DO ensure you always minimise your risk
Whether or not you're a young driver, insurance premiums (the name of the payments made to insurance companies) depend on three things:
By reducing an insurer's perception of your risk, you can reduce the price you'll pay.
Car insurance rates are set by actuaries, whose job is to calculate risk. Make sure you're as little of a risk as possible, and you can make big savings by showing an insurer that you're not the typical high-risk young driver. Each insurer's price depends on two things. First, the underwriters' assessment of your particular risk focus; and then the pricing model that dictates the type of customers the insurer wants to attract.- Do fit a security device
Any extra security will help. Fitting an alarm or immobiliser (especially one approved by Thatcham) can reduce the bill substantially.
- Do park and drive carefully
Theft and accidental damage add a wedge to insurance costs. If you leave your car in a garage or driveway it's a big deterrent to theft and means accidental damage is less likely, resulting in a 3% - 7% drop in insurance costs.
Plus the more points on your licence, the higher the cost. While speeding points remain on your licence for four years, insurers usually check for convictions during the last five before they are removed from your record.
One speeding conviction may only affect the price of cover by around 5% - but any more'll bump up the price, with two offences costing around 20% more.
Being caught with a mobile phone is more serious and can double your quote. It can also give you three instant points on your licence, which stay on for four years. Approved hands-free kits are fine if used properly.
- Do reduce your mileage
The less you drive, the cheaper your insurance will be. Where possible, try to reduce your mileage. This may sound trite, but actually the real key is incorporating the extra insurance cost when you make long journeys, not just the cost of petrol compared to taking the bus or train (also read Cheap Trains article).
Anecdotally, though many simply get a quote for 10,000 miles per year, MoneySavers have reported that 5,000 is the best figure to use - though we haven't tested this. If you drive your vehicle on business, always declare this rather than just include the business miles as personal, or the policy may be void.
- Do look at additional driving courses
PassPlus:This Driving Standards Agency course is aimed at helping new drivers (within 12 months of passing their test) become more confident on the road. There are six modules: town driving, all-weather driving, driving out of town, night driving, driving on dual carriageways and driving on motorways.
The cost of the course is about £140 but does vary depending on where you live and the instructor or driving school you choose. Yet some local councils offer discounts of up to 40%, usually for those under 25, and in Wales it only costs £20 (check if your council is taking part).
Once you have the certificate some insurers discount the price of your insurance, but there are not many that do (see a list). Sadly it's become less and less recognised in the last few years so the discounts aren't generally that high, and there's a high chance you could get cheaper cover elsewhere.
Drive iQ: This course is provided by the AA and selected independent driving schools - and included within the cost of your lessons - which combines online learning with practical lessons for learner drivers.
It covers attitudes and behaviour to driving, rather than just car control skills, and is based around five units which also include motorway and night driving. It says once you’ve passed, you’re eligible for exclusive insurance deals. But check quotes with Drive iQ before you sign up to see how it compares.
For an optional £50 fee, you will receive a BTEC qualification (equivalent in level to a GCSE) in ‘Driving Science’ as well as your licence if you pass.
