Car Insurance -
Young drivers should shop around for car insurance
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More and more drivers are hitting the roads after passing their driving tests. A lot of these numbers comprise young drivers. Car insurance and young drivers are not exclusive terms, they depend very much on each other and there are many myths surrounding the relationship.
As a young driver who has recently passed your driving test you essentially have two options. The first is to have your parents include you as a named driver on their premiums.aspx" title="motor insurance">motor insurance policy at an additional cost. This option is generally used by young people who have just passed their test and do not own a car.
The second option is for young drivers who have recently purchased a car and are looking to insure it in their own name. Due to the fact that you are a young driver, the cost of motor insurance under your own name means that for the first few years your premium will be high reflecting the driving records of many young drivers who are not as careful as you. This is indicative of the general trend that most accidents on the road are committed by younger drivers, and so insurance companies are naturally going to class them as higher risk compared to someone who has been driving for 25 years, for instance.
If you have been shopping for car insurance and have been mystified at the higher quotes because of your age, bear in mind this is perfectly normal. Insurance companies keep records and the statistics show that young drivers have more accidents and suffer more from theft, fire and vandalism claims.
It is usually the timeframe of a first few years that can dent the pocket, but waiting a whole longer can really pay off in the quest for cheaper car insurance. For example, research from moneysupermarket.com found that an 18-year-old single male driver with a 10-year old Ford Fiesta in the Leeds LS18 postcode area would have to pay £3,167.69 for comprehensive car insurance annually. However, if the same driver waited three years and began driving aged 21 he would pay just £1,686.89 - that's a saving of nearly £1,500 a year, simply for being a few years older.
Unfortunately, young drivers pay the price for the reputation of their peers. Research shows that every day Britain's roads witness four fatalities or serious injuries as a result of accidents involving young people. It is estimated that the country's 18-year-olds alone cause 50 collisions a day - that's more than three times as many as drivers in their 50s.
Insurers calculate premiums on perceived risk - the higher the risk, the higher the premium - and the bad news for young drivers is that the odds are stacked against them. Insurers measure risks in different ways therefore it is important to shop around as premiums will vary.
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