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Tackling high insurance premiums for young drivers

High premiums for young drivers

For young drivers, the costs associated with getting out on the road can quickly add up. From the cost of learning and the test itself to purchasing a car and ensuring that it is insured, there are plenty of outlays to factor in.

When it comes to insurance, Money Saving Expert reports that the average insurance cost for drivers aged 17-19 is more than £1,800 annually, a figure that continues to rise.

The situation isn’t much different for drivers under the age of 25 either, as insurance premiums still tend to cost more than £1,400 on average.

This is a significant outlay for any young person looking to drive, but there are some means of bringing the cost down.

Could adding a second driver bring the cost down?

Adding an occasional user to some policies, such as a parent or other older family member, could reduce a young driver’s premium in certain instances.

Essentially, it may bring down the risk level (especially if the older driver has strong record of no claims) but there is no guarantee it will result in lower costs as different insurers will all respond in different ways.

It’s an option worth exploring however, as long as the named driver would reasonably drive the car at some point in time.

On this note, it’s important that someone is never added as a main driver to a policy if they are not – it’s known as ‘fronting’, it’s classed as fraud, and those caught will see their policy voided and could face criminal charges.

What about insurance excess limits?

Most insurance policies will have a compulsory excess amount and this can mean an individual will need to pay a significant sum before they can claim an insurance payout.

Setting a higher excess figure could help to reduce the overall premium, but any young driver will need to ensure that the excess remains affordable, just in case they do need to claim.

Another option for young drivers is to set a higher excess amount to bring down their premium, and then to take out young drivers motor excess protection to cover the excess figure.

This allows a driver to claim the excess figure back using the additional policy, although it’s important to note that the excess figure will still need to be paid initially, before being claimed back.

For a young driver to go down this road, the additional cost of the excess policy should not be more than the amount saved on the premium by increasing the excess figure.

 

Date Created: 13/05/2020


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