Research from moneysupermarket.com found that a 17-year-old male can now expect to pay £2,841 for car insurance - that's £1,200 more than his female counterpart. To make matters worse, 53% of learners take their driving test more than once - meaning more expensive lessons and tests to pay for. Motorists in London are the least likely to pass their test first time, with only 41% making the grade, while Welsh motorists have the distinction of being the most likely to fail on three or more occasions.
Why are young male motorists hit so hard?
The highest car accident rate is among young drivers with the Association of British Insurers (ABI) finding that 18-year-olds are responsible for around 50 collisions a day on the UK's roads. The ABI also finds that young drivers are ten times more likely to be killed or severely injured in a road accident than drivers in their forties and safety campaign organisation Brake claims that young drivers account for more than two in five road deaths.
Young male drivers pay a high price for the 'boy racer' image of their peers. According to Home Office figures released in 2004, men commit nine times as many motoring offences as women and are guilty of 97% of dangerous driving offences and 94% of offences that lead to death or bodily harm.
This in turn leads to an increased number of claims - according to an insurance intermediary, 38% of 17- and 18-year-old drivers make a car insurance claim compared to 20% of those aged 25 or above. This means that insurers view younger drivers as a higher risk.
How can you keep your costs to a minimum?
Keeping your car insurance costs down should start before you've even bought your first car. Think carefully about the vehicle choice you make - insurers penalise drivers they think are likely to behave irresponsibly behind the wheel and driving a car with a large engine, as well as modifications such as hydraulics, darkened windows, alloy wheels and large exhausts creates a negative perception. Keep your vehicle choice conventional - drive a small car with a small engine. It's worth searching through the ABI database to find the car insurance grouping of the vehicle you're interested in but remember you can always upgrade once you've proven yourself as a driver.
Once you've bought a car, think about the type of policy you need - there are three options available to all drivers: third party, third party fire and theft and comprehensive cover.
Most experienced drivers are best off with comprehensive policies to cover themselves against all risks. However, for a young person the cost of a comprehensive policy could be prohibitive. For example, an 18-year-old male living in Leeds driving a Ford Fiesta Zetec LX with 6,000 miles on the clock could pay as much as £3,167.69 for a comprehensive policy. However, the same driver could pick up third party fire and theft cover for just £1,964.53.
Admittedly, the policy will not be as extensive - third party fire and theft only covers you against any damage to a third party and against the theft of your own vehicle or fire damage. Nevertheless, you only legally require third party cover in the UK, so it's worth considering a less extensive policy - particularly if your car is inexpensive.
Make sure you're getting the most competitive policy too. According to the ABI, drivers can save as much as 35% on car insurance by comparing just five quotes. The car insurance comparison tool at moneysupermarket.com compares quotes from more than 50 car insurance providers so you can be sure you're getting a competitive deal.
How can students save money on car insurance?
Many students will be taking their cars to university when the new terms starts next month, but crime rates are often high in student-dominated areas which can increase your risk level even further in the eyes of your insurer. So what can you do to keep the cost down and reduce the chance of you falling victim to crime?
Do all you can to increase the security of your vehicle while on campus - ask your insurer if it can recommend an alarm or immobiliser system for example, which could earn you a substantial discount. Park in a garage overnight if one is available - if not then try to park in a well-lit area off the road.
Consider agreeing to a mileage limit - chances are you won't be driving during the rush hour, so let your insurer know this and you should make savings. More Than offers a pay-as-you-go scheme which reduces premiums by around 40% for those under 25 who drive only during off-peak hours. If it's possible, leave your car at home and only arrange for cover during the holidays if you won't actually need the vehicle while you're on campus.
It can be worthwhile adding an older relative to your policy as a named driver - this will save you money with some insurers. However, do not ask a parent to 'front' a policy for you as this is illegal and will negate a claim if you're caught.
Other ways to save on car insurance
There are many other tips that can help young drivers save on car insurance including:
- Take a Pass Plus - This could cost you upwards of £100 but you could earn a saving in the region of 35%. When you're shopping around, see if the insurers you're interested in offer a Pass Plus discount to see if the course is worthwhile.
- Rapid bonus schemes - Several providers, including Norwich Union and Elephant, offer a rapid bonus scheme allowing you to earn a full year's no-claims discount in around nine months.
- Pay annually - If you do have the cash to hand then pay annually instead of monthly to cut out interest charges.
- Drive carefully - Typically, one claim will add £193 to your annual premium and wipe out a no-claims discount, so keep your eyes on the road and stay accident free.
- Don't speed - Two speeding convictions could see your premiums sky rocket by as much as 74% with some insurers. So keep within the limits and never drive under the influence.
Have your say: Are you a young driver struggling to afford insurance, or perhaps a parent looking to insure a car for your son or daughter? If so, visit our forum as our members may be able to offer some useful advice.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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