Why is it getting harder to find car insurance for young drivers?

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers.

These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling.

UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen.

As a result of what insurance company’s see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies.

It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parents age.

Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for
car insurance for young drivers, which is often paid not by the young person but by their parents.

The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence.

The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent’s policy in this way when they are in fact, an occasional user of the vehicle.

The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company.

They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time.

Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.

What is gap car insurance and how do you know whether you really need it? Gap car insurance, like many other types of insurance isnt necessarily required. That is to say that you can certainly purchase a new car without gap car insurance; however, you could be leaving yourself open for some losses if you dont purchase it. Read on for more tips to better understand whether you need gap car insurance or you can skip it.

Gap car insurance covers the difference between the market value of your car and your loan amount. Arent the two the same, you might ask. Not necessarily. You see, the moment you drive your car off the lot it depreciates, or loses value, immediately and quite significantly. Lets say you purchase a new car and pay 25,000 for it. On average a car will depreciate at least 20% right after it leaves the dealership. That means your brand new car is now worth only 20,000. What happens if you have an accident soon after the purchase? Even if you have full insurance coverage, including comprehensive and collision, your insurance policy will still only cover the market value of the car. Unfortunately, even though the market value and insurance policy are now worth only 20,000 you still owe in the neighborhood of 25,000 for the car. Without gap car insurance youll be stuck covering that additional 5,000 on your own.

Be aware that not all gap car insurance policies are the same and this is important. For example, some gap car insurance policies will cover losses due to theft and accidents but not all so be sure to ask questions regarding specifically what is covered in the policy before you take it.

Usually, gap car insurance is a good idea if you are about to purchase a new car and are concerned that you wouldnt be able to cover the difference between the market value and the amount that would be cover by the C&C policy. Be aware that gap insurance is not available for older vehicles in most cases.

While youre certainly not required to take out gap car insurance by your lender or the dealer, it can help you to rest easier in knowing you wont be stuck owing thousands of pounds on a totaled car in the event that you suffer an accident or theft shortly after the purchase.

It is also important to understand that if you finance your car through the dealership you can usually take out gap car insurance at the time of the purchase; however, youll probably end up paying more for the policy than if you simply took it out with your regular auto insurance agent.

Before taking out gap car insurance, always be sure to check your existing policy to find out whether gap insurance might already be contained within that policy. You never know, it might not necessary to purchase an additional policy at all. If its not included, give some thought to whether the price of the gap insurance would be worth the trade-off of not having to worry if you have an accident and cant afford to pay the difference between market value and coverage amount with a regular policy.

Car Insurance Quote – Things To Know To Get Very Cheap Car Insurance And Quotes

Auto insurance premiums vary widely from state to state and even within states. The same person may find swings of as much as 700 on the cost of an annual policy. Insurance agents are not legally bound to tell a perspective customer about discounts which may apply to hisher insurance. There are, however, things the consumer can do which may lower the price paid for auto insurance.

Higher deductibles

The single quickest and easiest way to lower your insurance premium is to raise your premium. Having a 1000 or even a 1500 deductible can lower premiums 15 to 20 percent. If you decide to go this route, consider putting the money saved the first year into an account earmarked to pay the deductible should you have any accident.

Investigate auto records

Your driving record may be unblemished but the record of the car model you own can also have an affect on your premiums. Insurance copies compile extensive reports on the way cars respond in accidents and how popular certain cars are with thieves. Cars with poor crash test ratings and cars that are frequently stolen cost more to insure. When buying a new car use an auto buyers guide to compare crash test and theft rankings.

Use the same insurance company

If you have more than one vehicle insure all of them with the same company. Almost all insurance companies offer multi-car discounts. Many companies offer further discounts if you use any other products they offer such as homeowners insurance and life insurance.

Getting many quotes and comparing them is the best way to check pricing, coverage and save money.

And, dont forget, the best way to lower your car insurance premium is to drive safely.

