For most under 25s insurance is the biggest expense after buying a car. There is no way to avoid getting insurance, as by law all vehicles on the road must be insured. An excess will also apply with most policies, meaning that you have to cover the first part of any claim.
It is worth making use of a number of insurance comparison websites to gain the widest possible comparison of all policies which exist – try:
It might take a while, but will ensure you find the best possible deal.
Haggle with insurance companies to get the best possible deal – using your knowledge of other companies’ offers.
Different Types of Insurance
- Act only: minimum amount of insurance protection required by law and simply covers the driver should an accident occur.
- Third Party: This kind of insurance covers the insured while driving and also protects the car when it is on private property. Usually there is some form of protection against mistakes made by passengers in the car and any legal costs are also covered.
- Third Party Fire and Theft: This form of policy covers all of the above but also includes protection for loss or damage to the vehicle occurring because of fire, and attempted or actual theft.
- Comprehensive: This is the broadest form of insurance, and includes all the protection from the above as well as accidental damage to the car. If the car becomes damaged the insured is entitled to have the car repaired or replaced. Comprehensive insurance also ensures that if a serious accident occurs and serious injuries are sustained, payments will be made.
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Your Premium
How your premium is calculated
The calculation of the insurance premium is dependent on numerous factors, and this is where being a student driver can have its downsides.
- The first consideration that the insurance company will consider is the type of car you are attempting to insure. The more expensive and powerful the car the higher the premium, but the older the car, the higher the premium also.
- The insurance company will also look at the main characteristics of the driver – age, sex, driving experience, etc – and this is where the problem occurs for student drivers. It may be worth using a website such as 17to40.co.uk that isspecifically aimed at students and young people. 17to40.co.uk is part of the student insurance company Endsleigh.
- The third factor taken into consideration is what the car will be used for, ie: will the car be used for business or domestic use.
- Lastly, insurance companies will look at where the car will be kept – its overnight location. If you can prove that the car is being kept in a garage or in underground parking the insurance company may reduce the premium.
Reducing your premium
- MoreThan has introduced Drivetime , a specially designed policy for 18-25year olds with a GPS being installed to accurately calculate the premium.
- Check out insurancewide.com which divides potential insurers into groups who are willing to deal with 'problem' customers – ie: those in certain age brackets. This allows you to search insurance companies who have a positive interest in the characteristics that you meet.
- Enrolling on a pass-plus driving scheme can substantially lower the cost of insurance for young drivers, as insurers recognise the benefit of the extra modules which are studied – see passplus.org.uk for more information. If you will only be using the car outwith term time certain insurance companies offer PAYG insurance starting from as little as one day cover.
Insurancewide motorwizard search engine has the ability to sort insurers into those that cover groups which are harder to insure, such as older drivers and young drivers. The website will distinguish insurers with positive attitudes towards your needs – perfect for student drivers who have traditionally struggled to find insurance.
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