How Much Is Insurance for New Drivers? - Nxtgen Driving Academy

How Much Is Insurance for New Drivers?

All new drivers need to purchase a car insurance policy to avoid hefty pay-outs in the case of an incident. Purchasing an initial policy can be quite pricey and many drivers are put off by this. Therefore, it is helpful to look at what factors can influence car insurance cost and ways to lower it.

Why Is Insurance So Expensive for New Drivers?

The simple answer to why car insurance is expensive for new drivers is down to the insurance company’s risk assessment. Even after you have passed your test and received your licence, there is still the risk that you lack sufficient experience on the roads. The increased probability of new drivers being involved in an accident means they are faced with higher premiums.

How Does Age Affect the Cost?

When asking how much is insurance for new drivers, another factor to consider is the age of the driver. Policy holders between the ages of 18 and 20 tend to have higher claims than those between the ages of 21 and 85. As many new drivers fit into the 18-20 age group, the average premium tends to be much higher.

What Type of Insurance Do I Need?

There are three main types of insurance for new drivers:

  • Fully comprehensive: This insurance protects you, your car, and other drivers from paying out in full for any damage you cause. In addition, it covers medical expenses, repairs, fire damage and vehicle theft.
  • Third party, fire, and theft: This insurance covers the cost of repairing the other driver’s vehicle and property if you cause an accident. It will also cover you if your own car is stolen or damaged by fire.
  • Third party: This is the minimum required insurance level for new drivers. This insurance will only cover you for damages you cause to other vehicles and property.

How Can I Lower My Insurance Costs?

  • Choose a higher excess for your cover. Excess is the amount you are willing to pay towards repairs during a claim. The higher the excess, the lower the premium.
  • Share the policy with an older driver such as a parent or older relative. If they are an experienced driver, it can help push the cost of the policy down.
  • Choose a cheaper car for your first insurance cover. The more upmarket the car, the more you are likely to pay.
  • Make sure your car has good security. Fitting your car with an alarm or an immobiliser is a good example of a security feature. Also, make sure you store the car in a safe location when not in use, such as a garage.
  • Pay As You Go insurance can help reduce costs overall. This includes paying a monthly parked premium plus as little as 4p per mile on top.
  • Passing an advanced course such as a Pass Plus course can also show insurers that you have better experience on the road, which can lead to lower premiums.

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