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Car Insurance for New and Young Drivers

Teenage car ownership is now at its highest level ever, with an AA survey revealing that more than two thirds of new drivers had acquired their first car before reaching the age of 20.  However, buying a car at a young age can be an expensive affair - particularly as it relates to car insurance.

According to the British Insurance Premium Index, average quoted car insurance premiums increased by 5.6 per cent during the three months ending September 30, 2009.  Young drivers took the brunt of the hit with average third party, fire and theft (TPFT) premiums, typically bought by new drivers, sky rocketing by 9.3 per cent to average £1,059.

It seems new motorists are penalised for their lack of experience on the road and the poor driving record of their peers.  However, there are ways to keep premiums down.

Choose an Appropriate Small Car

Generally, the larger the engine, the higher car insurance premiums are likely to be. This is because high performance cars are more likely to be driven at fast speeds, particularly by so-called 'boy racers'.  What's more is that more expensive cars are often the target of theft and vandalism, with theft of upmarket cars increasing by 15 per cent over the last six months.

As such, the Association of British Insurers began categorising vehicles in insurance groups ranging from 1-20 (this expands to 1-50 in December, 2009).  Cars in the highest groups are those that cost insurers the most should a claim be necessary, while those in the lowest groups are the cheapest to insure.

So before shopping for a car, new drivers should consider which insurance group the vehicle fits into to get an idea of the premiums they are likely to face.  Cars that fit into the cheapest insurance group as of October 2009, include the Chevrolet Matiz 0.8S 5dr, the Citroen C1 1.0i VT 3dr, the Fiat Panda 1.1 Active ECO 5dr, the Ford Fiesta Studio 1.25 3dr, the Nissan Pixo 1.0 Visia 5dr and the Vauxhall Corsa Life 1.0i 12v 5dr.

How Young and New Drivers Can Find Cheap Car Insurance

Choosing the right car is only the first step towards getting cheap car insurance. From there you need to choose an appropriate level of cover.  Third party and TPFT policies are generally preferred by new drivers but they will not protect your vehicle in the event of an accident.  They are usually the best choice if you drive an inexpensive used car, but, if you drive a more expensive vehicle, a comprehensive car insurance policy is a safer option.

Make sure you gather as many car insurance quotes as possible as, according to the AA, more than half of insurers in the UK market won't insure drivers under the age of 20. The leading comparison websites compare quotes from more than 100 insurers - just remember to look beyond price and consider the level of cover you're getting for your money. This could also be a stepping stone to savings as you may find there are policy options you don't need - such as a courtesy car if you have access to a second car in your household.

There are several other ways for young and new drivers to save money including:

  • Take advantage of discounts: Look for discounts for buying online as well as no-claims bonuses. Some insurers offer new drivers rapid bonus schemes allowing them to earn a full year's no-claims bonus in around nine months.
  • Take an advanced course: Completing the Pass Plus course could reduce premiums by as much as 35 per cent with some insurers.
  • Be secure: Adding security features such as car alarms and immobilisers, and parking in a garage overnight could all help you save.
  • Up the excess: Consider increasing your voluntary excess, but only to a level you can afford in case an accident occurs.
  • Pay upfront: If you have the cash, pay premiums upfront to cut out interest charges.

Last updated 23 October 2009.  Based on content provided by GoCompare.com.  Used with permission.

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