Follow us on:
0818 911 111

3 Steps For Young Drivers To Cut Their Insurance Premiums.

Young Drivers can cut up to 80% off their insurance premium by obtaining a full license.

Here at Coverinaclick.ie we are calling on ALL young drivers across the country to complete this 3 step process in order to dramatically lower their insurance premiums.

The simple 3 step process is;

  1. Complete all required driving lessons.
  2. Obtain their full license.
  3. Get some named driver experience - perhaps on a parent's policy.

Jonathan Hehir, Managing Director of Coverinaclick.ie has advised;
"The Consumer Price Index released this week revealed that motor insurance is down 11.7% between Jan 2017 & Jan 2018 – but if you speak to any young driver (under 25) or their parents, they will tell you that insurers are still looking for big money for these policies. However, speaking to the same young drivers and/or parents has made us realise that people are simply unaware of the extent to which lessons & experience can reduce a premium. We believe if people knew how much such measures could help towards reducing their costs, they might be a bit more proactive in applying for their test. Moving from a provisional to a full license alone can reduce premiums by anywhere from 30 – 80%".

We have taken an in-depth look at just how the above 3 steps will impact a young drivers insurance premium. We've compiled the figures in the charts/images below to show you just how impactful the savings can be.

Coverinaclick.ie price comparison
[Click to enlarge]

These quotes are based on the following assumptions: No penalty points, claims free, full license, conviction free, sedentary occupation/student (not used for work purposes), not fronting on parent’s policy (for quote where the parent is the main proposer).

Jonathan went on to comment;
"Young and first-time drivers do not have access to no claims bonus or driving experience discounts and so invariably pay more than experienced drivers. Also, there is limited competition in the first-time market - a driver with a full no claims bonus could have 15+ insurers looking to quote for their business, whereas a first-time driver might only have 5 insurers looking to quote. While going direct for a motor insurance policy is favoured by some, it’s often not advised for less experienced drivers as the number of insurers wanting to insure this group is greatly reduced, so it’s important that they get experts to scour the market for the best deal".

Waiting

Young drivers should be aware of the fact that they may face a relatively lengthy wait between when they apply for their test and when they actually get to sit the test. The most recent figures from the RSA show that waiting times throughout the country vary from an average of 8 weeks in Birr, Co. Offaly to 19 weeks in Nenagh, Co. Tipperary. This wait should be kept in mind by provisional license holders and it is worth noting that they could apply for the test towards the end of completing their lessons so they can use the interim waiting period to get the lessons finished and get some practice in before the test.

Jonathan had some more advice for young drivers in this regard;
"It’s not always necessary or advisable to wait until you have your lessons done – for some drivers it might be best to apply and use the wait time in the interim to get the necessary lessons under their belt. The average national pass rate is 53% so you should remember this too, you might not get it first time around!"

Side note: No Fronting!
Coverinaclick.ie say while the practice of 'fronting' has become common place in recent years (as households move from having just one car to two or more), insurers are increasingly clamping down on the practice and will not honour these policies in the event of a claim. Jonathan describes fronting as; "Parents taking out policies on what is essentially their son’s or daughter’s car, so as to get a cheaper premium". This process may be seen as an attractive option to lower premiums however drivers need to understand that insurers are very strict on this and have adopted a zero-tolerance approach in recent years. Fronting will result in a cancellation of your policy and in the event of a claim, a non-payment. So do yourself a favour and don't take the risk.

Other top tips for young drivers

The above three tips are the best ways that we have found to see a tangible decrease in your insurance premium. However there are several other steps that young drivers can take to reduce insurance premiums. The advent of the novice or N plates (compulsory disc to be displayed by newly qualified drivers for two years) has had very little impact at least on insurance costs. No insurers have indicated any changes or new rates based on the use of 'N' plates. Our other top tips include;

  1. Look at the model and engine size of the car you are going to buy. Don’t be afraid to ask for different quotes for various cars.
  2. Check the differences between third party, fire & theft and comprehensive, according to the value of the vehicle.
  3. If you want to teach your teenager to drive, cost out the various alternatives – adding them to your or your spouse’s cover or arranging separate cover for them – don’t assume that one will be cheaper than the other.
  4. Remember that some insurance companies specialising in insuring young drivers are only available through a broker.

A number of other elements can have an effect on your car insurance. For example where you park your car can have a surprising impact on insurance premiums. Keeping your car in a locked garage will very often lead to a reduced premium as opposed to keeping it in a driveway or on the street, especially if you live in the city. Where you park your car can raise or lower the liklihood of it being stolen/damaged. Similarly what geographical location your car will be left also has an impact. People who live in the countryside will usually have lower premiums than drivers who live in urban areas. Certain areas will also be statistically more likely to have a claim and so insurers will combat this by having higher premiums for these areas.

 

Currently the statistics show that there are a massive number of young drivers both Male and Female who are operating using a provisional license versus the total number of registered drivers in the country.


[Click to enlarge]

 

Coverinaclick.ie are specialist brokers for young drivers. We work with new, young and provisional drivers every day. Ring us today and we'll get you the best rates available to us. One of our dedicated young driver specialists can get the insurance product that suits you at the best available price. Call 01 231 9310 or click here to get started with your quote.