A New Driver’s Guide to Car Insurance

Rampant inflation has taken hold in the UK during Q1 2022, sending the cost of oil, petrol and diesel through the roof in the process.

As if this wasn’t challenging enough for motorists, the cost of car insurance has also increased by 2% (or £12) during the previous 12 months. Because of this, the average cost of comprehensive car insurance has now increased to £550, while this trend shows no sign of abating anytime soon.

Of course, insurance is even more expensive from the perspective of new drivers. But why is this the case, and how can you get the best possible deal in the current economic climate?

Why is Insurance More Expensive for New Drivers?

When you shop around for car insurance quotes, you’ll notice that premiums tend to be higher for new or inexperienced drivers.

This is why a 17-year-old who has just passed his test will have to pay a significant premium for car insurance when compared to a more experienced driver, and there’s a very simple reason for this.

More specifically, car insurance quotes are primarily determined by a measure of risk, with the statistics showing that young car drivers aged between 17 and 24 are overly represented in reported road accidents (particularly when compared with those aged 25 and above).

This is largely put down to inexperience and recklessness, while male drivers (75%) account for the overwhelming majority of young motorist fatalities on UK roads.

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How to Reduce the Cost of Car Insurance

Regardless of your age, it’s always good practice to ensure that you aim to reduce the cost of car insurance when comparing the market. So, here are some tips to help you achieve this objective:

• #1. Obtain Black Box Insurance: This is a must for new and young drivers, as black box insurance refers to bespoke and tailored premiums based on your behaviour. This requires the installation of a black box in your car, which subsequently collates information about your driving habits and rewards safer motorists with potentially lower premiums. Over time, your premiums can come down considerably, either on a month-to-month or annual basis.

• #2. Add an Experienced Driver to Your Policy: When you first obtain your licence, you may consider asking your parents to add you onto their existing insurance coverage. However, a far better strategy is to create a new insurance policy that also incorporates a more experienced driver (such as a parent). This reduces the risk in eyes of insurers and can lead to reduced annual premiums, particularly if the driver in question has a clean record with zero points.

• #3. Be Wary of Scammers: The car insurance market generates in excess of £14.2 billion in written premiums every year on average, but this has created an alluring sector for rogue operators and scammers. Such firms may act as fake or ‘ghost’ brokers, who deliberately target young drivers with unfeasibly cheap offers. Interestingly, overtly low prices are a key indicator of this type of scam, while communication solely through email or SMS should also raise suspicions.