Car insurance tips for students

Car insurance tips for students.

Post By: Insurance Top Stories

Car insurance prices are continuing to rise, with the average cost of fully comprehensive cover now standing at £700 a year. However, things are even worse for students, with research by moneysupermarket.com suggesting that a newly qualified 17 year old male driver can expect to pay £2,841 for car insurance, while a 17 year old female can expect to pay £1,600.

Why the high price?
Car insurance prices are so high for young drivers due to them being considered more likely to cause an accident, with the Association of British Insurers (ABI) claiming that 18 year old drivers are the cause of 50 collisions in the UK every single day. Male students are more heavily affected due to statistics from the Home Office, which suggest that men are nine times more likely than women to cause a motor offence.

This may seem like a unfair generalisation, and quite frankly it is. However, there is nothing that can be done about it and students (particularly male students) are considered a far greater risk.

How can I keep insurance affordable?
Car insurance can actually be more expensive than the actual price of buying your car, so in order to save money you should really be considering car insurance before even purchasing the vehicle. With insurers generalising people, they believe that drivers with large engines and modifications are more likely to have an accident. Therefore, they frankly don’t want to take on a young driver with both of these things and will try and price you out of the market. So, it may seem less exciting, but keep your car small and conventional.

Once you’ve bought your car you should then consider the type of policy you are going to take out. The three options available are third party, third party fire and theft and comprehensive. Comprehensive is obviously the best option but it is also the most expensive, with Money Supermarket finding a best offer for an 18 year old student to insure himself on a Ford Fiesta Zetec of £3,167. However, the same student on the same car with third party, fire and theft will have to pay just £1,964. This won’t cover damage to your own vehicle in the event of an accident, so whether it is worth it or not is really the decision of the driver based on how much their vehicle is worth.

Other tips for students when looking for insurance are:

1. Buy online and shop around- Many car insurance firms offer much cheaper deals online than they do in store or over the phone. This also makes it easier to shop around, with the ABI stating that drivers can save as much as 35% on car insurance by comparing as few as five quotes. 
2. Consider a rapid bonus scheme- Some insurers will offer a rapid bonus scheme, where you can earn one year of no claims discount in 9-10 months which will substantially reduce the price of your next policy. 
3. Keep your car safe and secure- When students leave home and go to university, they often leave their cars parked in areas where crime rates are high, which will increase the cost of insurance. Therefore, to reduce the cost try and keep you car on a driveway or in a garage if possible. However, remember not to lie to your insurer, because if your car is damaged when parked on the road it could render any insurance claims void.  Also consider fitting an approved alarm and/or immobiliser to your vehicle if it doesn’t already have one, as this is another good way to reduce the price of your policy.
4. Pay a larger excess- Paying a higher excess will reduce the price of car insurance. However, be careful not to offer to pay more than you can afford in the event of an accident, with the average excess being £250.
5. Pay annually- If you pay monthly, you will be subject to interest charges, so if you can pay it all in one go.
6. Reduce your mileage- Reducing the number of miles you travel will reduce the price of your policy, as your chances of having an accident are obviously reduced. However, don’t go over your mileage allocation, as your insurer will likely refuse to pay up for any claim after you have gone over it. 
7. Add an older additional driver- Adding an older person to your policy can save young drivers hundreds. However, don’t ask a parent to be the main driver covered, as this is illegal and an insurance company will refuse to pay for any claims if you are caught.
8. Pass plus- Doing a pass plus course will cost £100, but can cut 35% off your insurance, which amounts to a saving of over £900 for the average male student driver.

Summary
Driving for the first time is an incredibly exciting and liberating experience but the cost of insurance can often make it a nightmare. It doesn’t need to be like this, and following these tips from moneysupermarket.com, who have had extensive experience of dealing with insurers, can dramatically reduce the price of your insurance policy and make driving for students affordable again.