Car insurance for the young drivers can be costly because buying car cover is most expensive between the ages of 17 and 40. The most pricey policies are issued to people under 25 years old because of the potential risk involved with insuring young, inexperienced drivers. So how can young people keep their car cover costs down? One of the most popular ways is no deposit policy. Also, read if this type of policy is suitable for you. Here are more tips that can actually help:
Young people buying their first car often purchase it based on desire rather than practicality. When you decide your first car, consider the age of the car, the size of the engine and how likely it is that the car will be stolen. Smaller cars with smaller engines are less costly to insure.
You can choose between third party coverage, third party fire and theft coverage and fully comprehensive coverage when you are buying any kind of insurance policy. There are advantages and disadvantages to each type of plan.
Basic third party coverage is the minimum vehicle insurance required by UK law. Failure to have this insurance can result in serious personal liability along with possible legal punishment that can include jail and fines. Third party car insurance covers the damages and injuries incurred by third parties but not the damage incurred to you.
You will be responsible for your medical expenses and the repair of your car if you are found to be at fault in an accident that causes damages. This coverage can save money for young drivers if they have an older car that is not too expensive and they have a health insurance policy to pay for their medical expenses. So, there would not be much lost in the event of an accident.
Third party coverage with fire and theft is the same as basic third party coverage except it pays for your car if it is stolen or set on fire. If you live, work or go to school in an area where car theft or damage is prevalent, this is useful coverage to have.
Finally, fully comprehensive coverage covers everyone involved in a car accident, regardless of who is at fault. This type of coverage is mandatory if you purchased a new car and financing it. This is because the lender wants reassurance that the collateral of the loan remains in good shape in case you default on the loan and they need to liquidate this asset.
Often provisional drivers find that insurance companies don’t even want to give a quote. Because inexperienced drivers pose a significant risk that the companies are unwilling to take on. Passing your test does not reduce your insurance premiums right away because a supervised learner driver is at the same statistical risk of an automobile accident as a driver who is newly qualified. Shopping around is the best way to get a low-cost young drivers car insurance policy in this situation.
The Pass Plus program is training designed for the new driver which has been set up by the Driving Standards Agency (DSA), top insurers and driving instruction organisations. Six practical lessons are taken to cover driving around town, weather conditions, night driving, rural driving, dual carriageway and the motorway experience to make young drivers safer. The benefit is that insurance companies offer discounts for completing the Pass Plus program.
Best of all, there is no test at the end of the program. This is because the Pass Plus instructor continually assesses skills throughout the course. To qualify for the Pass Plus Discounts, you need to have your license for less than a year, and it needs to be clean.
Are you obtaining decent points in your college? If not, study hard as young drivers who are meritorious will be eligible for good student discounts. Read here more.
Young drivers car insurance policies can offer discounts and advantages you won’t find with other insurance companies because they are specially geared for drivers under 25.
Of the many factors that insurance companies consider in setting premiums, one of the most important is your credit score. It may seem a little strange at first. But your credit score plays a role in the amount you pay for your car insurance.
It certainly helps if you have a good credit score for two reasons. The score indicates your ability to pay on-time, and it helps statistically in terms of setting your premium rates. Your credit score is a reflection of your ability to pay bills on-time which makes it easier to obtain loans. Regarding your car insurance, the higher your credit score, the more likely you are to pay your bills on-time which may mean a lower rate.
What does the stat say?
Plus, statistics show that people with good credit scores are less likely to get into an accident or file a claim with a car insurance company. While it may seem unconnected at first, it’s likely that those who have excellent credit scores and thus have cash-on-hand simply pay for small repairs themselves rather than risking a rise in their insurance rates.
The answer is yes, even if your credit score is awful you can still get car insurance. This is because car insurance is mandatory in the UK. This means even if your score is terrible the insurance companies are obliged to offer it to you.
However, you can expect to pay more for a bad credit score, so be prepared to see higher rates particularly if you are paying month-to-month. You can alleviate that to some extent if you pay all of your insurance in one single payment. Another alternative is searching for car insurance with no credit check in the worst scenario.
Credit scores run from 0 to 999; a good one is considered to be 881 at least by lenders. However, every insurance company will have their set of numbers based on the statistics that they use to set the premiums. Since credit scores are only part of the equation when it comes to setting rates, individual insurance companies will have their range of credit scores to consider.
This means that your credit score may be lower than 881 and still qualify as good for the insurance company in terms of setting rates.
Your credit score can be affected by the number of searches that are made within a particular time frame. Too many searches that result in rejections may negatively affect your score because it may appear that you are desperate.
When the insurance company runs a credit check, it will leave behind an indication that a search was made.
However, the search itself will be marked as such in terms of identification such as “insurance quote” or “ID check”. This will not affect your credit score as the purpose of the search is not for credit purposes, but merely identification of your credit score.
It takes some time to reach a good credit score. But the effort will be worth it in terms of receiving lower insurance rates and having stronger borrowing power. If you are looking for ways to reduce the amount paid to car insurance companies, consider raising your credit score as one method that offers extra benefits.