If you’re a student with your hands full of A Level results – congratulations! Whatever you now decide to do with those results you might want to consider getting a Young Driver Car Insurance quote before November 2015 so that you don’t suffer increased premiums when The Chancellor’s increased in IPT takes effect (Young drivers to suffer biggest bite out of their bank balance…). But if you think that joining your parents’ policy will help to bring down the price-tag, you might want to think again.
Young Driver Car Insurance – Are You Doing Something Illegal?
It’s a still much believed myth that putting yourself on your parents’ car insurance as a named driver would, in theory, allow you to reduce the cost of your car insurance. The problem with this approach, which is referred to as ‘fronting’ is that it is now illegal. Car insurance companies may, if they suspect that this is the case, refuse to pay out following an accident. If, for instance, you have an accident whilst driving to work, the car insurance company will want to know how regularly you did that journey because, according to their files, you shouldn’t be the main driver.
Young Driver Car Insurance Options
One valid option is to add an older named driver to your car insurance policy. This could have the effect of reducing your policy by as much as five per cent. You could take the extra Pass Plus course, which would further demonstrate your high standard of driving. Some car insurers will look favourably on this and some offer discounts of up to ten per cent. Check out the insurers who offer rapid bonus schemes, which allow you to build up no claims bonuses much more quickly. Some may offer Curfews (where you can’t use the car after certain times during the day) and others may suggest Black Box policies. For example, More Than Car Insurance offers a Smart Wheels policy where they will install a black box in to your car after you take out their policy. Through this they can build up a picture of your driving style and, if you drive safely (generating what they call a positive ‘Driving Style Score’) they can reward you.
Cheap Student Car Insurance – the long game
Don’t forget that car insurers are businesses and they may accept your business if you decide to try ‘fronting’. What looks fine on paper, and allows you to drive for a period of time, may not feel so good if you have an accident in the car you have been dreaming about but cannot get it repaired or replaced, because the car insurance company have found a loophole to avoid paying out. There is also a possibility that you could end up with points on your licence and prosecuted for having no car insurance. So getting those student bills down could well be the dream, but consider including REALISTIC Student Car Insurance costs when you start making plans for your future.
Adapted from our blog in August 2015, first published in May 2009