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Young drivers are struggling more to afford motoring, the combination of soaring fuel prices and the rising cost of insurance is making it this way, it is possible to keep costs down though.
Younger, inexperienced drivers present more of a risk to insurers, which is reflected in the prices of premiums. The Association of British Insurers (ABI) has said that men under the age of 21 are ten times more likely to have an accident and subsequently make an insurance claim, than those over 35.
Pass Plus, an additional driving qualification, is one way young motorists can keep the cost of their cover down. The cost of this type of course is between £100 and £150 but you could save a lot more on you first year’s insurance policy.
A spokeswoman for RBS Insurance, Jennifer Culley said: "The benefit of the Pass Plus scheme is that it gives the policyholder a discount at the start of their time as a driver.
"However, if they already have a no claims discount in their own name, they would not receive a further discount for achieving the Pass Plus certificate. Younger drivers often think that buying an old banger will mean cheaper insurance premiums than when buying a new car. However, this could prove a costly mistake.
"Get a car with a small engine. Many motorists believe that if the car is old, the insurance is cheaper. However, older cars are easier to steal and often have bigger engines.
"They are also heavier, so cause more damage if they are in a collision. Young drivers should try to get a small car by a well-known manufacturer with a 1.0 or 1.2-litre engine to help keep insurance costs down."
A tactic that consumers often use to keep the cost of car insurance down is known as “fronting”, this is where one person, usually a parent, insurer a car in their name and adds their child as a named driver. However if the named driver is the main or only driver this could have implications should a claim need to be made.
Research by Zurich Insurance has revealed that one in ten people who bought a car for a child or grandchild insured it in their own name, they were not aware that they could be committing insurance fraud through doing so.
A Zurich spokesman said: "An insurer would be within their rights to decline a claim or recover any third party costs from the child or parent and grandparents themselves. If a claim is declined, the police could treat the driver as driving uninsured and so be fined and receive six penalty points, which would mean an automatic ban for a newly qualified driver. They will also have to declare that a claim has been declined on future insurance applications, raising their premiums."
However young drivers can save money by being named drivers on parents’ policies if they are an occasional user of the vehicle. They could be named on the policy as a permanent driver, or added as a temporary driver during periods they would be using the vehicle.
Insurers often offer online discounts when buying insurance policies so shopping online could save up to 10% of the premium price. It also pays to shop around, using an online comparison website such as OnlyInsurance.com will mean you get the best deal on the market available to you.
A spokesman for comparethemarket.com, another comparison site, said: "Other tips include considering third-party fire and theft cover, but always look at fully comprehensive policies too. It is better to opt for the latter if possible, but if your car is low value, thirdparty cover may be more appropriate.
"Also, think about security measures – can your car be parked in a garage or off the street? Don't modify your car as this can really hike up the premium.
"Increasing your excess – the portion of any insurance claim you must pay yourself – will also reduce the cost of cover, but remember not to set it too high, as you may not be able to afford to make a claim."
By: Jemma
Article Source: www.ArticlesBase.com
Jemma is an author of several articles pertaining to Mortgages, Insurance, van insurance, life insurance, car insurance, home insurance, and other business and finance articles.
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