Please see our recommended sources for insurance quotes from multiple providers. We have done the research so you don’t have to.

Although these days it’s pretty easy to arrange your car insurance online, comparing quotes at the click of a button and paying by credit card for instant cover, one ever present difficulty still remains: the high cost of insurance policies. The fact that having car insurance in place is both a legal requirement and a sensible idea doesn’t detract from the annoyance of having to pay what seems to be an exorbitant sum, and most of us would jump at the chance of reducing the bill.

To do this we need to know what factors insurance companies use when deciding how much our premiums will be.

Perhaps the most important influence on the level of your premium is your own history as a driver. If you’ve a history of having accidents, then naturally you’re a higher risk to the insurer and so they’ll charge you more. Worse, if you’ve been convicted of a motoring offence such as speeding or driving while under the influence, then your insurance will cost you even more – especially if your licence was withdrawn.

On the plus side, a history containing no black marks such as accidents will result in cheaper insurance as you build up a ‘no claims’ discount over the years.

The next most important factor is what kind of car you’re trying to insure. Naturally, more expensive cars will cost more to replace, and so the insurance will cost you more too. This isn’t the whole story though, as other features such as engine size, the availability of cheap spares, and the difficulty of repair will have an influence too. Finally, some models of car are well known for being easier to break into or steal than others – the insurance companies are well aware of this and will adjust their quotes accordingly.

How you use your car will also affect the price you pay for cover. If you rarely drive and have a low annual mileage, then your premiums can be cut as you’re on the road for less time, and therefore have less chance of needing to make a claim. City drivers may also have to pay more compared to those who drive in quieter areas.

Where you keep your car is important too – if you have a secure parking area, preferably one that keeps your vehicle out of sight and under cover, then your risk is lowered, as will be your premiums. Cars that are regularly parked at the roadside are at a higher risk of being stolen or involved in collisions, and so will be more expensive to insure.

One final point to cover is that of how attractive your car is to thieves, and not just in the obvious way of how desirable your vehicle is! An expensive car with a good security system including an alarm and window etching etcetera will be more of a hassle for criminals to profit from, and so is less likely to be stolen than a cheaper car with little or no security. Also, a car featuring plenty of gadgets such as an expensive audio system or satellite navigation will attract greater interest from potential thieves.

So as we can see, even though car insurance is an expensive business, it’s not always as simple as it seems, and by looking at what insurers want in a ‘perfect’ customer, you may be able to drive down your premiums.

Car Insurance Quote – Things To Know To Get Very Cheap Car Insurance And Quotes

Auto insurance premiums vary widely from state to state and even within states. The same person may find swings of as much as $700 on the cost of an annual policy. Insurance agents are not legally bound to tell a perspective customer about discounts which may apply to his/her insurance. There are, however, things the consumer can do which may lower the price paid for auto insurance.

Higher deductibles

The single quickest and easiest way to lower your insurance premium is to raise your premium. Having a $1000 or even a $1500 deductible can lower premiums 15 to 20 percent. If you decide to go this route, consider putting the money saved the first year into an account earmarked to pay the deductible should you have any accident.

Investigate auto records

Your driving record may be unblemished but the record of the car model you own can also have an affect on your premiums. Insurance copies compile extensive reports on the way cars respond in accidents and how popular certain cars are with thieves. Cars with poor crash test ratings and cars that are frequently stolen cost more to insure. When buying a new car use an auto buyers guide to compare crash test and theft rankings.

Use the same insurance company

If you have more than one vehicle insure all of them with the same company. Almost all insurance companies offer multi-car discounts. Many companies offer further discounts if you use any other products they offer such as homeowners insurance and life insurance.

Getting many quotes and comparing them is the best way to check pricing, coverage and save money.

And, dont forget, the best way to lower your car insurance premium is to drive safely.

Please see our recommended sources for insurance quotes from multiple providers. We have done the research so you don’t have to.