How to get your first car insurance policy
Whatever age you are when you pass your driving test, it's a thrilling achievement. But the excitement can soon fade when you catch sight of your first motor insurance premium.New drivers of all ages typically pay more for policies than experienced motorists, simply because they are statistically more risky. The figures show that one in five people who pass their test are involved in a crash within 12 months.
Why is car insurance for new drivers so expensive?
If you are a new driver in your teens or early 20s, you could stump up more for the insurance than you did for your car. The reason is statistics: motorists aged between 17 and 25 are responsible for one third of all fatalities on UK roads. In other words, they are more likely to be involved in an accident and so more likely to claim on their insurance.Young men typically pay more than young women, because male drivers are responsible for more than 92% of UK driving convictions and 98% of all convictions for dangerous driving.
Car insurance for new women drivers
However, this will not be the case for much longer. The European Court of Justice has ruled that, as of 21 December 2012, insurers will no longer be allowed to take gender into account when setting premiums, whatever the statistics say.As a result, female car insurance premiums are expected to shoot up by an average of 30%. But for young female drivers aged between 17 and 25 the news is even worse - they could see premiums rise by a whopping 34% in many cases. So, for the first time, newly qualified female drivers will be hit just as hard as males.
Car insurance is compulsory
Of course insurance is not optional. You must have at least third party cover to drive legally on a UK road. And if you were thinking of trying to dodge the law, think again. The government has recently introduced Continuous Insurance Enforcement regulations to clamp down on uninsured driving. Anyone found guilty of driving without insurance risks a fine of up to £1000. They could also have their vehicle impounded.As with any kind of insurance, it is important to scour the market for the best policy at the cheapest price. MoneySupermarket's online service can help you compare new driver car insurance quotes from more than 100 insurance companies - and can lead to big savings.
You can also find insurers recommended by other moneysupermarket.com customers in our forums or by reading our car insurance reviews.
Find cheap car insurance for new drivers
There are a number of other steps that can be taken in order to ensure you are getting the cheapest car insurance for new drivers available:- Choose your cover with care- Third party insurance is the minimum legal requirement and is the most basic level of cover. Young drivers can sometimes save money on their premiums by choosing third party instead of comprehensive insurance - but not always. It's always worth finding out the cost of a comprehensive policy because you might be able to get more cover for the same or even a cheaper premium.
- Buy the right car- The rule of thumb for car insurance is the bigger the engine, the bigger the premium. And, as you might expect, the more expensive the vehicle, the more expensive the policy. All models are placed into one of 50 car insurance groups and a car in group one will be cheaper to insure than a car in group 50. If you have just passed your test and are thinking of buying a car, it's worth checking out its group rating at: www.thatcham.org
- Don't modify your vehicle- Insurers will usually increase the premium if you modify your car - even if you add an extra set of lights. Either resist the temptation, or think twice before buying a secondhand model that has been altered from the original specification.
- Increase the excess- Your policy will impose a compulsory “excess”, which is the amount you have to pay towards the cost of any claim. So, for example, if you have a £200 excess and make a successful claim for £500, the policy will pay £300. If you volunteer to increase the excess, the premium will reduce. But don't pick too high an excess or you may not be able to afford it if you have to make a claim. This is explained in more detail on our insurance excess page.
- Lose the extras- Policies can come with all sorts of add-ons such as breakdown cover or insurance for driving overseas. But the extras come at a price. You can save money if you buy a no-frills policy, or only include the extras that you really need.
- Add another driver- New drivers can often save money if they add an older more experienced driver to their policy, perhaps their mum or dad. Just don't name your mum as the main driver - the tactic is known as fronting and is illegal. Find out more information about this on our named driver car insurance page.
- Buy online- Some insurers offer a discount if you buy online rather than over the phone.
- Keep your car safe- You will find cheaper new driver car insurance quotes if you fit approved security devices such as an alarm, or an immobiliser. If you can park off-road or in a garage, the premium often falls further.
- Driver fewer miles- Insurers work on the basis that the more miles you drive, the more likely you are to be involved in an accident. So if you can keep your mileage down, you should also keep the premium down. Just remember to tell the insurer if you expect to breach your mileage limit otherwise you might invalidate the policy.
- Pay-as-you-go- You can often cut the cost of insurance with a pay as you go car insurance policy. A “black box” will then be fitted to your car to monitor your motoring and you will typically pay a lower premium if you driver fewer miles and avoid hazardous conditions, such as night driving and rush hour traffic.
- Don't claim- If you don't make a claim on your policy, you will be rewarded with a discount on your premium. The discounts can add up, often cutting the cost of cover by up to 70% after five consecutive claim-free years.
