There is no rush quite like passing your driving test.
After lots of practice (and for some multiple tests!), it is time to take to the road and embrace your newfound freedom. However, before you can get behind the wheel, you need to secure some car insurance.
Unfortunately, car insurance after you pass can be extremely expensive. This is because you lack experience and therefore companies penalise you for this.
There are a few ways to find cheap car insurance for new drivers, and this blog will explore these and some extra tips for keeping costs down.
Let’s start from the beginning. Why do you need car insurance?
Car insurance is mandatory if you drive your vehicle on UK roads and in public places. It isn’t needed if your car is declared off the road (also known as SORN).
If you don’t insure your car and you are caught, you may be fined, have your vehicle wheel-clamped or be taken to court and receive a maximum fine of £1,000.
Car insurance is not just to tick off legal boxes or avoid fines though. It also provides financial protection against accident liability, theft, fire damage and other risks. Perhaps most importantly, it also gives you peace of mind, which is priceless.
Looking for car insurance for young drivers can be costly. However, there are some brands to note and tips to use to keep costs low.
For example, you can opt for a “Black Box” (Telematics) insurance.
This insurance package includes a black box device that you install directly into your car. The box tracks your driving behaviour and you can track your performance via an app on your phone.
The safer you drive, the lower your insurance costs. So, keep your speed down!
The reason new drivers face high insurance is due to their lack of experience on the road. Even if they passed the test with flying colours, they need to prove their skills in real life before they can access low premiums.
Adding an experienced driver to the car insurance policy can reduce the cost, as the insurer sees this driver as less risky.
Just make sure you only list someone who would actually drive your car too, otherwise it is an illegal listing.
Sometimes, insurance premiums are calculated using your estimated mileage.
A higher mileage increases the risk of an accident, which means it will cost more to insure. Lowering your mileage can reduce your insurance costs by quite a bit.
However, don’t make up a random number. Make an informed and realistic estimate based on your daily mileage or commuting needs.
Hopefully, this guide has helped you understand how to save on car insurance as a new driver. We have gathered a few final tips to help you get the best deal.
Follow these tips and you will be driving for less in no time.
What Are National Insurance Payments?
5 Tips on How to Manage Your Money This Winter
Everything you need to know about Credit Lines
Learn more about personal finances and creating healthy money habits on the Polar Credit Info Hub.