Why is car insurance for new drivers so expensive? | Compare the Market

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  • Published on:  Wednesday, February 20, 2019
  • Why is car insurance for new drivers so expensive?

    Most new drivers are young drivers who’ve recently passed their test, and this group are most likely to be involved in an accident. Statistics show that a quarter of young drivers aged 18 to 24 years old are involved in an accident in the first two years of being on the road, and that leads to higher insurance premiums.

    What’s the difference between compulsory and voluntary excess?

    Compulsory excess is the amount of money you’ll need to pay when you make a claim and it’s set by the insurance provider. Voluntary excess is set by you – it’s up to you whether you choose to pay a higher amount, and by how much. Increasing your voluntary excess to a figure you can still afford to pay could help to lower the cost of your premium. However, if you have to make a claim then you’ll have to pay both the compulsory and the voluntary excesses.

    Does adding another driver to my policy reduce the cost of car insurance?

    Adding a more experienced driver to your policy is one way of reducing the cost of your car insurance. That’s because, by reducing the amount of time you spend behind the wheel by adding a named driver who sometimes uses the car, you’re effectively reducing the amount of time during which you could have an accident. But, if they’re listed as the main driver make sure they are the main driver. If they’re not, you could be ‘fronting’, which is a type of insurance fraud. Fronting is when you falsely name a more experienced motorist as the main driver, typically to cut the cost of cover. Doing this is illegal and could invalidate your policy and you might be prosecuted.

    How else can I reduce the cost of my car insurance as a new driver?

    As a new driver, there are many other ways you could reduce the cost of your car insurance including:
    •Comparing quotes from a range of providers – a good way to find a competitively priced deal is to compare car insurance through our comparison service (https://www.comparethemarket.com/car-insurance/)
    •Choose your car carefully – your premium is likely to be more affordable if you choose a car with a small engine
    •Consider a telematics policy – also known as black box insurance, a device is installed inside your car which measures various aspects of your driving, it then shares that data with your insurance provider. If you can prove you can drive safely , your provider might then decide to lower your premium.

    For more on car insurance as a new driver, visit: https://www.comparethemarket.com/car-insurance/content/new-drivers-car-insurance/

    Or compare car insurance (https://www.comparethemarket.com/car-insurance/) and see if you could save.
  • Source: https://youtu.be/-qHaUAvlUXI
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