Running A Car - Car insurance for young drivers

Car insurance premiums have soared by an average of 30% over the past year, with young drivers the hardest hit.

Many new drivers to face insurance premiums that outstrip their car's value. Young men face the highest costs of all.

The reason young drivers pay so much is because statistics show they're most likely to make a claim. Insurers price against risk, so younger drivers will be hit hard.

However, young drivers can take action to cut the cost. Here are some dos and don'ts to help you slash your insurance premium.

DO
Shop around and compare prices. The quickest and easiest way to do this is through an online comparison site. Simply fill in your details and the comparison site will provide easy-to-read quotes from multiple insurers.

According to independent research, drivers who use the comparison site MoneySupermarket save an average of £333 on the cost of their premium.

Consider fully comprehensive cover. Many young drivers opt for Third Party (TP) insurance or Third Party, Fire and Theft (TPFT) cover. They assume the lower level of cover will mean premiums cost less, too. This isn't always the case.

The reason stems back to claims data and the fact insurers price for risk. Young drivers are more likely to make a claim on their insurance, and because so many opt for TP or TPFT cover, insurers see a larger number of claims on these types of policy and increase the price accordingly.

Buy a sensible car. All cars are allocated an insurance group – and the lower the group, the lower the premium. So, it's cheaper to insure a Fiat Punto than an Audi TT. Find car insurance groups on the Association of British Insurers' website.

Think about your no-claims discount. Rather than sitting on a parent's policy, insuring your own vehicle is often worth a few years of high premium pain for the no-claims discount (NCD) you'll accrue. Your NCD increases every year you don't make a claim on your insurance, which can significantly reduce costs.

Some insurers offer accelerator policies that let you to earn one year's NCD in 10 months, so these are worth investigating.

Take the Driving Standards Agency's Pass Plus course. This gives extra tuition on night, motorway and inner-city driving. The course is made up of six modules and takes at least six hours. There's a fee of about £150, but drivers who successfully complete the course can get discounts on their car insurance of up to 35%.

DON'T
Drive without insurance. The rising cost of premiums, particularly for younger drivers, means more people are driving without insurance. Don't do it! It's illegal and not worth the risk.

Insure your car in a parent's name. It can be tempting to add yourself as a named driver on a parent's policy, because this will often reduce the fee. However, if you're the main driver of the car, it's also against the law – and could result in claims being turned down.

Of course, this only applies if you are the main driver of a vehicle. If you don't have your own car, but occasionally use your mum or dad's then it is fine to be a named driver on their policy.

Modify your car. Insurers don't like boy – or girl – racers and modifications such as turbos, rally lights and nitrous-oxide kits will send your premium soaring.

This article has been researched and written by whatcar.com's car insurance partner, MoneySupermarket