Young drivers are amongst the hardest hit in terms of car insurance prices. But if you’ve got a car, you’re gonna need insurance, so be savvy and follow our 7 car insurance tips for young drivers:
Tip 1 – Do you really need that Ferrari?
OK we’re exaggerating a bit… but you can make a handsome saving in your insurance costs by being careful with the car that you choose. Obviously a brand spanking new BMW is going to cost you more to insure than a 20 year old rust bucket, but when it comes to typical first cars it can pay you to take a look at typical insurance costs across a range of makes and models as well as against different ages of car. Even a few quid saved is cash in your pocket, (and they all get you to where you’re going just the same).
Tip 2 – Watch your excess
All car insurance policies come with what’s known as an “excess”. This is something that determines how much of any claim you are liable to pay before the insurer coughs up, so for example if your claim for whatever reason was for £1000, and you had a £250 excess, the insurer will only pay £750. Standard stuff. But quite often you can set this excess at any level. Most insurers include a “compulsory excess” of a certain amount, but the “voluntary excess” part is up to you. Why is this important, we hear you ask? Very simply, the greater the excess, the lower the insurance premium.
Tip 3 – Don’t drive like an ar$e!
Insurers love safe drivers. Funny that, eh?! The less accidents you have, or the less points on your licence you get for getting caught going 35 in a 30 zone and arriving at the gym a whole 23 seconds earlier, the more likely insurers are to give you a better deal on your next year of insurance. Be safe!
Tip 4 – Embrace DriveTech
Is DriveTech even a thing? Anyway.. we’re talking about telematics or as they’re better known, “black boxes”. These smart bits of gadgetry connect to your car and like an ever-present mini police person hiding under your dash, and they shop you up to your insurer if you aren’t driving safely. Basically this means observing speed limits, not cornering like an F1 driver and a bunch of other stuff that constitutes “driving like an ar$e” (see tip 3). Why is this important? Having a black box, and demonstrating that you drive nicely, can make a huge difference to your insurance cost!
Tip 5 – Your dad isn’t Lewis Hamilton
So you’re fully sorted with your nice new wheels and you’ve used honcho to get the insurance deal that’s right for you: winner. You’ve gone for a black box, and your driving is so sensible that even your granny will get in the car with you. All good. Until one of your parents asks to drive your car. “Don’t worry love, I’m covered on my insurance” they say. Excellent. Except.. that little black box thing really doesn’t care who is driving the car, and when your dad hits 90 on the ring road in a bid to get to B&Q before closing, it is YOU who is going bear the brunt of it when the insurance company comes to look at your price next time…
Tip 6 – Add someone to your insurance
OK this is a bit of a complicated one. Let’s say you add your older sibling to your insurance. They are a safe driver with a nice healthy no claims bonus. Insurers can like this sort of thing and it can bring your insurance costs down. However, you need to be aware of something called “fronting”. This is where the insurance is taken out in (usually) a parent’s name, with the young driver named as the second driver. This can reduce the insurance price, but there’s the slight problem of it being illegal and the real potential that if you did try to claim the insurer may well not pay up. Not good. Just say no.
Tip 7 – Be careful with price comparison websites
Conventional wisdom says that old fashioned price comparison sites are the cheapest route to car insurance. We aren’t so sure that this the case. Did you know these sites receive commission – on average £50 – from the insurer whose product you buy, and that this this cost is passed directly on to you within the price that you pay? Thought not. At honcho we are getting ready to do things differently, with insurers bidding to win your business and with no commission involved at all. Keep an eye on www.gethoncho.com, not long to wait!