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Your Money > Insurance Articles > Young drivers - why it's not worth cutting corners
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By Sarah Modlock
Many years ago when I got my first car I opted for third party insurance because fully comp would have cost me the value of the car. But the saving I made on the premium was completely dwarfed by the money I had to shell out on repairs when I had my first - and only - fender bender. Not to mention the added cost of towing and storing the damaged car, since no one had mentioned the need for roadside recovery. It is easy to see why car insurance quotes for young drivers cause them - and their parents - to stop and consider other options. The sums involved are almost punitive, weighted as they are against a group of drivers whose inexperience and potential to speed are key factors in their contribution to car accidents. Sad stats According to the Association of British Insurers, although there was an 8% decline in the overall number of people killed on Britain's roads in 2004, there was a 12% increase in the number of 16 to 19 year-old drivers and passengers killed in the same year. Pass Plus says that one in five young drivers is expected to be involved in an accident during their first year of driving. Often parents will start offspring with the loan of mum's car, adding them as a named driver on the parent's insurance. But although some insurers are starting to take safe driving on another policy into account, many still start a new applicant from scratch. Now high - and increasing - premiums have prompted thousands of British parents and even grandparents are unwittingly committing insurance fraud as their kids drive off to university in a car primarily insured for mum and dad, or grandma and granddad, with teenage children paying the penalty. New research from Zurich Insurance reveals that one in 10 people surveyed who have helped their child or grandchild buy a car currently has it insured in their own name - with many not realising that they could be breaking the law in doing so. Two thirds of those who have insured the car in their own name admitted they did it primarily to help reduce premiums - as experienced drivers tend to pay lower insurance premiums than their young relatives, while a fifth mistakenly believe the car should be insured in their name because they legally own it. Known as "fronting", the practice involves one person insuring a car in their name and adding someone else as a "named driver" to the policy - when the named driver is in fact the main or only driver, rather than an occasional driver. But more than half of those who have helped their child or grandchild buy a car don't realise that fronting constitutes insurance fraud, with more than a third actively believing the practice not to be insurance fraud. Top tips If you are under 25 and currently looking for insurance then make sure you shop around and get several quotes rather than opting for the first one. Sticking to a low engine capacity - ideally under 1200cc - will also help keep costs down, as will avoiding any modifications to the vehicle. It's also worth considering a Pass Plus course, designed to give new, young drivers additional practical driving experience and once completed, normally entitles drivers to reduced premiums. A lot of insurers will even give a one years no claims bonus just for completing the pass plus, and that could mean anywhere up to 35% off your insurance. Do check with the company you are getting a quote from though, as some may stipulate a minimum age of 20 for this offer. Visit www.passplus.org.uk for more information.
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