Being a first-time driver can feel financially prohibitive, especially in the wake of recent legislative changes. As the safety of your driving is unproven, insurers can charge higher premiums than you feel you really deserve. On top of that, a 20% rise in insurance premium tax and changes to the way of calculating lump sum payouts have sent premiums soaring by as much as £1,000 annually.
However, if you are a novice driver, you can relieve the monetary burden by following these tips.
Carefully select your tier of cover
You might initially think that choosing the most “no-frills” level of cover, third party cover, would save you more money than fully comprehensive insurance. However, this doesn’t strictly bear true; in fact, comprehensive is often cheaper than third party cover, says the Money Advice Service.
There is a method to this madness: young or inexperienced drivers have tended to select the most basic cover, The Telegraph notes. Thus, insurers raised premiums due to the bigger risk of claims.
Drive less often – and more safely when you do
If you habitually get into your car to make a trip to a shop that is only a 10-minute walk away, you might want to routinely keep such short journeys on-foot from now on. After all, as a general rule, driving becomes riskier – and, thus, worse for your premiums – the more you do it.
Also, during your first year of driving, avoid any accidents, claims, or points on your licence; you will prove yourself a low-risk driver and so be rewarded with much cheaper premiums at renewal time.
Have a black “smart” box installed in the car
You might see insurers referring to this practice as “telematics”. It’s where technology can monitor the way you drive, pass the gathered information onto your insurer, and so give them sufficient reason to – should safe driving habits have been recorded – lower your premiums.
Shop around for a better quote
If you tend to just renew your insurance year after year, without even stopping to look at what your premiums will be for the coming year, you are not giving your insurer a lot of incentive to lower those premiums. Why should they try to woo you if you clearly don’t need to be persuaded anyway?
Therefore, instead of simply renewing your current insurance policy, don’t be afraid to compare car insurance quotesfrom various insurers. We can even do the comparing on your behalf.
Thoroughly read a policy before choosing it
How can you be certain that a car insurance policy will cover you in all the ways you want? Well, by reading that policy before proceeding to purchase it. Sadly, if you are a young driver, you could too easily deal with a fake insurer without even realising it, as you can be a particularly large target for them. Check that any insurer and broker you use are authorised and regulated by the Financial Conduct Authority. As a broker, we are vetted in this way.