New schemes could half insurance for young drivers

Younger drivers could cut the cost of their car insurance in half thanks to new and innovative schemes introduced by some insurers. Combined with more sophisticated shopping techniques, young drivers could make considerable savings.

Insuresupermarket. com, a price comparison website, found that novel approaches to car insurance could result in teenagers paying around £784 for their insurance, compared with an average of £1,605. Considered a high-risk category by insures, many teenagers find themselves paying extremely high premiums due to their age and lack of driving experience, so these savings will be welcome news for the UK’s young drivers.

“More and more insurers are targeting younger drivers with new innovative products and features, which can significantly reduce premiums,” said Richard Mason, insuresupermarket.com director.

He went on to say, “Norwich Union’s £1,000 excess is one such example – although it may seem like a huge amount, our research has shown that making a claim on your insurance can add upwards of £900 to your premiums over the time it takes to claw back your no claims discount. This is likely to be much more for younger drivers so it is well worth considering the higher excess.

Recent insurance industry figures show that with more young drivers on the road than ever before, insurers are targeting young drivers with more attractive and competitive policies, good news for Britain’s fiscally challenged youth.

Norwich Union have also introduced a new scheme called a “pay as you drive” policy, which enables 18-21 year olds to be levied according to how often they use their car, as well as where and when – with use during the more dangerous times of the day, such as morning/evening rush hour, costing more per mile.

Insuresupermarket.com also make the point that combined with the new schemes, taking out less cover allows younger drivers purchase cover and get on the road more cheaply. Taking out third party cover could save a young driver a considerable sum of money with cover costing around ten per cent less than fully comprehensive insurance.

The following tips could prove useful for young and older drivers alike, when shopping around for motor insurance:

· Consider adding a parent to your policy as this can reduce premiums by around 10-15 per cent.
· Consider a higher than standard excess in your policy, this could lower your premium
· Most insures will discount your premium if you add extra security measures to your vehicle such as Thatcham approved alarms.
·Shop around. The Association of British Insurers states that the average customer can save 35 per cent on their premium by obtaining quotes from several insures. Remember to try several insurers and not just two or three. The more you try the bigger the savings.
·Use a garage for storage of your vehicle if you have one as this reduces the chances of theft and therefore will lower you premium

19/5/05