Cutting the Cost of Young Driver's Premiums

According to statistics young drivers are more likely to have a road traffic accident and make a claim on their insurance. Due to these statistics car insurance quotes for people aged between 17 and 25 years vary an awful lot. In quite a few cases the insurance premium can actually cost more than the car that is been insured!

Useful tips to help reduce your insurance premiums:

To keep your premiums as low as possible, purchase a car from a low risk insurance group, for example a super mini. Before you actually buy the car get some quotes from as many different insurers as you can, just to be certain.

New drivers, who have gained extra experience, will have a reduction in premiums. The Driving Standards Agency runs courses called the Pass Plus scheme which costs around 90 pounds to take.

Some companies offer policies that are specifically for young drivers. An example of this is the insurer's More Than's policy called Drive Time. This offers cheaper premiums in exchange for not driving your car between the hours of 11 pm and 6am.

If your child is away at university and does not drive your car very often, it may be more financially beneficial to simply add them as a temporary driver to your motor insurance policy. You may be able to do this for short periods of time, rather than them taking out their own policy.

If you are buying a low value car third party cover may well be cheaper, but you should get a quote for comprehensive cover as well as third party. Do not always assume that comprehensive cover is always more expensive than third party, fire and theft as sometimes, if you shop around, this is not the case.

Finally, if you increase your excess then this will lower your premium. However, be cautious of doing this, as if you had an accident, would you be able to afford the excess if it was very high?

'Fronting'

If you add named drivers to the policy, particularly if they are older and more experienced, this may reduce the premium. However, be very careful of 'fronting'.

If you put your child on a policy, which is in your name, and they are classed as a named driver this will probably work out to be a lot cheaper. If, however, the child is not just an occasional driver and is actually the main driver of the vehicle, this practice is known in the industry as fronting and is against the law. As premiums are on the increase for young drivers, this practice is happening more often and insurance companies are increasingly tracing fronted policies.

If the insurance company does find out that you are doing this, then they may refuse to pay out in a case of an accident, which could prove to be very costly indeed. You, as the policyholder, may lose your No Claims Discount and the insurer may take out legal action against you for fraud.

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