Finally getting on the road is an important landmark for young people but the shock of having to get vehicle insurance can often take the shine off celebrations. When you are looking at getting insurance for young drivers, there are a few things that you can do to help keep costs to a minimum, without putting you or others at risk.
Insurance is all about risk; the higher risk the insurer thinks you are, the higher your premium. Take a look at our top tips for reducing your risk rating.
Don’t automatically opt for third party
It is natural to assume that third party insurance, which covers any damage or injury to other people’s property or possessions, but not your own, will be cheaper. However, this is not always the case. In some cases, choosing third party or third party, fire and theft, is an indicator to the insurers that the driver is at higher risk of being involved in an accident, therefore the premium is higher or, at the very least, not significantly lower, than fully comprehensive cover. So, rather than going straight for what you assume will be cheapest, it will definitely pay to compare third party and fully comp against each other.
Get the right name on the policy
If the vehicle that the young person will be driving is likely to be used by more than one other family member, it is possible for it to be insured in either name. However, it is illegal to insure a car in the name of someone who is not going to be the main driver. For example, if a family has a main car and a run-around, and the teen uses the run-around to learn in and, eventually drive, that car is likely to be insured in the name of the parent (owner). However, if the young person buys a car that other family members may use from time to time, the car needs to be insured in the young person’s name; insuring it under someone else is known as fronting and could make your insurance invalid (as well as being considered fraud).
If the insurance is in the name of the young person, it can help lower the premium if they have someone else added to the policy as a named driver. Anyone older; a parent or other relative, will help to reduce the overall perceived risk of the vehicle and reduced risk is translated to reduced premiums. Again, don’t make up grannies with 90-year no-claims bonus, or add Jeremy Clarkson as a named driver; your named driver(s) must be people who could – and probably will – use the car.
When entering your details into an insurance website, remember it's essential that the information you give is factually correct, but minor tweaks can make a big difference to your premium.
Just as the best way to find a local garage is from recommendations and directories such as Trust A Garage, the best way to find the right insurer is through recommendations. Ask your driving instructor for advice.
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