First-time, teenage and young drivers typically pay higher insurance premiums than older and more experienced drivers. Their inexperience on the road works against them, they are deemed a higher risk by insurance companies, and thus their premiums are higher. However, this does not have to be so because there are ways to get lower insurance quotes. Although you cannot expect to match the quote given to older and more experienced drivers, you can expect to pay a reasonable rate.
About Black Box Insurance
Young drivers who have just passed their provisional driver’s test are often told to find black box insurance. What is it? It is an insurance policy that lets the insurance company fit a device that tracks how you drive. The device collects data that it then sends to the insurance company. Because of the monitoring, drivers who accept these policies and have the device on their cars are considered lower-risk drivers.
However, despite being cheaper for young drivers, there are two main problems with a black box insurance policy. One, not everyone wants their data to be set to a third party. We are living in a world where more people are conscious about privacy and so this would not be an option for them. Two, the pricing is often dynamic. This means that if the insurance company concludes that you have broken rules or you are driving in a way they do not like, they can increase your premiums. Young drivers will make some mistakes on the road, and dynamic pricing negates the preference for the cheaper option.
A no black box insurance policy will be pricier, but it does not come with the downsides listed above. Additionally, you can use comparison sites to get the best no black box insurance policy that provides you with adequate coverage. These platforms allow you to compare no black box insurance from hundreds of providers so you can find an affordable quote.
Buy a Car in a Lower Insurance Group
Whether you are buying the car yourself or your parents are buying it for you, you should always check how much insurance you will have to pay. Cars are placed in different categories depending on the level of risk they present – often determined by the number of accidents and incidents in a given period – how likely it is to be stolen, its price and how much it would take to repair or replace if it gets into an accident.
Getting a car in a cheaper insurance group typically applies to those who haven’t bought a car yet. However, you can choose to downsize the vehicle you have, so you end up paying less in insurance premiums.
Add a More Experienced Named Driver to the Policy
If you add a named driver to the insurance policy, this can also be incredibly helpful in keeping your insurance premiums low. Some insurance companies conclude that the younger and often inexperienced drivers will spend a lot less time driving the car if they have a named driver on their policy. This lowers the risk, and some insurance companies will reduce premiums to reflect this.
Take Advantage of Discounts
If the insurance company has any discounts, you should try to take advantage of them. A common discount offered by insurance companies is one tied to paying annually instead of monthly. This can be a very painful option for young drivers who might not have a massive income, but it can end saving them a lot of money. It also reduces the financial headache because they do not have to think about paying their car insurance monthly and only have to think about it once a year.
Keep a Clean Driving Record
As you get older, you might be able to lower your insurance costs down if you have a good record. This typically applies to drivers approaching the age of 25 which is usually the cut-off point for young drivers. Insurance companies do understand that you will have a few incidents on your report, but they do not want to see numerous accident and incident reports tied to you. If they do, you will have a very rough time as their premiums will increase. This is tied to the insurance company seeing you as a higher risk.
Maintain a Good Credit Record
This also applies to those approaching 25. Studies show that people with better credit are less likely to take risks and thus are more likely to get into accidents. Although you will be at the start of building your credit score at the time, it is still a good idea to think about how it will affect your insurance premiums in the future. Learn how to improve your credit and maintain a good credit standing, and it will help you in more ways than helping keep your insurance premiums low.
Young drivers typically do not have a lot of experience on the road, and this is why they are considered a higher risk by insurance companies. This is reflected in the premiums they pay. However, there are a few things they can do to lower these premiums and keep them so in the future.