For Young Drivers, insurance premiums and the costs associated with their first car often seem very high. Higher insurance premiums are often due to past statistics such as, ‘one in four new drivers will have an accident within the first two years of driving’. There are however, some sensible ways to reduce the costs. Here at Safely Insured, we want to bring to you the solutions available.

Young Drivers

According to recent research conducted by comparethemarket.com, the average cost of getting a 17 to 24 year old on the road is £4,750 (in their first year of driving). Following on from this, the second year and subsequent years after that can be expected to be around £2,200. The main costs are said to be associated with insurance, the car, and the fuel; the remainder of the costs are said to be divided between road tax, MOT, and breakdown cover.

Use Comparethemarket’s Young Drivers Tool to find out how much driving could cost you.

So, what are your options?

In order to reduce costs, there are some simple steps to follow:

1. Pick a sensible first car
2. Choose a Telematics Insurance policy as opposed to a standard car insurance policy
3. Drive sensibly

Step 1: Picking a sensible first car

You’ll want a car that insurance companies will favour. The car should have a low engine size, say a 1.4 litre or less (preferably a 1.2 litre), and have a high safety rating, such as NCAP 5*.

We would recommend the following cars for Young Drivers:

1. Ford Fiesta
2. Vauxhall Corsa
3. Renault Clio

We wrote a full article called Recommended Cars for New Drivers which details the specifics of what you should consider when buying your first car.

Step 2: Telematics Insurance

A Telematics Insurance policy (often referred to as Black Box Car Insurance) is designed to help a driver prove that they are a good driver and, in effect, reward them with reduced premiums upon renewal.

The policy involves a black box device being fitted to the vehicle which then reports back to the insurer on your driving habits.

The box records data such as: your speed, your location, the times of day you drive and your braking levels. This data provides a good indication to the insurer on how much of a risk you are (whether it be a high risk or low risk). This type of technology is also great for you to be able to measure your driving habits and improve where necessary, as the data will be accessible by you (the insured) also.

In an attempt to further reduce costs, you can also restrict the amount of miles you do annually. More often than not, the lower the mileage, the lower the premium.

Now it has to be said that you may not always save costs initially on the purchase of your Telematics Policy. After your first year of driving and when it comes to your renewal, however, providing you have driven well, you should expect to see a substantial reduction in your premium.

To help you understand all aspects of the insurance cover available from when you start learning through to once you’ve passed your driving test, we have created a Young & Learner Drivers Insurance Guide which is available to download from our website.

For more information on Young Drivers Insurance in reference to Telematics or the insurance guide, visit our Young Drivers Insurance webpage.

Step 3: Driving sensibly

Regardless of whether you purchase a Telematics Insurance policy or not you should always drive sensibly. There are numerous things to consider when out on the road, such as:

• The speed limit
• Your manoeuvres
• Your mirror checks
• Changing lanes safely
• Your braking levels
• Your distance between other cars
• Obstructions and hazard perception
• Other vehicle drivers

The more sensibly you drive, the less likely you are to have an accident. Ensuring you are doing the speed limit and leaving enough gap between you and other cars is essential. The more time you have to react to a situation, the less likely it is to result in a serious accident.

Also, your Telematics data report will benefit from good driving practice.

Of course, there will always be limiting factors (such as your postcode) which will always play a part in an insurance quote but despite this, there will always be ways in which you can reduce your insurance premium. If you follow the three simple steps above, you will be well on your way to achieving this in the future.

If you require any further information in relation to Young Drivers Insurance, visit the Safely Insured website.