Avoid car insurance price hikes by looking online

If you are a young driver you may have to search harder for an affordable car insurance deal if new proposals become law.

The UK government recently published its Equality Bill, which aims to iron out discrimination in the country. If implemented the new laws would affect many areas such as the gender pay gap, in a bid to promote equality. However, part of the proposals allows insurance companies to charge “age appropriate” rates for their car insurance policies.

At present, younger drivers pay the most for policies as they are generally considered to be of a higher risk in terms of car accidents. Steve Sweeney, from Money Supermarket, has slammed the proposed laws believing that drivers should be charged rates depending on their individual driving abilities rather than age.

“Using age as a broad brush for evaluating risk has been a bugbear for older travellers and younger drivers for years,” he said. “Insurers will continue to use age as a legitimate form of risk assessment. Ultimately, I think people should be treated fairly based on their own individual risk profile.”

Mr Sweeney recently presented figures that show the average 17-year-old driver often pays over £3,000 a year for their car insurance premiums.  However, once they have turned 18-years, teenagers usually pay £1,453 for 12 months and £800 after their 19^th birthday. Young female motorists continue to attract cheaper premiums than teenaged males but their policies are still significantly higher than those offered to older woman drivers.

In order to cut their outgoings, the company has issued some tips to motorists to help them save money. Young drivers are encouraged to take part in a government-approved Pass Plus course, which can make them safer car users and could cut their premiums.

Buying a slightly older vehicle that does not have any modifications is an additional way of attracting more affordable rates. Motors with smaller engines are cheaper to run and insure, so are ideal for younger motorists keen to get on the road. If drivers only plan to drive now and again they should let their insurer know, as policies are often cheaper if annual mileage is low.

In addition, teenage drivers should enquire as to whether their insurance companies offer a discount if they have been a named driver on a parent’s policies. Young drivers who occasionally use their parents’ cars without making any claims can sometimes attract reduced premium rates.

Leave a comment

Name (required)

Mail (will not be published) (required)

Website