What are my new driver insurance options?
The good news is there are several ways to bring down the cost of your new drivers insurance policy and make your premiums more manageable.
Black Box or Telematics
An important development in recent years is that of tracking devices (AKA black boxes or telematics). These can be fitted to your car or installed on your smart phone. They record driving performance, monitoring whether you sick to speed limits, as well as other critical driving habits, such as cornering and braking.
Telematics help the insurer build up a profile of the new driver, which may lead to discounted premiums. It’s a particularly attractive option for female drivers, who are statistically much safer drivers, but who can no longer get cheap insurance based on their gender.
Third party vs. comprehensive insurance
Comprehensive insurance insures the new driver against any accident, even when it’s his or her fault – and will pay out for your car as well as any others damaged.
Third party insurance is at the other extreme of the spectrum, covering only damage to other drivers’ cars and not your own.
In between these two options is third party, fire and theft insurance – which, as the name suggests, goes a little further than third party insurance, in covering you if your car’s stolen or damaged by fire.
It’s worth speaking to an insurance broker about the three different options, as a policy that seems more expensive in the short term can be often save you money in the long run.
Consider a policy with a curfew or lower mileage limits. In order to bring down the price of new driver insurance, forward-thinking insurers have looked at ways they can lower your risk. For example, most accidents statistically happen at night – so limiting your driving to daylight hours, if it’s a possibility for you, is one way to get cheaper premiums.
With the help of a professional broker, there are many ways to cut the cost of your new driver insurance – so don’t despair!