Insurance - Car insurance for young drivers
Car insurance for young drivers is one of the most costly expenses for any new license holders, and is major money-spinner for all insurance companies. An industry dependant on statistics and figures, there is no stone left unturned by insurers when formulating a quote. Unfortunately for all those prospective teenage Lewis Hamilton's, research shows that 17-25 year olds are involved in more accidents than any other age group. Accompany this with no no-claims bonuses or any driving experience, and insuring a young motorist becomes a very expensive prospect indeed.
For many of you, purchasing insurance will probably cost more than actually buying a car, so therefore the same care and research needs to be taken in the process. By gathering all the information that follows you be in a much better position to approach the market.
Everyone knows that insurance is a legal requirement, however the type of insurance you obtain is completely up to you. The majority of young drivers opt for what is called 'third party, fire and theft' insurance. This covers the owner against any damage that is caused to another vehicle as well as protection against thieves and a burst if flames. Even though this offers no protection to the driver's vehicle in the event of an accident, it is increasingly popular due to its low cost. If you are in possession of what is affectionately coined 'a banger' then this is probably the right choice for you. However, if you are lucky enough to be sat behind the wheel of vehicle worth more than a full tank of petrol, then it might be worth considering fully comprehensive insurance. Fully Comp, as it is more frequently known, is the cover of all vehicles in the event of a collision. The most expensive form of insurance, this ensures that your vehicle is covered from loss if you damage it. The third form of insurance, is the least frequently used, which is third party. This is the most primitive form of insurance, simply covering the damage caused to another road user. This is rarely sought after as it offers no protection whatsoever for the owners vehicle and can be disastrous in the event of a theft or fire.
One thing that dramatically affects the premium of any driver is the classification group that their car falls into. Another factor that can impact the cost of car insurance for young drivers is location. Insurance companies are all about risk management, so every facet about your life is analysed to see how dangerous you are as a client. If you unfortunate enough to be placed in an area that is notorious for car theft, then this will not go unnoticed on the insurance company. On the flip side, if you reside in a sleepy Gloucestershire village, where the loss of the vicar's bicycle makes front-page news, then you are likely to receive a cut in premium.
The price of car insurance for young drivers is generally some of the highest on the market, with most third party, fire and theft premiums averaging out at around the £1000 mark. However, fear not, because there are ways around this. For starters, keeping your vehicle in a locked garage or private road overnight will take this figure down significantly, as will the restraint from kitting out your motor with boy-racer accessories such as alloy wheels or tinted windows. Car insurance for young drivers can be a tricky business, but If you are stringent enough, you should be able to negotiate a fee for a 1.1 litre hatchback for around £750.