Best Tips to Save Money with Affordable Car Insurance

The Price of Car Insurance

There are a wide range of factors that insurance companies consider when they price your policy such as your age, gender, address, and car. Although you can’t do much about where you live, or what age and gender you are, there are a number of other things you can still do to bring down the costs of your car insurance.

Your car can save you money on your insurance premium

Remember that the maximum amount an insurer will pay out on a claim is up to the agreed/market value of your car. This means that what type of car you have and how you use it can save you money.

• Cheap cars mean cheaper insurance because the value that your car is insured for is the most the insurer will pay out.
• Some cars are more attractive to thieves than others and because they are more likely to be stolen they will cost more to insure.
• Cars with modifications are more expensive to insure because their risk or value is harder to determine. Also modifications that enhance the car's performance increase the likelihood of an accident or make them more attractive to thieves.
• Imported or unique cars will cost more to cover because their cost of repair tends to be higher especially if parts are harder to find or must be imported.
• Mileage can affect your costs because if you don’t drive your car very often you are minimizing your risks of collision and thus claims. As a result you should be able to get a cheaper price on insurance.

Reduce my car insurance premium by reducing risk

As your policy is priced on the perceived risk of insuring you and your car it makes sense to do all you can to minimize this risk and in turn reduce your premium. Secure parking will reduce the risk of theft, vandalism, flood, and storm damage claims. A good driving record reduces the risk of you making a claim. Safety and security devices installed will also reduce the risk of theft and damage.

Claim your discounts

Insurers will often reward you for your good driving records as well as experience on the road. Some insurers also provide a discount for taking defensive or advanced driving courses. Other discounts available include bundling policy discounts, Eco-friendly discounts, family discounts and loyalty discounts.

Shop around online for car insurance quotes

There are numerous factors affecting the cost of your car insurance that the only way you are going to get the best deal is to shop around. Even though most insurers use similar risk factors to price their policies, an insurer’s own experience with a vehicle model or demographic also plays a part in their pricing. For example if they have paid out more claims on a type of vehicle they may apply a higher risk factor to that vehicle than the next insurer would.

Don’t just renew your policy, read it and compare it because if your situation has changed, you may be able to find a cheaper policy elsewhere. If you don’t have the time or patience to call around and be asked to hold, comparing car insurance quotes online is an alternative that is time efficient, and of course, we have that service ready for you right here!

Others ways to save

• Pay your premiums annually. The option of paying in installments comes at a cost so if possible pay your premiums in a lump sum.
• Adding other drivers to your policy may be expensive. If you have young drivers in your family you may consider letting them buy their own policy, after all they will need to start their earning their driver rating at some point.
• Increasing your excess will also reduce your premium.
• Don’t add extras that you don’t need

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Market explained of car insurance for the young driver

The cost of car insurance for young drivers can be eye-wateringly high. They often come in at several thousand pounds and can be more than the purchase price of the car. Little wonder young drivers frequently get extremely frustrated at the prices they are charged for cover.

The main reason why young driver car insurance costs so much - and is so expensive relative to that for older and more experienced drivers - comes down to the number and size of claims made by young drivers. The statistics show that younger drivers are more likely to be involved in an accident than their older counterparts.
What's more, the cost of a claim involving a young person tends to be higher than the cost of a claim involving an older driver. This is because many claims associated with young drivers involve collisions at high speeds when there are several passengers in the car - the combination of damage to the vehicle or vehicles involved and the personal injury costs accounts for the large sums involved.

Costs on top of insurance

Of course, insurance is not the only expense associated with driving. Fuel costs remain painfully high, and there are road tax and garage bills to consider as well.  These can be a huge burden for drivers of all ages.

worldinsuranceinfo-blog has found that two-thirds of drivers have changed their driving habits in a bid to keep costs down, while 5% have been forced to give up driving their car because the costs were too high - so young drivers are clearly not on their own when it comes to experiencing the financial pain of running a car these days.

