Which Car Insurance Policy is Right for You?

Insuring a teenage learner or newly qualified driver can be a costly experience. Younger drivers almost certainly face higher car insurance premiums than older drivers because insurers consider them as ‘high risk’. They have less experience behind the wheel and statistically are more likely to be involved in an accident or die as a result of an accident. One in five drivers has an accident in their first year on the road.

How to be a young driver without breaking the bank

• Shop Around: The golden rule is to be clear about what kind of cover you need and get several different quotes, so that you can compare price and, more importantly, value for money. Some insurers are reluctant to insure young 'high risk' drivers and will quote extortionate premiums; others will not quote at all. Use the Tiscali Insurancewide MotorWizard™ to find insurers who are most suitable for young drivers’ insurance needs.
• Buy online: Many companies offer discounts when you buy car insurance online. If you already have claims and convictions you can still research quotes on the internet but you may not be able to buy without a telephone call.
• Start building up a No Claims Bonus: Build up 'no claim' years and premiums will fall. No claims discounts start at around 30%. A no claims bonus will give you access to a much wider range of insurers. To build up a 'no claims' record you have to be the policy holder rather than a named driver.
• Drive carefully. Sounds like obvious advice, but many people still ignore it and then resent higher premiums: don't treat the road like a race track, avoid speeding convictions and you are more likely to avoid increased premiums.
• Pass Plus/Advanced Institute of Motoring Course: Some insurers will offer young drivers a discount if they have completed additional driving courses. These courses involve further lessons on how to observe and anticipate potential hazards and how to drive in adverse weather conditions.
• Buy a 'sensible' car: The cost of the car model, the engine size, repair costs, safety track record and likely attractiveness to thieves will all affect the insurance premium. Before you buy, always compare insurance for each different model you are considering. You may find that insurance is almost as expensive as the car. Have a look at which insurance groups many popular models are in.
• Low mileage discounts: Always inform your insurer if your annual mileage is low, as you may be entitled to a discount. Never deliberately underestimate your mileage as this could cause problems when you make a claim.
• Security: Keep your car off the road or in a locked garage and considering installing a Thatcham approved alarm insurers – this could reduce your premium by up to 10%.
• Don’t modify the car: Modifying your car will affect your car insurance premium. Car manufacturers work closely with insurers so that a particular model of car can be insured to a standard. If you modify the car, by souping up the engine, for example, then the factors on which your premium has been based will have changed. Body kits, alloy wheels, suspension upgrades, even having the engine management system chipped are all likely to be classed as modifications.
• Add a mature driver: Insurers often offer a reduced rate if you include a mature, experienced driver on your policy.
• Higher voluntary excess: You could opt to increase the voluntary excess. However, as a younger driver you are likely already have a reasonably high excess. This is the amount you will have to pay if you make a claim so make sure you would be able to make this excess payment. If you are confident in your driving ability and are unlikely to claim, then this is a good way to decrease premiums.
• Third Party Fire & Theft: If you drive a low-value car, you could save a third off your premium by opting for third party insurance only rather then fully comprehensive. Finally, never lie: You enter into a contract with insurers in 'utmost good faith'. If you lie, an insurer can refuse to pay out on the basis that your claim is invalid. You must keep the insurer up to date with any information that may change the premium you pay. For example, if you change address, job, and marital status then you are obliged to let them know. Changes could make your car more/less liable to damage, theft or involvement in an accident. If you are caught speeding and points are applied to your licence you must inform the insurer. Any modifications to the vehicle must be reported to the insurer.