Being a young driver is not an easy position to be in if you don't have a lot of capital to run a vehicle. After all, there are a lot of costs to contend with: the price of the car itself, MOT costs, road tax, and, of course, petrol prices. However, one of the biggest burdens - if not the largest financial outgoing of them all - is insurance. This was highlighted recently when the Confused.com/Tower Watson car insurance price index (May 2012) revealed the true costs facing young drivers that adhere to the law.
Motorists between the ages of 17 and 20 are now expected to pay an average of just under £2,500 a year for a car insurance policy, effectively meaning that people in this demographic are paying no less than 18 per cent of their full-time salary to pay for this cover. If you're a young man, it's even worse - male drivers are expected to pay an average of £3,635 a year. This may improve when equality legislation forces men and women to pay the same amount, though many are unsurprisingly cynical about this possibility.
However, with a few tips, you can get yourself the best deal - all it takes is for you to consider a few things when buying insurance:
Look online and deal with companies directly
Going online for insurance can give you a lot of positive results, though buying directly from a provider can often guarantee a better deal. This is because price comparison sites charge a small cut for acting on behalf of companies to get traffic to their site. What's more, there are several organisations such as Can Can Cover that specialisein providing cover for students, young people and graduates, though don't often advertise through the aforementioned sites.
Remember the important prerequisites
A lot of things will affect a car insurance premium, and you must note these down before going online. These obviously include the age of yourself and car, though factors such as where you live, where you drive and the number of miles you expect to cover in a year will also be factored into an insurance deal. The biggest cost-reducing factor is a no-claims bonus, though as a young driver, this may not even apply to you.
Buy insurance upfront for a full year
This may not be the most appealing (or possible) option for younger drivers, though it really will pay off in the long term, buying on a yearly basis could save you as much as one or two months' worth of insurance costs.
Get additional accreditation for you and the car
A professional inspection of your car could convince a potential insurer that the car is more worth their business than they may originally assume, though it may be even more effective to get extra driving training, such as the accreditation provided by Pass Plus, these are also known to lower premiums with insurance companies.