Reducing the financial burden

With costs so high, any savings are welcome, so here are a number of ideas on how to get cheap car insurance for young drivers:

Carinsurance groups
Insurance companies allocate every car registered to drive on UK roads to one of 50 car insurance groups. These take into account the make and model of the car, its performance capabilities, the cost of repairs, in-built security features and how attractive it tends to prove to thieves. Insurers also overlay their statistics about how often particular cars are involved in accidents.

In general terms, the higher the number of the group, the bigger the insurance premiums will be. Other factors will obviously be taken into account, such as the age and location of the driver and his or her driving history, but the car's insurance grouping will be significant in determining the eventual size of the premium.

You are likely to get the cheapest car insurance for young drivers available if you opt for a car from a lower group. For more information on how the car insurance group system works, visit www.thatcham.org

Mileage

If you have a low annual mileage you should be able to lower your premium relative to someone who drives further each year. The logic is simple: the more miles you drive, the more likely you are to be involved in an accident. But make sure the figures you give to the insurer on your proposal form are accurate because you could invalidate your policy if you breach the agreed annual mileage limit.

Our young driver car insurance comparison tool features a useful calculator to help you work out how many miles you drive each year.

Drive with care

Points on your license often mean pounds on your premium, so avoid speeding and other transgressions. Racking up points can quickly add 5% or 10% to your young driver insurance costs and, if you are found guilty of a serious offence such as drink-driving you could see an increase of 50% or more. You might even find it difficult to obtain cover at all.

Excess
Most policies have a built-in, compulsory excess of £100 or perhaps £200. This is the amount you must pay towards the cost of any claim.

You can also choose to have a voluntary excess at a level chosen by yourself. If return for agreeing to pay more towards the cost of any claim, you will normally be rewarded with cheaper car insurance for young drivers.

It is important to make sure you can afford to pay the combined (compulsory plus voluntary) excess should you have to make a claim.  Also be aware that, the higher the combined excess, the higher the amount will be before you can even make a claim on your policy. If your total excess is £400 and you suffer £300 worth of damage in a bump, you'll have to pay the lot yourself.

Claim free driving
Drivers who don't make claims can build up a no-claims discount (NCD). The NCD can be valuable, knocking up to 70% off the cost of car insurance for young drivers after five consecutive claim-free years. Your actual premium might still increase at renewal - you'll simply get the discount off the higher amount. For this reason it is always important to shop around for young driver insurance premiums when your renewal is due rather than automatically sticking with the same insurer.

NCDs are “portable”, which means you can transfer them to the new insurer if you move your policy.
If you build up a substantial NCD, it can often be worth paying for minor repairs yourself rather than making a claim on your policy and losing the discount.

If you pay an additional premium you can protect your discount so that you can make one or perhaps two claims in any 12-month period without jeopardising your NCD entitlement.

Check your cover
There are three types of motor insurance policy: Fully Comprehensive, Third Party, Fire & Theft and Third Party. Third Party car insurance is the most basic and the legal minimum to drive on a UK road. It covers the policyholder for any injury or damage to another person or their property.
Third Party Fire and Theft car insurance
is a step up and includes loss or damage to your car as a result of fire or theft. Fully Comprehensive cover offers the broadest range of cover including damage to your own vehicle if you are involved in an accident.

It can be cheaper to opt for a more basic level of cover. This could be a sensible option for a young driver with a car that isn't worth very much. But you should always compare all policy types, because the cost of comprehensive cover sometimes stacks up well against the more limited third party fire & theft.

Cut out policy extras
Insurers often build in extra services into their comprehensive policies, such as legal expenses insurance, courtesy cars and breakdown cover. If you can manage without these, you should either ask the insurer to strip them out and provide a young driver car insurance quote which reflects the reduced level of cover or look for a policy that doesn't include them from the offset.

Monthly car insurance - good or bad?

With car insurance for young drivers being so expensive, it can be tempting to spread the cost of cover over 12 months rather than pay the whole premium in one go. But remember that many insurers charge more in total if you take the installment option - so 12 times the monthly payment is higher than the single price.

