Top tips for reducing car insurance for young people
Young drivers have faced significant challenges when it comes to motor insurance in recent years. But experts at www.Coverinaclick.ie say that while their first year on the road can be expensive, an analysis of premiums between year 1 and year 2 demonstrate a sharp fall in costs.
The online brokers say they want to let young motorists know that more affordable premiums are in sight and that if they can see out the first year and take the necessary steps to help themselves, young drivers could see their premiums slashed by 76% or more.
Figures from www.coverinaclick.ie say reveal that a 21-year-old provisional driver with no experience could pay as much as €3,936 in the first year, but with just one-year driving experience, no claims and a full licence behind them, they can now secure a premium of €932 by switching him or her to one of the new specialist Lloyds underwriters.
Jonathan Hehir, Managing Director of Coverinaclick.ie is advising those who are about to embark on their motoring journey to be prudent in their approach and to do what they can themselves to cut costs,
“While insurers are the ones who set the prices, young drivers still have some control over their fate in terms of the premiums they pay – particularly once they have gained some driving experience. We ran the numbers and if these drivers can reach and complete 3 driving “milestones” i.e. get 12 professional lessons, attain their full licence and earn a 1 year no claims Bonus, then they will see a huge reduction in what they are charged for motor insurance, as we can switch them to one of our Lloyds underwriters. Even those who only manage 2 out of 3 and don’t get their test the first year will still see a marked decrease in premiums”.
Coverinaclick.ie say that young drivers face greater challenges than other drivers when securing the best value on the market, which is why 9 times out of 10, they would be better off using a broker with access to the often much cheaper Lloyds market for them, rather than just being limited to direct insurers based here.
Mr Hehir explained: “There is limited competition in the first-time market - a first-time driver might only have 5 insurers looking to quote, whereas a driver with a full no claims bonus could have 15+ insurers looking to quote for their business. Basically, these drivers need to know where to look as it’s a bit of a niche market, what’s more not all brokers will specialise in this category – you need to find one who has rate agreements in place with specialist insurers who will do young driver a decent ‘deals’.”
Top tips for young and/or new drivers
The Coverinaclick.ie Top Tips for a better rate include.
1. Get lessons - discounts will be offered by certain insurers for drivers who have completed 12 lessons from a qualified driver instructor.
2. Get your full licence.
3. If possible plan ahead - try get experience by being added to a parent’s policy for a period to help get the driving test. While traditionally most insurers will insist on a full year, some providers offer discounts to young drivers who have 6 months’ experience on their parent’s policy.
4. Look at the model and engine size of the car you are going to buy. Don’t be afraid to ask for different quotes for various cars.
5. Check the differences between third party fire and theft and comprehensive, according to the value of the vehicle.
6. If you want to teach your teenager to drive, cost out the various alternatives – adding them to your or your spouse’s cover or arranging separate cover for them – don’t assume that one will be cheaper than the other.
7. Remember that some insurance companies specialising in insuring young drivers are only available through certain brokers.