17 August 2007

Learner Drivers are Safer Drivers | Cheap Car Insurance and Home Insurance from Confused.com

Insurers increase premiums up to 28% for drivers who pass their test
Provisional drivers could find themselves facing hikes of up to 28% simply for passing their driving test, warns www.Confused.com.

Research by the UK's leading insurance price comparison service reveals that insurers class newly qualified drivers as more dangerous than learner drivers, reflected in higher premiums.

The worst offenders for car insurance increases are Barclays, adding £930 to the bill of a newly qualified driver, followed by Norwich Union and Admiral, adding £757 and £614 respectively*.

Insurer	Provisional License	Full Driving License	£ increase	% increase
Budget	£2,371.65	£2,537.76	£166.11	7%
Ibuyeco	£2,388.52	£2,556.18	£167.66	7%
Kwik Fit	£2,415.35	£2,524.12	£108.77	5%
Dial Direct	£2,445.25	£2,616.24	£170.99	7%
Auto Trader	£2,469.45	£2,642.21	£172.76	7%
AA	£2,530.45	£2,712.92	£182.47	7%
YES Insurance	£2,541.49	£2,721.76	£180.27	7%
M&S	£2,572.69	£2,690.73	£118.04	5%
Its4me	£2,602.92	£2,784.79	£181.87	7%
Norwich Union	£2,765.99	£3,522.99	£757.00	27%
Endsleigh	£2,833.04	£2,930.06	£97.02	3%
Admiral	£2,837.12	£3,451.35	£614.23	22%
Insureyourmotor	£2,898.89	£2,939.97	£41.08	1%
Masterquote	£3,053.40	£3,129.38	£75.98	2%
Barclays	£3,366.99	£4,296.99	£930.00	28%

Data provided by www.Confused.com. Correct as of 27/07/07.

*Based on 19-year-old sales assistant (M), living in Portsmouth, driving Vauxhall Astra LS 5 door hatch 1996. Annual mileage 6,000, £250 excess, zero no claims. All other details as standard.

Commenting on its research, Debra Williams, managing director of Confused.com said: 'The insurance industry views learner drivers among the safest drivers because of the low number of accidents they have compared to their fully-licensed counterparts. It's a common misunderstanding among new drivers that the cost of car insurance decreases after passing your test, when in reality the opposite is true. That said, increases of 28% are excessive and could result in new licence holders failing to inform insurers they've passed their test. This is a major worry as young drivers could almost certainly invalidate policies.

'When purchasing a car insurance policy for the first time we urge learner drivers to shop around for an insurer who remains competitive after passing your test. Insurance doesn't have to be expensive if you know what you're looking for. Our advice is to do your homework, look beyond the marketing hype and weigh-up short-term savings versus long-term benefits.'

Useful tips to help new drivers reduce premiums:

• Shop around. Every insurer prices differently because they rate risk according to their own individual claims experience, hence it's essential to shop around regularly.
• Build up your no claims bonus as quickly as possible. This is one of the most significant ways of securing cheap insurance long-term. Consider opting for an Accelerator policy that gives you 1 years' no claims bonus in 10 months.
• Pay in one lump sum rather than by installments. If you don't have a credit card, speak to your parents, maybe they'll front the cost and you can pay them back later.
• Avoid cars with large engines or modifications - boring but true. The message is simple, if you want cheaper insurance don't buy a modified car or make any modifications yourself. For the first couple of year stick to a smaller car with a smaller engine.
• Don't 'guesstimate' your annual mileage. Make a more accurate calculation by comparing your MOT certificates.
• Add an experienced driver who has a full clean driving license and a good no-claims history to your insurance.
• Increase your voluntary excess. Choose how much to pay upfront should you have an accident. The higher your excess the less your annual policy will cost - however, if you have a high excess, make sure you can afford it should the worst happen.

• According to DVLA data there are 3,596,304 female provisional license holders and 2,823,572 male provisional license holders.
• In June 2007, Confused.com helped 41,505 provisional drivers find a good deal on their car insurance.
• Confused.com is the UK's leading insurance price comparison service, allowing people to search and compare the best premiums for car, home and travel insurance.
• Confused.com provides real-time, fully-underwritten quotes in less than two minutes - this means the price you see is the price you pay, guaranteed.

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