics tell insurers that young drivers are more at risk and are likely to make larger claims.
However, by following our guide of six easy ways to reduce your car insurance, you may find that it’s not such a hassle after all.
Get Yourself a Cheap Car to Insure
Everyone wants a flashy car, however, for young drivers this can cause your insurance premiums to fly through the roof. Cars are classified into insurance groups, numbered from 1-50 which are based on their engine size and any modifications. Cars such as SEAT Mii, Ford KA, and Fiat 500s are three of the cheapest cars to insure and are classified into group 1. Here are 6 easy tips to find the best cars for young driver.
Third Party Insurance Doesn’t Equal Cheaper Insurance
It is understandable that many young drivers may assume that out of the three options for car insurance; third party, fire, and theft,’ and ‘fully comprehensive,’ that the third party option is the cheapest, as it provides the least coverage.
However, the Association of Ireland Insurance claims that third party, fire, and theft is often more expensive than fully comprehensive cover, as more young people opt for this type of insurance. As a result, insurers now associate claims for third party insurance with high-risk drivers.
What is the black box? Do they actually work?
Installing a black box (also known as telematics) in your car is a great way to cut down cost for first-time drivers. They monitor your driving behavior – including speed. Which means the insurer will offer you a premium based on your own driving habits rather than basing it on extensive statistical evidence.
Due to a rise in the black box based insurance policies, Consumer Intelligence has found that car insurance premiums for under 25’s decreased by 14% in 2018, which could save young drivers hundreds of Euros.
Add a Named Driver to Your Insurance
Adding a named driver such as an older, experienced family member as additional drivers can be a great way to reduce the costs. The AA Insurance found that adding a 40-year-old family member as an ‘occasional user’ to an 18-year-old’s insurance policy, cut the premium by around a thousand Euros. This is because the car would be officially shared between two people and the individual diving time is lessened, which reduces the perceived risk and ultimately the cost.
Increase Your Excess
If you choose a higher excess, the insurance company will reduce your premium. You can significantly reduce the cost of your insurance by doing this, although you must make sure that you can pay this extra excess on top of the obligatory excess if you find yourself needing to make a claim.
We know that finding cheap car insurance for someone under the age of 25 can be a headache, but just because you’re a young driver doesn’t mean that you have to settle for these soaring prices. Follow the steps above, and you will find yourself saving a few extra pennies.