Boost security

Motorists who make it tricky for thieves to steal their vehicle often pay less for their car insurance. So fit your car with an approved alarm, immobilizer and tracking device. If you have a more expensive car, the insurer might insist that you install such devices as part of the deal.

It will also help if you can park “off road” overnight, preferably in a locked garage or at least in a driveway.

Enhance your driving skills
The Driving Standards Agency's Pass Plus course is aimed at newly qualified drivers and covers various aspects of motoring that are not covered by the standard driving test, including night and motorway driving. If you complete the course, you could earn a reduction of up to 35% on the cost of car insurance for young drivers. You can find more details on our pass plus insurance page.

The Institute of Advanced Motorists also runs driving courses to boost driving skills and so reduce the statistical likelihood of an accident.

Add 'named' drivers
You can reduce the cost of young driver car insurance by adding older, more experienced people to your policy as 'named' drivers. This reduces the cost because the insurer assumes that the car will be driven for some of the time by a 'safer' driver.

It is crucial, however, that the person who drives the car the most is listed as the main driver on the policy. Young drivers should never be tempted to seek lower insurance costs by getting a relative to insure a car that they then drive as the main driver. This is known as 'fronting' and counts as fraud.

If the insurer can show that fronting has occurred, it might refuse to pay any claims. Fronting can also lead to prosecution and anyone found guilty or associated with the crime could find it difficult to obtain affordable cover in the future.

Buy car insurance for young drivers online
It is advised that you shop around for young driver insurance quotes at renewal because insurers do not reward loyalty and do not offer their best prices to their existing customers, so automatically renewing each year is a bad idea. You can compare car insurance for young drivers provided by a wide range of insurance companies on worldinsuranceinfo-blog's price comparison website. It's quick, easy - and it's free.

Is telematics the solution?

In a bid to bring the cost of car insurance for young drivers down to a more affordable level, some insurance companies are promoting black box insurance - sometimes known as 'telematics insurance' policies.

With this kind of deal, your car is fitted with a device, probably around the size of a pack of playing cards, which records data on your driving style along with details of where and when you drive. You may be sent the device through the post along with simple instructions on how to locate it within your car.

The insurer is primarily interested in how you accelerate, brake and take corners. Also important is the distance you drive along with the roads you use and the times of day and night you travel in your car.

If you emerge from the analysis as a safe driver who avoids motorways and night-time driving, you may see a reduction in your premium after a three- or six-month review. If, however, you accelerate and brake aggressively, break speed limits and use high-risk routes when incidences of accidents are known to be high, your premium could rise.

If you modify your driving behavior you can improve your risk profile and obtain reduced premiums. The policies incorporate an online 'dashboard' that you can access to see how you are performing against the various parameters. This will give you an indication of areas that might reward attention.

All in all, black box insurance premiums differ from those on a conventional policy in that they are based on the drivers actual behaviors rather than just statistics. Not all young drivers are 'boy racers', so black box insurance is being seen as the ideal way to prove the insurers wrong and benefit from cheaper young driver car insurance quotes.
 Age specific guides to car insurance for young drivers
worldinsuranceinfo-blog is committed to help its customers find the cheapest premiums available to them, given their situation. Age is a very significant factor for insurers when it comes to comes calculating car insurance quotes, and when it comes to young drivers every single year can make a huge difference.

We have therefore completed a number of different young driver car insuranceguides, focusing on the cost of premiums for each different age group in order to make sure the advice you receive from us is as relevant as possible:

The gender issue addressed

On the 22nd December 2012, it became illegal for insurance companies to discriminate on the grounds of gender, which should see an end to the age old discrepancy between male and female car insurance premiums.

