Driving is expensive. It’s true in most countries, especially the UK.
In fact, at the end of 2020, the Association of British Insurers reported that the average cost of comprehensive car insurance coverage in the UK is £468. It might not seem much for some people; it’s also the lowest in four years, but if you’re a young driver, expect to pay almost double that amount. That’s because age is the primary factor that insurance companies consider when giving insurance quotes.
The Average Cost of Car Insurance for Young Drivers
So how much money do young drivers shell out for car insurance coverage? According to Statista, those in their 20’s will pay the highest. Car insurance for this age range can cost an average of £851 per year.
Why is Car Insurance Super Expensive for Young Drivers?
Figures from the Department for Transport show that 7% of all license holders in the UK are young drivers. These are individuals from ages 17 to 24.
The reason why drivers in this age range pay higher insurance premiums is their heightened chance of being involved in an accident. In fact, one study concluded that motorists aged 19 and below who have just obtained their license are 33% more likely to be in a collision compared to drivers in their 40s.
Young drivers’ higher chance of being involved in a crash could be due to many factors – the two most common reasons being their general lack of experience and risky driving behaviour.
How Can Young Drivers Keep Their Insurance Premium Low?
While it’s true that young drivers in the UK are often stung by expensive insurance premiums, it doesn’t mean that there’s nothing you can do to minimise costs. Follow these tips to reduce your payment on car insurance:
1. Choose the Insurance Coverage you Actually Need and Shop Around
There are many options when it comes to car insurance in the UK. It’s no wonder why many drivers get overwhelmed when deciding which cover they want. It’s especially true for young drivers who are picking one for the first time.
Should you go for third-party fire-and-theft or a comprehensive insurance policy? What’s most important here is choosing what you really need. Avoid getting something that’s more than necessary. Of course, don’t forget to shop around for the best deal once you already have specific coverage in mind.
The motor insurance market in the UK is very competitive, so you mustn’t settle for the first quote you’ll receive. The best thing to do is weigh up the pros and cons of each premium using price comparison sites.
2. Improve Security in Your Car
Another effective way for young drivers in the UK to reduce auto insurance premiums is by installing extra security features to their vehicles.
Is your car alarm working? Do you have an engine immobiliser? How about a car tracking system? These are only some of the many security measures you can take. These features deter carjackers and thieves. Of course, the safer your car, the lesser the amount of your insurance premium.
Besides lower payments for insurance coverage, keeping your car secure also brings you peace of mind.
3. Complete Accredited Driving Courses
Some insurance companies in the UK reduce premiums for young drivers who’ve taken training on safe driving.
It’s also essential to note that keeping safe on the road allows car owners to keep costs low in future. Even penalty points on a license due to speeding can impact your premium negatively. It’s also true for those who drive under the influence. These should be enough reasons to enrol yourself in a driving course and start driving safely.
4. Add Another Driver (someone more experienced)
Insurance premiums are much higher for less experienced drivers such as individuals in their 20s. The figure, though, can be reduced by adding a driver with more experience to an insurance policy.
Do you want to convince your insurance company that you’ll be safe when hitting the road? Do it by adding your dad, mum or another family member who’s been driving for years to your policy.
5. Avoid Modifications/Alterations as Much as Possible
Many people don’t realise that installing spoilers, aftermarket exhaust systems, as well as adding or replacing lights lead to a rise in insurance costs.
There are, however, changes that may reduce insurance premiums, such as engine downsizing and installing high-performance brakes. Young drivers who really like to put a personal stamp on their cars should focus on these upgrades instead.
After the expense of driving lessons and learning to drive you may hope to give your bank account a break. Unfortunately, car insurance is a legal requirement for car owners in the UK and it’s also very expensive for young drivers. Happily, there are a number of ways to keep insurance premium payments down, such as the ones mentioned and discussed above. Hopefully, what you’ve learned here can help you save a lot of money on your first car insurance premium.