Posts Tagged car insurance premiums

Don’t be Upfront About Your Car Insurance

It’s long been recognised as a way to get a young driver insured cheaply, yet most people aren’t aware that it’s a form of fraud. I’m talking about Fronting Up – the practice of a parent insuring themselves on their teenager’s car, and listing the teenager as a named driver only.

If you have claimed to be the main driver on a car yet the car is actually being kept at your son or daughters university, you’d have a hard time explaining how it got stolen from the campus car park.

Of course, it’s only fraud if the teenager is the predominant or sole driver of the car. If they only drive it occasionally, then there’s no problem – apart from proving this if a claim is needed.

With car insurance premiums going through the roof for young drivers, it’s not surprising that parents are resorting to this method. In some cases it seems to be a choice of either fronting up, letting your child drive without insurance, or paying a costly premium. Very few teenagers can get jobs that will cover a £2000 premium, so the onus usually falls on the parents. And of course, letting them drive without insurance can now result in an instant driving ban and hefty fines, maybe even having the car crushed, so fronting up often seems like the only option.

But there are ways for young drivers to get cheaper motor insurance. If they haven’t passed their test yet, don’t insure them at all. Let them drive solely under the driving instructors insurance until they get a full licence. Insuring a licensed driver is cheaper than insuring a learner.

Encourage them to take their Pass Plus. This is a course typically costing between £120 – £150 and is offered by most driving instructors. It covers motorways and night driving, and can secure the driver substantial discounts on their premiums with certain insurers.

If you can afford it, buying a new car can cut premiums. Some smaller models come with free insurance for a year, and new cars are recognised as having fewer problems and therefore less likely to result in a claim. If a new car is not an option, go for a car which has no modifications (even a set of alloy wheels can bump up a premium), a low engine size – which will also save on car tax – and generally as low a value and insurance group as you can find.

Beware of certain types of car too. Some models are typically bought by ‘boy racers’ and include the Nova, the Corsa and the smaller Peugeot models. Insuring one of these cars for a young driver, especially a male, can bump up the price of the car insurance still further. Unfair, but true, that the boy racer has raised premiums for all drivers under 25.

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Do You Know What Affects Your Car Insurance Premiums?

In the UK the cost of insurance for new drivers can be prohibitive, in some cases the amount you spend on insuring your car can end up costing you as much or more than the car itself. New and young drivers may not be aware of different ways they can reduce their premiums.

When you pass your driving test the first thing you want to do is get a car and enjoy your new freedom. Ironically one of the reasons that insurance is so expensive is because there are so many people driving around without insurance. This means that all the legal drivers have to subsidise the almost 1 in 10 drivers who are believed to be driving without insurance in the UK.

So how do you go about reducing the cost of your insurance premiums if you are a new or young driver? There are many different factors that go to making up your quote and some of these factors you can change to reduce the cost of your insurance policy.

One of the most important factors is to buy a car in a low insurance group. All cars are grouped into insurance groups, the higher the group the more it is going to cost you to get cover for your car. So buying a car in a low insurance group will automatically save you money.

Cars in low insurance groups are generally the smaller cars such as the Chevrolet Matiz, Ciroen C1 and C2, Fiat Panda, Ford KA or Fiesta,  Peugeot 107, Renault Clio, Skoda Fabia, Smart FourTwo, Toyota Aygo and Yaris and the Vauxhall Corsa. This is not an exhaustive list but you get the idea. You do not have to get a new car as a lot of the older models of the same cars are also in group 1.

If you happen to be a woman then you can also benefit from the fact that lady drivers are safer on the roads and therefore make less claims. This means that you can get a discount and get cheaper premiums by going to some of the specialist car insurers for women.

For many new and young drivers there can be a temptation to customise your car, unfortunately and changes you make to your car must be reported to your insurer and this will usually attract a higher premium. You should not modify your car. You can however get a Thatcham approved alarm fitted to your car which usually attracts a discount on your cover as the car is less likely to be stolen. You can also make sure that your car is parked off the road overnight or in a garage. Doing this will also reduce the cost of any quote that you get.

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How The Younger Generation Can Get Cheaper Car Insurance

When it comes to paying out for your car insurance premiums then the younger driver has always come out the worst. It is a well known fact that the younger driver will have to pay top price for the luxury of driving. However there are ways that the young motorist can make savings when it comes to their car insurance, one of the best ways that the younger person can make savings is by being careful what type of car they choose to drive.

For example, according to recent research, one of the cheapest cars that you can insure is the original Beetle. If a 17 year old was to insure this car and take out third party fire and theft then it could be insured for under a four figure sum. This is the only car that costs less than a four figure sum and after this a 17 year old can expect to pay much more and up to as high as £1336 per year.

The Vauxhall Corsa is the next choice when it comes to the cheapest premiums; this is followed by the Peugeot 106, the Fiat Panda, the old favourite the Mini, Fiat Uno, Citroen AX, Peugeot 205, Renault 5 and finally the Vauxhall Agila.

Another consideration to take into account is the size of the engine of the car. The larger the engine size then the higher premium you will have to pay. As a general rule of thumb you should always stick with an engine size that is less than one litre, if you choose a car with a bigger engine then you can expect your premium to go sky high. A good example of this is a 17 year old chooses a car with a 1.0 litre engine then you could expect to pay around £1336, however if you go to a 1.4 then you can expect to pay at least £4000.

So now you know how to make savings when it comes to your choice of car the best way to get your insurance for your car is to shop online. Shopping online for your insurance you are able to make comparisons with many insurers in order to get the best deal available for your age. Not only this you are also able to find out the different components that are available for you to take with your insurance should you wish to, but of course adding to your policy will boost the price considerably.

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