Buying your first car is an important milestone. The independence of your own wheelset is a great privilege.
Why is car insurance so expensive for new drivers?
In the search for a cheap insurance new drivers usually have the hardest time. Inexperienced motorists are considered a major risk for insurers, which is reflected in the price of car insurance for new drivers.
However, there are a number of ways in which you can reduce the cost of coverage by taking the following steps to reduce costs.
The average cost of comprehensive car insurance based on age information
The MoneySuperMarket data shows the average total premium for young drivers between 18 and 24 years old. As of March 2018
Consider a black box insurance
Telematics insurance may be the best car insurance for new drivers, as it is often the cheapest way to get covered. Insurers believe that black box insurance could save a new driver by up to 25% – and our latest data shows that 17 to 24-year-old drivers could save an average of £ 363.25 on this type of coverage. It is likely that telematics could be an option for car insurance for new drivers and is worth considering.
Telematics is a relatively new form of insurance in which a vehicle is equipped with a black box data recorder that is about the size of a smartphone. The device records the mileage – taking into account the compliance with the speed limits as well as the monitoring of cornering and braking behavior.
This helps the insurer build up a profile of the policyholder and offer them bonuses that take into account their overall performance and the statistical probability of involvement in accidents. Installing a black box could be the cheapest route for new drivers.
A telematics policy is on average £ 363.25 cheaper for 17-24-year-old drivers
The MoneySuperMarket data shows the average savings for drivers aged 17 to 24 when completing a telematics policy between January and March 2018.
Car insurance is mandatory
Car insurance is compulsory and you just have to be covered. The government has gone ahead with the introduction of Continuous Insurance Enforcement (CIE) to tackle a large number of uninsured drivers who have to cover every car, whether they’re on the move or off the road. The only exception is when the vehicle is declared on the road with a legal off-road (SORN) notification.
Those who risk driving without car insurance not only commits an offense but can also expect high penalties. This may result in a fine, prosecution or vehicle being confiscated and destroyed.
Average car insurance costs for new drivers
The MoneySuperMarket data shows average premiums for drivers aged 17-24 between January and March 2018.
Find the cheapest insurance for new drivers
Although car insurance for new drivers is likely to reduce your finances, giving up money is just one option. However, the good news is that there are some tricks to help you find the cheapest insurance for new drivers:
1. Rummage through:
Never simply accept the first new offers you get for car insurance. If you look around and compare prices, you can weigh your options and get the most appropriate and cheap car insurance deals.
Reduce Mileage: Insurers will take into account, among other things, the number of miles you estimate during the year. The less you travel, the lower your risk. If you specify the estimated mileage, you will avoid overpaying for miles you are not using. And if you can reduce this by using public transportation or engaging in a vehicle share, you can save money on your premium.
Take part in an advanced driving course like Pass Plus: In addition to improving your driving style, insurers will be looking forward to this extra experience, which can lead to lower premiums for new car insurance.
Opt for a higher deductible: If you opt for a higher deductible, you can lower your premium. Just make sure that you can actually afford it if you have to file an application.
2. Buy online:
Discounts may be incurred when buying your car insurance.
Keep Your Car Safe: You will often get cheaper deals on new car insurance if the insurer believes the vehicle is less likely to be stolen or vandalized. You can achieve this by inserting the vehicle at night
At the same time, as a car owner, this means that you have to make an important decision: what cover do you need in your first auto insurance?
It’s tempting to ask your agent for the lowest cost policy. After all, you have many other expenses that you now have to bear if you are a car owner. However, if you fully understand what each part of your car policy covers, you can decide that cheaper is not necessarily better. Think about it: If your car was involved in an accident or you seriously injured someone, a few dollars more coverage per month could be well-spent money.
Here are some of the most common covers that you should consider for your automatic policy.
There are two types of liability insurance. Both are required by law in most states.
3. Keep Your Car Safe:
You will often get cheaper deals on new car insurance if the insurer believes the vehicle is less likely to be stolen or vandalized. You can achieve this by simply parking the vehicle in a locked garage at night or at least off the road in a secure driveway. If this is not possible, you can add safety-enhancing equipment such as immobilizers, tracking devices, and alarms.
4. Named Drivers:
If you add a named driver to your policy who is older and/or more experienced, car insurance is likely to offer more favorable premiums, as they assume that responsibility for driving is shared and the riskier motorist less time spend at the wheel. This often leads to cheaper premiums. Further information can be found in the driver’s name car driver’s guide. However, make sure that you do not violate the law by “fronting” your insurance policy
Choose insurance that covers the following
Liability for injuries:
If someone has been injured because of a car accident, this insurance cover can help pay attorneys’ fees, medical bills, and lost wages. This coverage often includes two separate limits: one that applies to each casualty (for example, $ 50,000) and a second one for each casualty (for example, $ 100,000).
If you damage the property of another person such as a fence or garage door with your vehicle, this cover may protect you. Cover for property damage can help the other party reimburse their losses so you do not have to pay them out-of-pocket.
If you drive with high-quality coverage, drive with calm. Allstate Auto Insurance can help you wherever you go.
Personal protection (PIP):
If you are injured in a car accident, this coverage may help you to pay your health insurance deductible (if you have one) and medical costs that exceed your health insurance limit. This coverage can also help pay for lost wages and “service losses,” such as picking up your children from school while you recover. Worst case: PIP can help cover your funeral expenses. Note that PIP is not available in all states
As with PIP, this coverage can help pay for your medical bills related to a car accident. However, this coverage also extends to your occupants and a family member who drove the vehicle at the time of the accident. If you or a family member is injured in another car or as a pedestrian, this coverage can help pay for the medical expenses.
This cover can protect you if hit by a driver who has no car insurance or whose insurance limits are too low to cover the full cost of the accident. It may help to pay for your medical bills and, depending on the insurance laws of your state, for damage to your vehicle.
If you need to repair or replace your vehicle after a collision with another car or object, this coverage may cover the costs.
This coverage can help pay for damage to your vehicle that is not related to a car accident. Examples: Theft, damage by animals, fire or falling objects.
Learn more about comprehensive coverage.
Guaranteed asset protection (GAP)
If your vehicle has been involved in an accident or stolen, you will normally pay fair market value for your vehicle. However, if you owe more to a financial institution than the car is worth, CAP coverage can help you reimburse the cost differences.