Insurance for young drivers: How to reduce the cost
Add your comment.
Dom Littlewood has been looking at the issue of 'fronting' - taking out car insurance on behalf of someone else.
With car insurance for young people costing so much these days, many parents are tempted to cut the cost by insuring a car in their name, even though their child is the main driver. According to insurer Direct Line, about 2 and a half million drivers have done it. But unless you can prove you drive the car more than your child, it's illegal. If you're found out, your claim could be invalid and your youngster could get 6 points on their licence.
Insurers say that premiums are high because young drivers are more than twice as likely to make an insurance claim as older drivers - and the average value of each claim is three times greater. They point out that premiums will get cheaper with age and increased driving experience.
Top tips - ways to help reduce the premiums for a young driver
• Take the Pass Plus course of post driving test lessons. A number of insurers offer premium discounts / accelerated no claim bonus build up if you do.
• See if you can increase the level of any voluntary excess on the policy. A larger excess may mean a lower premium but bear in mind that if you may have to pay out if do have a crash. Many insurance companies will add compulsory excess onto younger driver's policies and this could all add up if your voluntary excess is high.
• A small number of companies, will offer reduced premiums if young drivers undertake to limit the times of day they use the car - i.e. they do not drive at night. 50 percent of all accidents by young drivers happen at night (from ABI).
• Shop around to get the best deal - even for young drivers the premiums will vary. Ring the company direct to discuss your quote and to ask if there are ways you can reduce the premium. It's worth contacting a broker who could access a wider range of insurers (not just the main ones), some of which may offer cheaper insurance for younger drivers.
• Find out what insurance bracket your car is in and consider buying a lower powered car in a cheaper insurance brackets
• Including an older named driver on a young person's policy may help bring down the cost.