Car insurance for young drivers - things you need to know

 Car insurance for young drivers - things you need to know

Learning to drive is a rite of passage for many, and passing the test is a significant milestone that deserves celebration. However, many find these celebrations short-lived once they come to buy their first car insurance.

Car insurance for young drivers can be difficult to secure, and car insurance for teenagers even more so. This blog explores the facts behind these scary numbers and why car insurance can also be a significant expense for new drivers, regardless of age.

CAR INSURANCE FOR YOUTH YOUNG DRIVERS: The Facts

So you've excitedly reached the legal age to learn to drive, learned well and passed the all important test. You even have your first car, congratulations! But you just had your first accident, luckily just out of enthusiasm because you started getting car insurance quotes. And they are heavenly! Why? Let's break it down……

  • You are young and unattractive. Before you get upset, don't panic; we talk about it in terms of risk! Car insurance for teenagers is notoriously expensive because you come with a record even if you don't have one. Confused? Let's get this straight. Insurance is about risk and data, and that combination isn't the most desirable when you're a young, newly qualified driver. Data shows that drivers under the age of 25 are the most likely to crash than their older counterparts.
  • Time is not on your side. One of the biggest benefits of being an older driver is that you've had the chance to build up a clean driving record, and this can equate to a no-claims bonus reward. As a young driver, you simply won't be on the road long enough to gain experience.
  • Patience is a virtue. Unfortunately, in the world of car insurance for young drivers, experience is one of the biggest and best factors in lowering those premiums. I'm sorry, but it's about sitting tight, driving safe and being patient.

CAR INSURANCE FOR NEW DRIVERS: The Facts

So what is the difference between car insurance for new drivers, car insurance for young drivers and car insurance for teenagers. You might think they are the same, but trust us, there are differences. Read on to find out what we mean......

  • Experience and exposure are everything. Skills are acquired through experience and being a novice driver means you lack the real experience of being on the road and exposed to a range of different situations.
  • Confidence and competence. As you gain experience, you'll also gain much-needed skills that will boost your competence and confidence. Right now you are unknown to the insurer and this is a high risk factor for them, so you can expect to pay a higher price in the first few years of driving.
  • Bonus benefits need to be built up. Driving history is the key to lowering these premiums, and the key is to create a no-claims bonus by being claims-free. As a new driver, a lack of history doesn't penalize you, but it does mean you can't unlock all the discounts that may be available.
  • Lack of loyalty rewards. Since your auto insurance is new, you won't go through renewal yet. Companies value their loyal customers and recognize this in the form of rewards, so a few years down the road will help secure those savings.

So, whether you are a teenager, young or inexperienced driver, you have a long way to go, but with patience, time and careful driving, you can start to enjoy these price reductions too!

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