Two Things Young Drivers can Do to Lower Cost of Car Insurance



Whether you're an experienced driver or you're a young driver who has just figured how to be behind the wheels, you will always have to think hard about the type of insurance you need. Car insurance can be quite expensive depending on your unique circumstances, but it may become even more difficult to find an affordable plan when you're a young driver. A good idea is to shop over the internet because surveys show that 38% of drivers found the best car insurance deal online. This also helps you find an insurance cover that suits you the most. Here are two things to do to cut costs of your car insurance policy.

Opt for the Right Type of Car Insurance

There are three types of car insurance, third party cover, third party, fire, and theft, and comprehensive cover. Usually, third-party cover is the cheapest and it is natural for young drivers to want the cheapest legal cover. However, cover is limited and almost certainly will not cover any of the costs if the younger driver is at fault. Then there is no protection. Expensive comprehensive cover is a wiser option and it often comes with additional benefits such as road assistance, European cover or legal assistance if it is ever required. In the end, there is greater peace of mind with substantial cover for damages, loss, and injury making it overall better value for money.

No-Claims Bonus

A No Claims Bonus or also known as No Claims Discount is the amount you earn when you do not make any claim on your policy for a full insurance year. It means when your company doesn’t have to pay you for any damage you cause to other property or incurring any financial loss to someone. Obviously, it makes them happy and they thank you by offering you a discount, which definitely helps you cut cost.

If you really want to reduce the cost of your car insurance, your best policy should be to protect your no-claims bonus. After all, it’s taken years to build up. A long no-claims bonus goes a good way towards being offered discounts on insurance costs but to avail it, you must be well aware of the policy of the insurance company. Each company has its own terms and conditions for utilizing your no-claims bonus. Usually, accidents that are caused by the insured person impacts negatively on a non-claims bonus. But it is not always so clear cut. Moreover, if you currently have an open claim but they haven't yet decided your fault, you will still have to wait to claim any discount. It’s best to take time to fully understand how your insurance company operates its no-claims bonus.

Conclusion

There is no doubt that younger drivers are a higher risk until they have road experience. Even so, by 25 many have secure jobs and mortgages, are well established and raising families. They have been tarred with the same brush as those younger drivers who have little respect for the rules of the road or other road users. The result is not only the heavy financial burden on young drivers who are sensible and need to drive but learning to drive is one less thing to enjoy as part of becoming a responsible adult.