Cheap car insurance and younger drivers
The latest survey shows the car insurance rates for younger drivers rising sharply over the last five years. Taking just the last two years, drivers between 17 and 22 have seen an average increase of 80%. That means it's almost impossible for a younger driver to find comprehensive cover on any car under £4,000. That's usually far more than the cost of the car itself. So what's the problem? The answer lies in the number of preventable accidents caused by young drivers. It's not just that young men drive too fast. That's always been the case. It's the level of distraction caused by the mobile phones and other bits of technology that allow people to stay in touch by talk and messages. Put together the general lack of experience and the chances a driver will be texting or watching a music video on his iPhone, and you have irresponsible driving followed by sometimes very expensive crashes.
The answer, of course, is to persuade young drivers to drive more safely. The new black box systems to monitor driving behaviour are ideal for this. The telematics are linked through satellites to the offices of the insurer. The car insurance rates are calculated on the basis of the real-time data showing how young people drive, when they drive and where they drive. This means the premium rates can go up or down during the year depending on the quality of the driving. Except, of course, this is inconvenient from the young driver's point of view. They resent controls and the take-up has been quite low. This is surprising because companies like Young Marmalade offer comprehensive cover for around £2,500 for young men and £1,750 for young women. While this is not cheap car insurance, it's a lot more affordable than a conventional policy.
If this loss of privacy is too much, young drivers are forced into the specialist market. These are the companies that boast of their ability to find cheap car insurance for young drivers with no claims. You noticed the problem, of course. All young drivers are rewarded if they drive safely and make no claims. Most companies start offering better rates to those who have reached the age of 19 with at least one year claims free. The moment there's a claim, all insurance stays relatively expensive until at least the age of 25.
Cheap car insurance with pay-how-you-drive policies
New technology enables cheap car insurance through pay-how-you-drive policies. Are you prepared to sacrifice some privacy to get cheap car insurance cover?
read more
Cheap car insurance and sex discrimination
As a result of a European Court ruling, women will have to pay higher car insurance rates from December 2012. Cheap car insurance will be harder to find.
read more
- Here are some tips on how to find cheap car insurance. It all starts with a willingness to be flexible. Be prepared to change insurers to find the cheap car insurance offers
