Think strategically when buying a car
Buying a car is a big purchase. It’s not just buying the car itself either, it’s learning to drive, and getting your insurance… the combination adds up to a serious amount of cash.
To make this less financially painful, it makes sense to find a car that’s cheap to insure (a car within a low insurance group), cheap to maintain and cheap to run. Is it fuel efficient? What’s the tax going to be like? Click here to see what other tips The Money Advice Service give.
Get your insurance down
We already know that young drivers’ car insurance is expensive, so getting it as cheap as possible is important. There are lots of ways you can reduce your premiums, but staying with your current provider and just accepting your renewal quote is definitely not one of them.
Compare your car insurance quote every year, a few weeks before your renewal date. That’ll give you plenty of time to find the best deal and could save you money if you buy three weeks before. We can help you – our online search will only take a few minutes and you’ll end up with a page full of insurers that are happy to insure a young driver.
Once you have your quotes, you can see if there are ways to reduce them any further – you could take off any unnecessary add-ons like a courtesy car for instance. But think about whether you could afford alternative transport while your car’s being fixed or even if you have alternatives available. Or you can increase your voluntary excess, which could bring the premium down – but do make sure that you can afford to pay both the voluntary and the compulsory excess if you ever need to claim.
Normal car insurance premiums are worked out based on the risk you are to the insurer. In other words, that means how likely you are to make a claim. They calculate this by using statistics about claims made by your age group. Statistically, 17-24 years olds are more likely to have an accident than other age groups, which is why your premium can be so hair-raising.
Telematics is relatively new and monitors your driving – not the driving of the masses. A box is fitted to your car, which tells your insurance provider how and when you’re driving. If you drive carefully you’ll be rewarded with lower premiums. However, it works the other way too, so if you drive too fast or at peak times it could increase your premium.
Add an experienced driver
Another way to make car ownership cheaper is to share your car with a responsible driver. If you still live at home, add one of your parents as a named driver as this should reduce your premium. Just make sure that they will be using the car as it’s fraud to add someone on who isn’t really going to be driving the vehicle.