Cheap car insurance for young people can be difficult to find. The feeling most of us have is that teenagers and those in their early twenties don’t know how to drive at less than 100 miles an hour! The companies providing the insurance have the same impression so tend to load the premium.
So how do you get around this? Here are five tips to help:
1) Think about the type of car you are going to insure. Until you build up your own no claims bonus, it would be a good idea to stick to a vehicle known for its safety rather than its speed. Think Ford or Nissan rather than a Porsche. The last thing the cost accessor wants to see is a teenager applying for insurance on a motor with an enhanced engine. Yes I know you want to look cool but it is a bit pointless if you are broke at the same time.
2) Raise the excess on the policy to as much as you can afford. The higher the amount you would have to pay in the event of an accident the lower your potential premium. There is a level at which this has less of an impact so get your broker to provide different quotations to check the savings you could make.
3) Consider going on your parent’s policy first but only if it is written in such a way that you get credit for good driving. A lot of plans are now segmented meaning that you can build up your own no-claims bonus. Some providers allow you to accumulate up to 60% reduction in the cost of the premium on an auto accident policy. The drawback is that to qualify, no claims can be made regardless of whether the accident was your fault or not. So if someone else hits your car and you claim against your own policy, you could lose this bonus. But all things considered it is a very useful way of obtaining a reduction in cost.
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