Gaining an understanding of the way in which car insurance premiums are calculated, and the kinds of figures to expect, can really help learner drivers prepare for the future – and get the best possible premiums.
The initial outlay for learner driver insurance could be less than you think. This is because the risk that learner drivers pose is deemed to be relatively low, since they always have an experienced driver supervising them.
Whether he or she is learning to drive in a 10-year-old Ford Fiesta or a 20-year-old banger, a young provisional licence driver could be looking at an annual premium of just £400 – regardless of whether the car is owned by someone else, or by the learner themselves.
Various lengths of short-term insurance policy are available on the market, as well as pay-as-you-go arrangements. So, by choosing the policy that’s right for the individual, costs can be kept as low as possible.
Do young drivers need standard insurance?
Don’t let learner driver insurance lull you into a false sense of security – a standard policy is going to cost a lot more for a young new driver, but there are plenty of ways to keep the cost down.
Car insurance quotes are calculated by taking into account several factors. Some relate to the driver him or herself, such as age, driving experience and no claims bonus. Of course, these are impossible to improve upon in the short-term. Try to see them as a long-term investment, because as driving years and no claims bonus build up, premiums will fall.
In the meantime, black box (or telematics insurance policies) will allow a skilled and sensible young driver to prove his or her driving skills, rather than being typecast as a ‘high risk’.
What is black box car insurance?
Once installed in the car, a black box will monitor when, where and how the individual drives. Good driving skills can result in insurance savings of up to 50%.
A young driver can expect to pay around £1,500 for a fully comprehensive telematics policy in the first year, and a good driving record could see that premium halved for the second year. A standard fully comprehensive policy for the same driver would cost around £2,700. Learn how black box insurance works.
How can the car affect insurance premiums?
The factors that can be instrumental in reducing premiums from day one, relate to the car itself (type, value, mileage etc.).
The value of the car
In the UK, all car models are assigned a vehicle group based on their performance, cost to repair, and security and safety systems. Models of relatively low value (as new), with small engines and state-of-the-art safety and security features will fall into the lower groups – and the lower the group, the lower the insurance premium should be.
A young driver with a fully comprehensive telematics insurance policy on a three-year-old, 1-litre car of low value can expect to pay around £1,500 in the first year. A brand new Audi A3 is likely to cost in the region of £7,000-£8,000 to insure.
The age of the car
Cheap cars won’t always mean lower premiums. The age of the car can also be a defining factor in the calculation of insurance premiums. Older cars are likely to have less safety and security features, often costing more to insure.
However, an approved alarm, immobiliser or tracking device can be added to an older car, which may have a positive effect on your car insurance quote.
A young driver with a fully comprehensive telematics policy on a 10-year-old, 1-litre car of low value can expect to pay around £1,500 in the first year.
However, the same driver would be looking at a premium of around £1,800 for a telematics policy on a 20-year-old car of similar size, performance and value. And a standard fully comprehensive policy for that 20-year-old car could be as much as £3,700. (Or £2,500 for third-party, fire and theft only.)