With the number of car crashes rising each year – it is more important than ever to have good car insurance. Younger drivers are at a higher risk as they are inexperienced and have a history of driving more carelessly than older drivers.
Unfortunately, younger drivers will often have to pay more expensive car insurance but with the right research, you can find ways to bring down those costs. While car insurance isn’t compulsory in all countries – it is definitely recommended.
While it is expensive and the thought of having an additional expense isn’t appealing – it can be the peace of mind for you/your family/or your passengers. However, before you buy it, take the time to learn what affects the premium.
Your Driving History
If you have got any previous fines for speeding, texting, or drink driving then your premium will reflect that. Any previous accidents will exist on your record for several years and will affect your cost significantly over that time.
This is because an incident signal to the insurer that you’re not a careful driver – especially if there is more than one claim. You are marked down as having a higher likelihood of getting into a crash than someone with a clean record.
The Type Of Car
While you are likely to end up getting a small cheap car as your first one – this is not always the case. Some younger drivers must get insured on their parents/friend’s cars as they cannot afford their own.
If it has a larger engine or perhaps sports modifications than this will significantly increase the price. You will also face difficulties if the car doesn’t have airbags or central locking systems as this is considered more dangerous.
The Area You Live In
If you live in an area with a high crime rate, then your insurer will most likely add cost to your premium. This is due to a multitude of factors like the chances of your car being stolen or damaged.
Even if you live in a moderate risk area – you will find insurers want to know where you park the car. A car that stays in a garage and is only used for leisure is considerably lower risk than one that is on the street.
The Amount of Claims
While claims do save money in the short term, in the long term it can lose you money as the insurer will increase their premium to cover these potential claims. Of course, you have insurance in case there is an incident – but smaller issues might be better solved elsewhere.
Choose The Best Policy
There are three main types of insurance that you should be aware of: comprehensive car insurance, third party car insurance, and third-party fire and theft. You will get the best insurance depending on your circumstances and comprehensive is great for a young driver.
It is also great if your car is newer and more expensive as it is an investment into taking care of the car as well as yourself. It depends on your situation, so you need to carefully consider your options.
A good option for a young driver is asking to be insured on your parent’s policy. While you won’t get to build up your own no claims discount – you will find there is a reduced cost that will be worthwhile.