If you’re still learning to drive, you’re probably thinking about that important first car purchase, right? You’ve probably saved up enough money to get something you want, which is exciting! I don’t mean to spoil the party, but you’re going to have to spend almost as much on the insurance!
As unfair as it might seem, you might end up spending thousands on insurance in your first years of driving. That number will decrease as time goes on, but for now, you’ve got to deal with it. There are ways and means of making this purchase more cost-effective, though. We’re going to detail some of them today for your benefit.
Once you’ve passed your driving test, you’ll probably be eager to get on the roads right away. Hold your horses, though, as Pass Plus is something that’s worth considering. It’s an advanced course that will teach you skills such as driving on the motorway and in tough conditions. Ultimately, your skills will increase, making you feel more comfortable after passing your test. Many companies add Pass Plus into their insurance considerations, bringing down the overall cost. It’s definitely worth doing!
Choice Of Car
If you’re coming out of your test expecting to drive a Ferrari, you better think again. The choice of car you go for is a big indicator as to how expensive your insurance will be. It’s best to look at used Nissan’s for sale or the cheapest new Vauxhall you can find. In general, the lower the engine and the smaller the car, the cheaper your insurance will be. You don’t want to be driving something with too much power as a rookie, either!
Raise The Excess
You’ll be asked to provide a suitable excess amount when you need to claim on the insurance. If you’re willing to raise this, you’ll benefit from a cheaper insurance policy. While it might seem like a fantastic option, you need to be careful. If you do find yourself in a situation where you need to pay the excess, you’re going to have to be able to do it. Make sure you can afford it, and don’t be tempted to save a little extra if you know you’ll potentially be in trouble.
Add A Named Driver
So, you need to be a little careful with this one, but it’s a great way of saving money. You can add a named driver on your policy to encourage trust. For this purpose, you want someone who has been driving for a long time without gaining any points. Adding them as the named driver will surely bring down your insurance costs fairly heftily. Don’t be tempted to do a switcheroo and make them the main policy holder, though. If you do this and make yourself a named driver, this is illegal and will normally result in rejected insurance claims.
Black Box Car Insurance
There are insurance policies out there that will provide something called black box car insurance. Providers like iKube do this by fitting something to your vehicle which tracks your driving activities. In the case of iKube, if you’re found to be driving between 11 PM and 5 AM, you’ll incur additional costs. This method will bring down the cost of your insurance substantially, but it obviously comes with some downsides. Whether you’re willing to forego the ability to drive at night is up to you. It’s another option that’s worth considering, though.
Avoid Interest By Paying Yearly
This is only going to be possible for a selection of people, particularly if you have savings. Most young drivers pay insurance monthly, but by doing so, they incur interest charges. It’s always more beneficial to pay yearly as you’ll save a fairly hefty dose of cash. As we’ve mentioned, though, this isn’t always a realistic option. Do it if you can, but don’t worry if you can’t.
Restrict Your Mileage
Another option that presents itself to you is to restrict the mileage allowance on your form. You’re asked to estimate how many miles you’ll do in a year, and if you go way over this limit, claims might be rejected. So, it isn’t clever to simply estimate a very low mileage when you know you’ll be doing more. Instead, try and restrict how much driving you do in that first year. Don’t be afraid to get out there, but save the long road trips until you’re more confident. In years to come, you’ll save more on insurance and will be able to raise that mileage allowance.