May be car insurance can be a scary prospect for first-time drivers. Before you know the car insurance for a new driver costs, it is better for you who is a new driver to know what does car insurance stands for. The liability insurance is a two-fold type of coverage:
- Bodily injury coverage: This covers injuries suffered by another person during an auto accident.
- Property damage coverage: This covers damage to another person’s property during an auto accident.
Note that liability insurance doesn’t cover you or your car unless you’re the injured party (and even then, it’s the other person’s insurance that covers you).
The Average Cost Insurance
The cost of car insurance for under-25s is eye-wateringly high and rising. The average cost for a 17-22 year-old is already at £1,277 per year. According to research by comparison website Gocompare.com, youngsters, or their parents, are spending an average of £3,825 on their first car, up from £2,477 in 2009. The website said car insurance makes up a third of the total bill at an average of £2,232 for a 17-year-old driver, down from £2,455 in 2009.
How to Cut Costs Insurance
However you can cut the insurance cost. Here we will give you some tips for car insurance cost-cutting tips for young drivers that can save you £100s.
- Don’t assume third party is the cheapest
There are three different types of car insurance: third party only, third party fire and theft, and fully comprehensive.
- Choose a high deductible. Most people choose a low $250 deductible, which is much more expensive than, say, a $1000 deductible. If you can afford to pay $1000 in case of an accident, you will save significant money by raising your deductible to that amount, or higher.
- Shop for lowest rates. Let’s make it clear, insurance rates vary widely between insurance companies. There is no such thing as “standard” car insurance rates. As a new driver, if you are considering simply being added to your parents’ policy, you might find that changing the entire family to a different company saves you money overall.
- Avoid speeding tickets. We mention this specifically because it’s the most common reason for increases in insurance rates for young drivers. Car insurance companies consider drivers who have speeding tickets to be higher risks, and raise their rates.
- Don’t pimp your car. sexy it might be, money saving it is not.t the more changes you make to your car, barring security ones, the motre you will be charged. It is an important aspect on the car insurance for a new driver.