So you are 17, you have a driver’s license and in line to buy a new car. Selecting the right car for a teenager is important because the cost of insurance depends on it. And unfortunately, car insurance for teenagers is a bit more expensive than insurance for more experienced drivers.
After attending the Pass Plus course, you have to ensure that the car you buy belongs to the low-risk category. The information about the low-risk category is available on the Association of British Insurers. It is always better to go for a car with a small engine and no modifications. If you buy a car with a more powerful engine or with a lot of modifications, then the insurance will cost a lot more.
It is quite challenging to find affordable car insurance for teenage drivers. Insurance companies quote statistics which shows that teenagers are more prone to accidents. Teenage drivers are generally considered as a high-risk group. According to a recent survey, the level of teenage car insurance UK claims is very high compared to any other age group. This is the one reason why car insurance premiums for teenage drivers are so high. In the first year of driving, teenage drivers are more likely to make a claim than those over 25 years. Remember that in the UK it is a must that you have car insurance, and if you are on the road without insurance it would cost you a lot.
The next thing to do is to calculate the mileage. You have to be very careful here; first calculate the daily commute and then the additional miles that you are likely to drive. Let the insurance company know you don’t drive regularly or long distances. This is something that will bring down the cost of the cover. Remember that is you exceed the mileage and something goes wrong, your claim will be denied.
Some teenagers add junior’s car to the parent’s policy. This might be cheaper in the short term but is not advisable. The main reason is that the youngster will not have the responsibility of building up a no claims reputation. This is very important as it will go a long way in getting the young person, a no-claims discount at the end of the year and also a better deal with the next car and the subsequent policy.
What happens when you add teen car insurance to your policy? The insurance bill is likely to shoot by 150%. For male teenagers, the bill is usually higher compared to teenage girls. The risk of teenagers getting an accident is four times higher compared to adults.
If you wish to add teen car insurance to your policy, follow these simple steps.
- Contact your car insurance company and discuss with them the changes that you wish to make to your policy.
- Ask about the minimum and the maximum coverage and get to know the advantages and disadvantages of each. Ask if there are any discounts.
- Make sure you have your teen’s driving license and details of their car.
- Take time to think. Meanwhile, you can compare prices with other insurers. Go for the cheap insurance for teens.
The other alternative is for a teen to buy his or her policy. There are many insurers selling car insurance for new drivers under 21. There is an advantage in teens car insurance since they can start building no claim discounts. The earlier you buy your own insurance policy, the earlier you start enjoying a No Claims Discount. Some insurers have misfueling cover in case you fill the wrong fuel.
Getting cheap car insurance for new drivers under 21 years is challenging. This is because they have less driving experience and they are at higher risks of crushing. Factors that affect car insurance premiums include engine size and car modifications. Cars are put into different categories based on their engine size and modifications. Expensive cars will attract higher premiums. Modifying your car will attract higher premiums. Likewise, failing to inform your insurer about the modification is likely to disqualify you from making a claim.
When you have to make a claim, then you need to pay an excess. Teen car insurance excess is the contribution you make towards the full cost of your claim. This happens when you have been involved in an accident, you report to your insurer and make a claim. The amount of the excess depends on the type of the car insured, its age, driver’s experience and driver’s protection for No Claims Discount. If you want to reduce the cost of teen car insurance, you can increase your voluntary excesses. However, you must afford voluntary excesses and the teen car insurance excess. In most instances, you will not need to pay the excess amount. Instead, it will be deducted from the amount you will receive as a settlement.
Most companies use the same criteria to determine the price of the premiums. These factors include:
- Age of the driver. The less the driver’s experience, the higher the insurance cost. This is because they are at higher due to lack of adequate experience.
- Driving Record. If you have a clean record, then you get cheaper insurance for your car. If you are a young driver and do not have any record, it becomes challenging. Luckily, you can build your record with time.
- Credit score. If you have a higher credit score, then you can pay less for your teen car insurance. Unfortunately, most teens do not have a credit history.
- Safety of the car. If the car has higher safety standards, it lowers the cost of insurance. Insurers look at the safety technology of your car to determine the price.
- Location. People living in urban areas have higher risks of theft and accidents. For this reason, people living in rural areas pay less for insurance.
- Coverage. The insurance policy that you pick determines the amount to pay. If you pick a higher plan that has more coverage, then you can expect to pay more for your insurance.
Teen car insurance is not quite a gloomy scenario for teenage drivers. If you are wondering if you can get cheapest insurance for teens, this is how to get cheap car insurance at 17. Shopping around will help you to find cheap insurance for teens. Check out the company websites and select one which suits you the best. Some of the best car insurance for teenage drivers available includes:
- Direct Line Plus. It offers an upfront discount for your first year if you are twenty five years and below. If you have higher scores, you can enjoy other discounts at the end of the year. You can download their app and keep track of your scores.
- Drive Like a Girl. When you sign up with the insurer, you get monthly rewards and you can drive with no curfews and no fines. The insurer mainly targets teens aged between 17 and 25 but it also open to other age groups. It is suitable for drivers who don’t intend to drive overnight, from 11 pm to 6 am. It is among the cheapest car insurance for teens.
- Co-op. The insurer installs a black box in your car to keep track of your acceleration, braking and speed. To qualify for a 20% discount, download the Co-op young driver app before you can sign up and then drive 200 miles for about ten different days.
- Insure The Box. The insurer has a GPS device that tracks how you drive. You can either go for 6,000, 8,000 or 10,000 miles every year. When you drive safely, then you earn extra miles.
Cheap car insurance for teens is available from many companies. We advise you to first shop around and then decide on the best car insurance for teens.