Car Insurance For New Drivers Over 25 – Young drivers have been hit hardest by higher car insurance costs, with some facing premiums of almost £3,000, according to the figures.
Price comparison company Confused.com said 17-20 year olds on average saw their insurance rise by more than £1,000 compared to the same time last year.
Car Insurance For New Drivers Over 25
Steve Dukes, chief executive of Confused.com, told Radio 4’s Today programme: “The frequency of claims has increased in the last two years since the pandemic, but so has their cost.
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“The cost of used cars is higher than it has been, the cost of parts, the cost of labor to do repairs — all of that is passed on to consumers.”
Prices for used cars – the usual first car for a newly qualified young driver – have been volatile for several months following the outbreak of the Covid pandemic. Demand for used cars has increased as production of new vehicles has fallen due to a global shortage of computer chips and other materials needed for production.
In March 2022, price growth in the used car market peaked at 31%, according to the Office for National Statistics. Since then it has dropped significantly.
But the new drivers faced the steepest jump. For 17-year-olds, premiums rose by an average of £1,423, to £2,877. For 18-year-old drivers, the average policy price was £3,162.
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The data is calculated based on an average of the five best quotes obtained on Confused.com, rather than the prices actually paid for the policies.
Dukes said there were ways to lower insurance premiums. “Where they can legitimately share the car with an older, more experienced driver and adding that person as a designated driver can make a really big impact and bring the price down by hundreds of pounds, it’s really worth it is watched,” he said. .
Mr Dukes also suggested young drivers should explore using IT, third-party insurance or pay-as-you-drive insurance, where their road behavior is shared with their primary insurance provider or casualty policies. the driver.
But he said with prices rising for 17-20-year-olds, many young drivers would wonder if they could afford to drive at all.
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“The industry needs to be careful about pushing young drivers to use other modes of transport and there is a real risk when prices are too high,” he said.
The Association of British Insurers (ABI) said that although car insurance can be expensive, there are ways to cut costs. , external
She added it was important motorists never drive without cover and urged anyone struggling with the costs to speak to their insurers.
However, the ABI said that insurance is always risk-based and data shows that the average cost and claim rate are higher for young drivers, which can affect insurance premiums.
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According to the ABI’s own analysis of 28 million policies, motorist insurance costs rose by an average of £561 between July and September, up 29% compared to the same time in 2022.
The association said the figures were based on the price customers paid for the cover, not what they were quoted.
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The Best Cheap Car Insurance For New Drivers (2024)
If you’re buying your first car or want to borrow someone else’s car, if you’ve just passed your practical driving test, you need car insurance.
Unfortunately, new driver insurance can be very expensive due to your lack of driving experience. But having cover in your name will enable you to build up a No Claims Bonus (NCB), which could mean access to cheap car insurance in the future.
New Driver Insurance is car insurance suitable for people who have recently passed their driving test. New drivers can apply for standard car insurance or specialist products designed for young or new drivers, such as a telematics policy or paid coverage.
No matter what type of car insurance you choose, it’s important to understand the different levels of coverage and what each includes:
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Finding cheap insurance for new drivers can be difficult. This is because new or young drivers are statistically more likely to be involved in an accident due to their lack of driving experience.
However, it drops by 57 per cent to £3,329.94 when the same driver turns 18 and has a year’s driving under their belt.
The more experience you gain, the lower your car insurance premium will be – and it gets cheaper if you build up a no-claims bonus at the same time.
How much young drivers pay for car insurance depends on a variety of factors, with age near the top of the list. For example, the cost of cover for a young driver drops from £7,813.51 for a 17-year-old to £1,615.73 for a 27-year-old.
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Some cars are more expensive to insure than others, so it’s worth researching deals on different vehicles before buying a used or new car. (Adobe)
We’ve put together our best tips on how to try to reduce the cost of your cover and get the cheapest car insurance for young drivers available.
After you’ve had your private car insurance for a year, your insurer will send you a renewal offer – but you don’t have to accept it. In fact, we highly recommend not automatically renewing your car insurance if you can help it. Otherwise, compare rates elsewhere and make sure you have a National Bank (NCB) if your account is still intact.
It’s best to buy your car insurance three or four weeks before it’s up for renewal – studies show drivers who put it off until the day their insurance is due for renewal can end up paying more.
New Car Insurance
Use a price comparison site to compare new driver’s car insurance rates from different insurance companies. Insurance premiums can vary widely for new drivers, with some insurers keen to buy these customers while others price themselves significantly out of the market.
When buying your first car, check which insurance group your intended purchase falls into. All cars are categorized into insurance groups from one to 50 – the more powerful and expensive your car, the higher the insurance group and the more you pay. Cars such as the Fiat Panda, Ford Ka Plus or Nissan Micra fall into Group 1 and are also the cheapest to insure. If an older or used car is purchased, the insurance premium may be lower due to the lower value of the car itself. However, this will not apply universally.
The deductible on your policy is the amount you have to pay for each claim. All insurance policies have a mandatory deductible; Adding a voluntary excess can also reduce your premium, but make sure it’s an amount you can easily afford in the event of a claim.
If you can afford it, it is better to pay your car insurance premium once a year. Most insurance companies offer the option to pay monthly, but this will be more expensive.
Young Driver Car Insurance
As a new driver, you can add someone with more driving experience as a named driver to reduce the cost of cover. This is because it signals to suppliers that you, as a more dangerous driver, will not always be behind the wheel.
We’ve found that you can save an average of 10.24 per cent on your cover by adding an older named driver.
The biggest savings went to a 19-year-old young driver, who saved 17.61 percent by adding a parent as a named driver.
You should determine the estimated annual mileage when purchasing car insurance. This number can be difficult to estimate as a new driver, but remember that lower mileage means less chance of an accident, and therefore lower insurance premiums.
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Insurance companies don’t like modifications, such as spoilers and tinted windows – these changes to your car will result in higher premiums.
Having an immobilizer or tracking device on your car can lower your insurance premium as there is less chance of it being stolen and a higher chance of recovery if it does. Dash cameras can be useful in proving what happened in the event of an accident.
It’s important for new drivers to collect a no claims bonus – you can do this by driving carefully and not making any claims on your insurance. National Bank of Commerce guarantees a discount on your insurance premium when it comes time to renew, but remember that there are several factors that affect the cost. Keeping a clean record will also help, as speeding and excessive driving means paying more for insurance.
This is an advanced driving course that teaches drivers to improve their skills and drive safer. Once you have completed Pass Plus and received your Pass Plus certification, you will be eligible for a discount from some insurance companies.
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New driver insurance usually costs more than learner driver insurance. Teacher