Young Driver Insurance: How To Save On Car Insurance For Young Or New Drivers
At the ripe old age of 20, I am one of those people that insurance companies think of as a boy racer, someone who is interested in driving fast and dangerous just to impress their mates. For me, nothing can be further from the truth but statistics don't lie. I do understand why young drivers will have to pay a premium for their car insurance due to the increased chance of accidents however not all young drivers are boy racers so why do we all have to pay a premium? I passed my driving test a couple of years ago and I hope to improve upon my first two years premiums of £1,700 a year. YES that's £1,700 a year for my first year's driving and last year cost me £1,400. This would be my third year driving so hopefully with the right research I can cut down my premium considerably as it is currently a huge chunk of my car expenses every year.
Where to look for young driver insurance?
First things first, I need a little bit of information about the car I will be insuring so I can start getting some quotes in from online price comparison websites. My trusty car (whose name is 'yanni') is a Toyota Yaris Verso, which is like a normal Yaris but much bigger. My Yaris Verso is now worth about £8k on the open market and I do around 12,000 miles per year to and from work. The first port of call for any finance job will be the price comparison engines so let's check out MoneySupermarket and GoCompare.
So how did the first round go? Well a lot better than the year before I can tell you that, but still quite scary numbers. The cheapest quote I found on MoneySupermarket was £1,163.55 with an excess of £450. This was by far the best offer I received but if I wanted to reduce the excess I am prepared to pay I would be looking in the region of £2,293 just to reduce it by £150. Hastings Direct was the company with the best quote but let's look at GoCompare to see if anything else crops up. Using the same details from MoneySupermarket I am afraid GoComapre didn't improve my initial quote. The lowest premium quoted was £1,247 which is nearly £100 more expensive through than MoneySupermarket.com, even though it was through the same insurer, Hastings Direct.
So far, Hastings Direct seems to be the best place for young driver insurance but let's see what else is out there. After searching for 'Young Driver Insurance' I was bombarded by several hundred thousand results but lets check out the top few to see if we can better our offer from MoneySupermarket.
Coverbox says it is designed to offer cheap young drivers car insurance premiums but upon further inspection it was nearly £300 more expensive than Hastings through MoneySupermarket.com however the excess was £300 cheaper which basically works out the same if you ever do have a crash. For reference the company with the lowest quote through Coverbox was The Co-Operative Insurance Group. There were a number of other websites designed for young drivers insurance however upon closer inspection most of them were taking price comparison technology so it is no different to GoCompare and MoneySupermarket.
Give the insurance company a call?
The best quote we have so far is from Hastings Direct through MoneySupermarket, but what happens if I try and get a quote from them directly? I'll tell you what happens, they put another £200 on my premium which now costs £1,380 per year. This can't be right, let me give them a call and see if I can do something about that quote. After talking to a guy called Mark at Hastings, I told him my cheapest quote so far was £1,160 and asked him whether he can beat that. After 3 minutes away he came back to me with £1,100 if I purchase the insurance today. In response I simply said thank you very much, where do I sign?
If this article has taught me anything it is to do your research. Admittedly, MoneySupermarket was my first port of call and did provide the cheapest quote however without speaking to the insurers directly, I would never have got a further £60 off my premium so it still helps to talk to your insurance company before you accept an online quote.
Best insurance companies for young drivers in 2020?
The companies listed below have policies and tools aimed specifically at young drivers:
1. Direct Line
3. Churchill Car Insurance
5. Hastings Direct
The table is based on comprehensiveness of each policy and prices. Be sure to compare between providers and as mentioned above - call the company to get a better price.