Guest post by Lauren Cordell
Student car insurance is often costlier. Its premium costs over £1,000 on average, while UK drivers only pay an average of £470. Depending on your university and car type, it could be much more expensive.
Generally, there are two main reasons why it’s a bit pricey. First, students have less driving experience, so they’re at high risk. Second, most insurance companies see students’ households as high risk because they’re often attractive to burglars in the UK.
The good news is that there are some ways to reduce the cost of student car insurance. Check them out here.
Add A Named Driver
Adding a more experienced and older driver, like your parents, can be more affordable to your policy as a named driver. As experienced drivers, insurance companies consider them a better risk than you. It’s common, especially if they’re likely to use your car occasionally.
Take note that this is not driver fronting. It’s when someone falsely insures a car in their own name when the main user is actually a younger, riskier motorist to lower your premium. This is against the law and can leave your car uninsured if you get into an accident.
Opt For Cars In Low Insurance Group
Each car belongs to one of the 50 car insurance groups. Insurers use them to help set the premium you’ll pay. The cheapest to insure are those cars in group one. These vehicles typically have a small size, low value, and unassertive performance. For example, such cheap cars for students include Renault Clio, Ford Ka, or Fiat 500 Pop.
In contrast, the most expensive are those in group 50. Cars under this group tend to have faster acceleration and a more powerful engine. However, the more high-spec and luxurious a car is, the higher the premium bracket.
Be “Pass Plus” Certified
A Pass Plus course is a Government road safety initiative. It’s taken after passing the practical driving test and receiving a full UK driving licence to boost the confidence and safety of licensed drivers, especially the newly qualified ones. It’s usually less than £200.
Many insurance companies offer discounts to Pass Plus-certified drivers so that you might get better insurance. But take note: not all insurers do so. Also, it’s uncertain that you could save the course’s total cost in one year.
On a positive note, Pass Plus will undoubtedly improve your driving skills. You’ll be less likely to be in car accidents and make insurance claims when you’re a better driver. This makes you enjoy a no-claim bonus (NCB).
NCB is a car insurance premium discount offered by your insurer as a reward for your driving experience and claims history. It usually lasts up to five years on average, which could mean a maximum discount of around 70%.
Tailor Your Policy to Your Needs
Most policies have compulsory excesses if you need to claim, but you cut your annual premium down to pay a voluntary excess on top of this. Ensure that a high excess is sensible for you and affordable should you need to make a claim.
Moreover, choose a low-mileage car insurance policy if you’re a student who doesn’t drive very often or far away. It’ll be much cheaper since most insurers think you’ll stay less on the road, which means you’ll be less likely to make a claim.
Add Security Systems
Student accommodations with a high crime rate can influence car insurance premiums. If you’re residing in these areas, secure your vehicles more. Opt for car immobilisers and alarms, or install them in your current car. Doing so can help to lower your premium.
What Are Other Insurance Policies To Invest In?
Student car insurance has the same coverage as standard car insurance. It has coverages for costs for damages, injuries, theft or loss, and legal liability related to cars. However, it doesn’t usually come with health and life insurance.
For health, everyone has access to the National Health Service (NHS) in the UK, unless you’re an international student. If you’re an international student, you must pay an Immigration Health Surcharge worth £470 per year to get NHS access.
Since you’re still young, consider a life insurance investment too. The earlier you invest, the more affordable the insurance premiums. Plus, there are several personalised policies that can meet your needs and financial capabilities. If you want to know more about certain policies, Assurance life insurance options can help you out.
Additionally, invest in a black box policy. It costs less than a standard policy yet rewards safe drivers. The reward can be up to 100 Bonus Miles every month. If you can collect them throughout the year, you can save a lot of money at renewal.
Don’t hesitate to invest in safety gadgets like car security systems and telematics. While they can be pricey, they make your premiums way cheaper, saving more money in the long run. Above all, the simplest way to save on your student car insurance is to always practise safe driving and sensible motoring behaviours.