The cheapest annual premium for an 18-year old male driving a 1.3 litre Ford Fiesta is a staggering £2,689.05. As a result many young drivers are looking to cut corners with a moneysupermarket.com survey revealing that one in five have or would consider "fronting" on their car insurance policy to save money. This is when a parent insures their child's car in their name and with their son or daughter just being a named driver - even though the child will actually be the main driver of the vehicle. However, many people aren't aware that this is illegal and if caught, the insurance will be invalidated and the young driver could be charged with driving without insurance.
Why young drivers face steep premiums
Unfortunately when it comes to young drivers facing high car insurance premiums, the statistics speak for themselves. According to the AA, one in five drivers is involved in a crash during their first year on the road; and male drivers under 21 are 10 times as likely to have a car accident than male drivers over the age of 35. In 2007, 40% of passengers killed or seriously injured on the UK's roads were in a car with a young driver. Of the 8,479 drivers who were killed or seriously injured on the road in 2007, 30% were under the age of 25.
So how can young drivers keep their premiums in check?
There are ways for young drivers to reduce their insurance costs without breaking the law. Here are our top 10 tips:
Choose your car carefully: Every new car is assigned an insurance group from 1-20 (this will change to 1-50 by December) depending on how much the car is likely to cost insurers per claim. The lower the insurance band, the lower your premiums - so search the Association of British Insurers (ABI) database before deciding on the vehicle for you.
Take the Pass Plus course: Young drivers taking the Pass Plus course save an average of £357 on their car insurance. The course consists of six practical modules to give added experience in driving in town; driving in all weather conditions; driving out of town; night driving; dual carriageways; and motorway driving. Depending on the instructor it will usually cost just over £100 to complete.
Earn a no-claims discount: Several insurers offer rapid bonus schemes allowing young drivers to earn a full year's no-claims discount in around nine or 10 months as long as they stay accident and conviction free.
Improve the car's security: Alarm/immobilisers, glass etching, a visible vehicle identification number and high security door and ignition locks can help you save if you use products recommended by an insurer.
Don't modify the car: Fins, low hydraulics and alloy wheels may look good but they can be expensive. A spoiler alone can add as much as £700 to a premium so stick with a vehicle with a conventional specification.
Limit mileage: Some insurers offer limited mileage discounts if you use the car infrequently.
Choose the right options: Many young drivers opt for third party cover as the most basic form of insurance - although this doesn't protect their vehicle in the event of an accident. If you opt for comprehensive cover, think about the options you select - for example you may not need breakdown cover if you have a separate policy and you may not need a courtesy car if you are a named driver on another vehicle in the household.
Think about your usage: Many policies specify social, domestic and pleasure use of a vehicle as well as commuting and business use. If you only use the car for one purpose make sure you're not paying for anything extra.
Choose the right payment method: If you are able to, pay premiums annually instead of monthly to cut out interest charges.
Shop around: Compare policies online with a car insurance comparison tool. Most insurers offer their cheapest deals to new customers online so take advantage of the competitive market by comparing deals and not settling for one or two quotes.
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