Choice of car
Buying your first car is an exciting time and you’ve probably already got an idea of a few models you’d love to call your own. Although your dream car may be something fast and fancy, beware of the hefty cost of car insurance for new drivers.
The car you choose can have a huge impact on the price of car insurance for first-time drivers. A group rating system is often used as one of the factors to determine the risk insurers face when covering a particular car. There are 50 different insurance groups ranging from 1 to 50 with 1 usually being the cheapest to insure and 50 being the most expensive.
If your dream car sits in the higher insurance groups and you don’t want a hefty insurance bill, it might be best to hold off until you’ve got a few years no-claims-bonus behind you.
Unfortunately, being a first time driver, your car insurance isn’t going to be the cheapest because of one primary factor, risk.
Most new drivers fall into the Under 25s bracket and industry statistics show that one in four 18 to 24 year olds crash within two years of passing their driving test. Insurance providers see this as risky and that’s why car insurance for new drivers is going to be more expensive than someone with a few years of experience behind the wheel and some no-claims-bonus under their belt.
Earning a no-claims bonus takes time so you’ll have to be patient. Each year that you’re insured and don’t make a claim that’s a years no claims bonus in the bag.
Although it will take a few years to build up, once you can prove to your insurance provider you’re a safe driver then you should start to see the prices come down.