It is illegal in most places in the world to venture on to the roads in a car or other motor vehicle without adequate insurance. Insurance is designed to compensate others in the event of accidental damage or injury as a result of your driving, and also to compensate you, provided you have an adequate policy, for damage to your vehicle, or loss due to theft, or for injury to you in the event of an accident. Car insurance deals can vary enormously, though, and the amount you pay will depend on a number of factors of which the most important ones are your age, location, type of vehicle, age and value of vehicle, and whether you have a fully comprehensive policy or just a basic one to cover third party liability.
Obviously you cannot change your age, and probably not easily your location, but it helps to be aware of these factors when you are looking for car insurance, especially when starting out on your motoring career. A young driver will have to spend considerably more on insurance and may therefore have to make do with a cheaper car than he or she would ideally prefer. Your sex may also be a factor because statistics tend to show that young male drivers, in particular, have more accidents than others, probably due to a more aggressive style of driving and a tendency to take more risks. It is not uncommon for the cost of insurance for a young male driver to be greater than the value of the car itself.
A young driver will have little experience and this meand he or she will not qualify for a no claims bonus. Such a bonus is offered to careful drivers who have not had a claim in the last few years, and can amount to as much as 60% discount on the annual premium. Other factors that can affect your premium are: whether or not you are the only driver, whether the car is regularly garaged or at least parked off road overnight, whether you want fully comprehensive or just third party, fire and theft cover, whether you want extra cover such as for windscreen replacement or legal costs, and how much excess you are prepared to accept in the event of a claim. If your car is only worth £1,000 to £2,000 many would say that it is not a very good idea to spend out on a fully comprehensive policy. You may as well settle for the minimum third party, fire, and theft cover. If you add more drivers to your policy it is likely to cost more. One ploy young drivers use though is to get themselves added as a named driver on a parent's policy for the parent's car, provided of course the parent will agree to this! (more...)