By Suzi Dixon
Just because you’re young doesn’t mean you have to resign yourself to an expensive motor policy. Make sure you get cheap car insurance by comparing prices with Confused.com, and here are 10 top tips to help keep your costs to a minimum.
If you’re 18 to 25 years old, you’re seen as high risk by most insurance companies. This is partly due to driving experience: less experienced drivers are statistically more likely to have an accident, therefore more likely to make a claim.
So if you’re in this age group, what can you do – aside from getting older – to bring the cost of the cover down?
1. Build up a bonus
Insurers will cut the cost of cover to customers who have a record of not making claims, and who have built up a few years’ no-claims bonus. This shows they are experienced, less risky drivers – exactly the kind of people insurers want to do business with. Read more about no-claims bonus (NCB) here.
One way for young or new drivers to build up this experience – and get their no-claims bonus more quickly – is by signing up to a policy with a bonus accelerator. These policies typically run for slightly less than a year – usually 10 months – but give the policyholder a full year’s no-claims bonus at the end.
So you would be able to build up three years’ no-claim bonus in just two-and-a-half years. This kind of policy is also suitable for anyone who has recently had to make a claim, and needs to start building up their no-claims bonus from scratch again.
2. Take extra training
Passing an extra driving qualification such as Pass Plus shows insurers you are less of a risk, and many will cut your premiums accordingly. Need help with the cost? Some local authorities (including every council in Wales) may help you meet the cost of a Pass Plus course - check your local council’s website for details.
3. Buy a low-risk car
Buying your first car? Check out this list of cars that are cheap to insure. Steering away from the stereotype of the boy racer is a good way of reducing car insurance costs. Opting for a vehicle with a smaller engine will save you money on your car insurance policy AND your fuel.
4. Keep your car safe and secure
Better in-car security and parking in a safe place could reduce your insurance premiums. Having an alarm, immobiliser or tracker professionally fitted, using steering or handbrake locks, or parking your car in the driveway or garage overnight, are all ways to cut insurance costs. Check out our 8 Great Car Security Tips for more information.
5. Keep a clean driving licence
A clean licence is one without any penalty points. If you break traffic laws, you could incur points, a fine, a driving ban, or all three. This is why it’s absolutely vital to drive safely if you want to keep insurance costs down. You can receive points for transgressions such as driving without due care and attention, driving while over the alcohol limit, or speeding. Read more about driving convictions.
6. Consider taking public transport to work
If you use your car to commute to work, it will push up the premium. Use the car for just “social and domestic” reasons and you’ll get a better deal. So ditch the wheels and take the bus.
7. Avoid modifications to your car
Any modifications from the "factory fresh" version of your car will cost you extra. Arealloy wheels and other performance enhancements really worth it? If you want cheaper insurance, avoid modified cars.
8. Up the voluntary excess
Voluntary excess is what you agree to pay in the event of a car insurance claim, on top of the compulsory excess. Raising the excess will reduce your premiums, but it does mean you will have to pay more of the costs if you have to make a claim.
9. Pay for car cover in one go
Paying for car insurance in monthly instalments may feel easier on your bank balance but you’ll likely pay more over the course of a year. This is because many insurance providers will give you a discount if you can stump up the entire year’s premium in one advanced payment.
10. Consider a lower level of car insurance
In the UK, the only compulsory car insurance is Third Party Only (TPO). As such, you are not obliged to opt for more expensive levels of cover such as Third Party Fire and Theft (TPF&T) and Comprehensive (Fully Comp or Comp). However, it’s vital that you understand the difference between the three levels of cover before choosing, as TPO could leave you with a very expensive bill should your car be involved in an accident. You can find more information here.
One more tip
Use Confused.com to find cheap car insurance. Confused.com will quickly search and compare a huge range of car insurance quotes to suit your needs. The service is simple to use, takes just minutes to complete, and is a great way to find the right car insurance at the right price.