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7 Best ways of Cheap Car Insurance for Young Drivers

It's a fact that young drivers tend to have a hard time acquiring affordable insurance premiums. One of the biggest obstacles for young drivers is that they usually don't have enough time behind the wheel to prove to insurance companies that they are reliable, safe drivers. Insurance companies see young drivers as potentially high risk and as a result, may purposely ward them off with higher premiums, or offer better premiums to young drivers with better grades or a more stable income. These hurdles can be overcome, however. So listen up, young drivers of the world. Here are the steps to finding good, cheap insurance.

Understand whatinsurance companies can offer you. Car insurance coverage isn't one type fits all. Companies can offer you a variety of different levels of coverage. Generally speaking, car insurance can be broken down into three categories: liability, vehicle, and medical.

• Liability coverage. Your liability premium is the part of your insurance that covers the damage your vehicle may do to another vehicle in an accident, and is legally required in most states. It also covers medical care and lost wages for other drivers and passengers if you are found at fault in an accident. The size of your vehicle is a major factor in determining your liability premium. An SUV will likely do more damage to another vehicle on the road so the liability premium for this larger make and model will often be higher than a smaller make and model.
• Vehicle coverage. This coverage is broken down into two types: comprehensive coverage and collision coverage. Vehicle coverage is not state mandated, and will vary among insurers. It's a good idea to make sure your insurance plan includes vehicle coverage.
• Medical coverage. This premium is designed to cover any medical expenses for you, your passengers, and other drivers in the event of an accident. Medical coverage varies from company to company. It is a good idea to include this type of coverage in your insurance policy.

Consider the pros and the cons of the vehicle you already own or are interested in purchasing. The make and model of your vehicle will have a big impact on your insurance. Beyond your driving record (which is limited), your zip code, and the demographic of the drivers in your household, the type of car you drive is a major factor to getting a good price on insurance.

• Get a free quote based on the registration number of the vehicle you own or are interested in buying. Most major insurance companies have online rate generators at no extra charge. You can also complete self-quotes online via websites such as netquote or bankrate .

Be aware of the types of vehicles that will raise your insurance premium. Vehicles that have high horsepower, an expensive price tag, or are expensive to repair also tend to have high insurance premiums. For example, sports cars and luxury cars like Mercedes or Jaguars that require specialty parts, will likely have higher insurance premiums than a Volvo or a mini van.

Always check if the vehicle you own or may purchase is a previous write-off. This will increase the premium - the vehicle will likely have mechanical problems which will cause you to claim on your insurance.

Determine your area rating. Insurance companies usually use your area of residence or your zip code to help rate your premium. If you live in an area with high crime rates, your insurance will be affected, as the vehicle is at risk of being stolen or damaged.

Compare quotes from different companies. Once you have a clear idea of the insurability of your vehicle, and what acquiring insurance means for you as a driver, look up the insurance packages offered by major insurance companies to see what each one can offer you. The easiest way to compare rates is online. The DMV has a good online site for comparing rates.

• There is no proven "best time of year" to purchase car insurance. Rates aren't affected by the weather but rather on a number of factors including the number of insurers per a year, the number of accidents, the state where you live, etc. The best tactic is to check insurance rates on a regular basis throughout the year and always compare at least three quotes from three different insurance companies.

·         Keep your driving record as clean as possible. Most reputable insurance companies are leery of young drivers with speeding convictions or a high number of collisions. Though it's still possible for high risk drivers to acquire car insurance, they will likely be faced with higher premiums.

·         Always look for student or young driver discounts. Many companies will offer a good student auto insurance discount which rewards students financially for doing well in school. The discount can also continue until a year after the student has finished school. There are also discounts available for teen drivers based on completing and passing an approved driver's education course. There are several qualifications attached to a student driver discount. Find out more information about possible discounts here: http://www.dmv.org/insurance/good-student-auto-insurance-discounts.php

Consider a multi-car insurance plan. If there is more than one vehicle in your household, you may qualify for multi car insurance. Insurance companies such as Admiral and Direct Line offer policies which allow you to build up your own no claims bonus (NCB) if you take on multi car insurance. Attaching your vehicle to a policy with more experienced drivers, such as your parents, could also give you have a better chance at a good rate.

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