How much it really costs to put a young driver on the road
Back in 2012, it was announced that it was costing young drivers more than £5,000 to actually get on the road, with the car being the cheapest part of the whole process. Thankfully, I was quite lucky. It cost me £1,000 for intensive lessons, £900 for a car and then £950 for my car insurance. Road tax was less than £100 a year and my MOT was covered for the first year.
Still, when you are paying it all yourself it is expensive (even when the total amounts to less than £3000). However, it turns out that four years later it is still just as expensive to get a young driver on the road.
Comparethemarket.com conducted a study and found that young drivers were being burdened with insurance costs that were almost half the cost of the vehicle they had purchased or were looking to purchase.
So how can you make it less of a financial burden to get on the road?
Consider a telematics box
Most insurers now will automatically offer a ‘black box’ to younger drivers before they can get car insurance with them. This box allows the insurers to track driving behaviour and has the potential to lower the price of the premiums if they are a good driver.
Comparethemarket’s research suggested that drivers could lower their premiums by as much as £600. So for a little inconvenience, you will not only drive better but you could see a massive difference to your savings.
Shop around for insurance
Even though I have been driving for years, I still shop around for insurance because my current insurer never offers the best deal. Don’t just go for what you think sounds about right for a first time driver. Use the comparison websites and phone insurers as well to see if you can wangle a better price. I phoned my current insurer recently and managed to get a £200 reduction in my premium because it was offered cheaper elsewhere.
Don’t be a car snob
The research found that a Ford Fiesta that has an average value of over £2,500 actually costs on average £1110 to insure. Yes, it’s a nice car for first time drivers, but you have to weigh up the costs of the insurance. Although not necessarily a popular car, the Ford KA is on average £1578 to buy but it is only £940 to insure for 12 months. When you first pass your test you have to weigh up the pros and cons of having a nice shiny new car and paying through the nose for car insurance, or having something slightly less shiny but much cheaper to insure.
If you want to know more about the survey click the link below:
http://bit.ly/1TEyftv
Still, when you are paying it all yourself it is expensive (even when the total amounts to less than £3000). However, it turns out that four years later it is still just as expensive to get a young driver on the road.
Comparethemarket.com conducted a study and found that young drivers were being burdened with insurance costs that were almost half the cost of the vehicle they had purchased or were looking to purchase.
So how can you make it less of a financial burden to get on the road?
Consider a telematics box
Most insurers now will automatically offer a ‘black box’ to younger drivers before they can get car insurance with them. This box allows the insurers to track driving behaviour and has the potential to lower the price of the premiums if they are a good driver.
Comparethemarket’s research suggested that drivers could lower their premiums by as much as £600. So for a little inconvenience, you will not only drive better but you could see a massive difference to your savings.
Shop around for insurance
Even though I have been driving for years, I still shop around for insurance because my current insurer never offers the best deal. Don’t just go for what you think sounds about right for a first time driver. Use the comparison websites and phone insurers as well to see if you can wangle a better price. I phoned my current insurer recently and managed to get a £200 reduction in my premium because it was offered cheaper elsewhere.
Don’t be a car snob
The research found that a Ford Fiesta that has an average value of over £2,500 actually costs on average £1110 to insure. Yes, it’s a nice car for first time drivers, but you have to weigh up the costs of the insurance. Although not necessarily a popular car, the Ford KA is on average £1578 to buy but it is only £940 to insure for 12 months. When you first pass your test you have to weigh up the pros and cons of having a nice shiny new car and paying through the nose for car insurance, or having something slightly less shiny but much cheaper to insure.
If you want to know more about the survey click the link below:
http://bit.ly/1TEyftv
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