Confused.com’s quarterly car insurance price index has revealed the cost of cover for drivers in their early twenties is almost 25 per cent more expensive than last year.
Car insurance costs for drivers aged 21 to 25 has risen 24.5 per cent in the past year, according to the quarterly Confused.com/Towers Watson Car Insurance Price Index.
The cost of comprehensive car insurance for drivers in this age group now stands at £1,470.
The cost for men in this age group is even higher at £1,958, with women shelling out £1,198 for the same cover.
Save money – tie the knot
However, there is one way to cut costs – get married.
Male drivers in this age group who add a spouse to their policy will see their insurance costs fall to £1,257 on average – a saving of £701.
Female drivers who do the same will see their cost fall to £1,068 – a more modest saving of £130.
Further price rises
The average price of a comprehensive policy for male and female drivers aged 21 to 25 increased 2.5 per cent across the UK between April and June 2011.
And the cost of cover continues to rise – up from 1.5 per cent between January and March 2011.
But the cost of comprehensive cover still works out as cheaper than third-party, fire and theft, which is up 33 per cent in the last year.
Other ways to save
Despite the figures, there are a number of ways you can look to lower costs.
Gareth Kloet, head of motor at Confused.com, said: “For young male drivers it has never been more important to shop around for the best price.
“Our consumer research shows that 50 per cent of under 25s could save up to £556 on car insurance* by using Confused.com. This is one way to help combat these rises.”
Don’t overestimate your mileage
Mileage is one of the rating factors insurers use to calculate a person’s premium so it pays to spend a little time trying to estimate as best as you can how many miles you’re likely to drive each year. But bear in mind that underestimating your mileage could invalidate your insurance policy when it comes to making a claim.
Higher excess, lower premium
Consider a higher voluntary excess to cut your annual premium. This is an amount you choose to pay in the event of a claim. In return for opting for a higher excess, the insurance provider will usually lower the premium. But don’t forget that the voluntary excess will always be paid in addition to any compulsory excess.
Value your vehicle accurately
It’s incorrect to assume the higher you value your car the more money you’ll receive in the event of a claim. Insurers will only pay out the current market value of the vehicle so inflating the value of your vehicle serves no purpose other than increasing your car insurance premium.
*Based on online independent research, Consumer Intelligence (May ’11). 50 per cent of consumers, aged 17 - 25, could make this saving.
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