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.
