New and young drivers can save up to a fifth off their yearly car insurance cost, simply by shopping around. According to research from Compare the Market, drivers aged 17-24 could chop an average of £263 off their notoriously high premiums, making new driving costs that little bit more affordable.
It’s well known that the youngest (and often the poorest) drivers face an uphill climb when it comes to financially supporting themselves on the road, with insurance costs being one of the main culprits for financial woes. Such news about potential savings will be very much welcome to new drivers, with premiums finally beginning to drop after years of increase.
Why Shop Around?
Compare the Market’s research indicates that the average premium for 17-24-year-old drivers was £1,281 at the start of 2019. A daunting figure, but young drivers can take solace in the number being 3.3% down from six months prior, and 5% down from the start of 2018.
Why are premiums dropping after years of increase? Higher competition in the car cover market has meant insurers offering more competitive rates to attract and retain customers. However, this doesn’t mean drivers should have faith that their current provider is offering the best deal possible.
Often, unless pushed, providers will offer relatively high quotes on renewals, which is where shopping around has made an impact. By doing their research, the 17-24 bracket saw the £1,281 average drop to £1,018, with providers forced to match better offers from their competitors.
With a number of factors at play in fluctuating insurance costs, young drivers especially should never rest easy on their current premium.
What Reduces Price?
Of course, shopping around isn’t the only way for young drivers to find discounts on their premiums. Much of the cost depends on the type of car being driven, as well as the sort of cover drivers are agreeing to. Obviously, the smaller the car, the better, but there are plenty of other factors playing their part as well.
The rise of telematics, otherwise known as the ‘black box’, has played a huge factor in reducing premiums across all age brackets, but particularly for young and new drivers. By tracking key measurables like speed, acceleration, braking and cornering, the black box is encouraging better driving behaviours in younger people, which in turn is offering a drop in coverage costs for safer drivers. Dashcams are another rising technology that have served a similar purpose.
Less experienced drivers can also modify their premiums to incorporate a second, more experienced driver. By adding a veteran driver, often a parent, premiums can drop by hundreds. Likewise, those who can afford to pay their full premium in a lump sum rather than in monthly instalments will avoid the added interest that comes with breaking down the payment.
There’s no denying that car insurance still remains one of the biggest financial concerns for 17-24-year-olds looking to get on the roads, however recent patterns suggest the tide is at least slightly turning when it comes to overall cost. By doing thorough research and selecting the right sort of premium, young drivers can enjoy savings of hundreds each year they come to renew their policy.