So you have just passed your driving test and are eager to get out on the road by yourself for the first time but there is one thing standing in your way....that huge insurance premium! Taking out car insurance as a 17 year odl is likely to be the most you will ever have to pay for car insurance until you are able to start building up your no claims bonus to help bring down the cost.
The reason is simple, one in five new drivers will have a crash within the first six months of being on the road and the facts are there to prove it. On top of that just over a quarter of every accident on the roads involves a young driver between the age of 17 and 24, and becuase of this the insurance companies want to cover themselves as best they can. That means sky high insurance prices for that age bracket, with the pockets of the 17 years olds getting hit the hardest! If your a young male it gets even worse as you are seven times more likely to be involved in an accident than a young female.
There are a few things that you can do to reduce the amount you pay for car insurance as a 17 year old. It may sound obvious, but utilise comparison websites such as CompareTheMarket and confused.com to check the prices from as many different insurance providers as possible. Don't forget to also check the companies that don't list themslves on comparison sites such as Direct Line and Aviva.
Secondly, don't always assume that third party insurance is the cheapest. Some companies may be able to offer you a Fire and Theft policy or even comprehensive insurance for a lower price than another company can provide third party. If you are unsure of these policy types, head over to our Car Policy Types Guide to get a better understanding of exactly what it is you are purchasing.
Another good way to help reduce your premium is to take an advanced driving course to improve your skills. Not only can this help to lower the cost of insurance for a 17 year old, it also helps to improve road saftey. The Driving Standards Agency's Pass Plus course is probably the best known of these advanced driving schemes and is specifically aimed at new drivers. Other driving organisations such as ROPSA, the Institute of Advanced Motorists and the RAC also offer additional driving training for 17 year olds.
You can also add an experienced driver to the policy as a named driver to help reduce the cost of the premium. In the case of most 17 year olds, this will probably be your mum or dad. They are likely to have built up no claims bonus and their presence on the policy can help to reassure the insurance company. Be honest though, claiming they are the main driver when they aren't is illegal and is known as fronting. If caught, you could be fined and docked six points on your licence which would result in having to retake your test.
Technology can also come to the rescue of a 17 year old who is trying to reduce their insurance premium. Many insurance companies now offer a policy where a tracking device is fitted to your car and monitors your driving. By agreeing to only drive during certain times of the day or by avoiding certain roads, huge savings can be made on the cost of your insurance.
Although it won't help during your first year of insurance, building your no claims bonus will help reduce your insurance costs the following year. By driving safely and sensibly you can earn a huge discount on your insurance by having just a single year of no claims bonus to your name. Don't forget you can transfer your no claims bonus between insurers so it still pays to shop around when it comes to renewing your insurance.