How teenage drivers can reduce their car insurance costs

I have been approached by Sainsburys Finance about hosting a guest post for them on how teenage drivers can reduce their Car Insurance premiums.  Having gone through this with my daughter in 2010 and now assisting my brother and sister in law, I can wholly recommend these suggestions.

Learning to drive is a true rite of passage for many teenagers. However, Car Insurance premiums for young people can be very expensive. This is because young drivers are usually seen as a higher risk by insurance providers.

By choosing the right car insurance, taking the proper precautions and building up a good safety record, teenagers could steadily reduce their car insurance premiums. Here are a few pointers.

Take a Pass Plus course
The Driving Standards Agency’s Pass Plus course is designed for new drivers. It can help teenagers gain more experience in a variety of driving conditions. A Pass Plus certificate might also help teenagers get discounts on their car insurance policies.

Drive a sensible car
Driving a highly modified car or one with a large engine can significantly raise the cost of car insurance. Young drivers should consider choosing cars in low insurance groups as this can reduce premiums.

Add or be added as a named driver
Teenagers can bring down the cost of their premiums by adding a more experienced person, with a good driving record, as a named driver on their policy. Alternatively, an older driver can add a teenager as a named driver on their own policy. Remember, if the teenager makes a claim, it could affect the no claim discount of the policyholder.
However, be careful not to ‘front’. ‘Fronting’ is a form of insurance fraud in which someone other than the main driver of the vehicle is falsely declared as the policy holder, in order to cut insurance costs. A common example of this is when parents or older relatives insure a teenager’s car and declare themselves as the main driver, when in fact this should be the teenager.
Fronting can lead to a criminal conviction and invalidate the insurance policy, making the policyholder liable for all costs arising from any claim. It can also make it more difficult and more expensive to get car insurance in the future.

Look out for car insurance deals when buying a new car
Car dealers and manufacturers sometimes offer special insurance deals when you purchase a car. It’s worth keeping an eye out for these offers. However, always check that the car insurance offered is right for the driver’s requirements.

Shop around
Research the market well to get the best deals. Use price comparison websites to get an idea of the different deals on offer for your preferred level of cover. Remember that you might have to contact some insurance providers directly, as not all are included on price comparison websites.

Pay a larger voluntary excess
Some insurance providers might agree to let teenagers pay a larger voluntary excess, which can sometimes bring down the cost of premiums. However, it’s important to check that they would be able to afford this amount in the event of a claim. Also take into account any compulsory excess that might be payable when claiming.

Different opinions, different needs
Some parents are happy to buy car insurance for their teenagers. Others think it better for teenagers to pay for it themselves, as this could make them more responsible drivers and adults. But regardless of who pays, always make sure the car insurance policy is the right one for the driver’s needs.