Congratulations, you have just passed your driving test and are excited about getting your first car. But oh no!! you now face one of the biggest costs for new drivers, car insurance!!

Learner drivers

When you were learning to drive it was probably with a driving instructor, although that does not have to be the case. But even if you did learn with an instructor, you probably wanted some more practice supervised by your parents, a relative or a friend, using their car. Which means you needed to buy a car insurance policy even before you passed your test.

On average learner drivers do require an additional 20 hours, private practice on top of the 45 – 50 hours recommended by the Driver and Vehicle Standards Agency. Research by the DVSA found that learners who had private practice with friends and family are 1.4 times more likely to pass their driving test compared to those that do not have private practice.

Historically the normal way to get insurance was to be added to the existing driver’s policy as a provisional licence holder. In recent times this method has proved costly. Some insurers will not even do it. Hence the rise in companies offering flexible short-term cover for learner drivers. This type of cover sits alongside the existing policy for the car and provides comprehensive cover only for the times when the learner is driving and therefore, does not affect the car owner’s policy and no claims discount in the event of an accident.

Policies can be bought by the day, week, or month. The only slight problem with this type of insurance is because the cover is for the person driving the car rather than the car itself, it is difficult to compare prices. Having said that you can go to any of the following company’s websites along with many others and get a competitive quote: Marmalade, Dayinsure, Admiral, Insure4aDay, Collingwood and InsureLearnerDriver.

You should also be aware that as soon as you pass your driving test, whatever type of learner driver policy you have, it will expire immediately and is no longer valid. Do not drive the vehicle until you have notified your insurer and taken out insurance as a qualified driver.

New drivers

Excluding the cost of purchasing a vehicle, the biggest cost for new drivers is car insurance. The good news is the average premium for young drivers has fallen dramatically in the last 12 months, up to 37% in some age brackets. The most expensive premiums are still for drivers aged 20– 24, followed closely by those aged 17-19.

At this stage you have not earned any ‘no claims discount’ so you pay the full premium. If you are looking for a quote the best place to start is with ‘Comparethemarket’. It is an onerous and sometimes frustrating task but there are so many insurers and options available, to look at each option individually what take a long time. After getting a feel for who seems the best, the dearest, the cheapest etc, then try the firms that specialise in young drivers, like the ones mentioned above.

Do remember that the cheapest quote is not always the best quote. From your point of view, you are insuring your car, yourself and third parties in the event of an accident. If the worst were to happen this is when you find out how good or bad your insurance is. Forget about all the frilly bits and the ad ons, the one and only important thing is the quality of their claims service. Do some research, including checking reviews, before you commit and hand over your hard-earned cash.

Black box car insurance

There are plenty of insurers who will provide a telematics black box to record your driver behaviour and in return offer you cheaper premiums.

If you take out black box insurance cover the insurer will arrange for the installation in your car. With a few exceptions they can be fitted to any vehicle. They are small, around the size of a mobile phone and can be fitted in a discreet location so it is not readily visible.

Once up and running the black box will collect and send information to your insurer and they will use this data to set your premiums. Drive safely and responsibly and you will be rewarded with lower premiums because the insurers do not now have to rely on general statistics to set the premium. Virtually all policies are annual so you can renew, have it removed or look for a better deal when it is due.

It is important that you always read the small print, some policies may have restrictions like mileage limits or curfews, for example, limiting the amount of time you can drive at night.

Beware the school of mum and dad. You will need to educate them on the rules for the black box. It does not know who is driving, if dad borrows your car and breaks the speed limit or mum borrows it to go to the 24-hour supermarket at 1 o’clock in the morning it will count against you, and you will be wondering why the premium is going up not down.

Some large black box insurers worth checking out are: Admiral, Marmalade, Direct line, Churchill’s and Co-op.
Some smaller black box insurers worth checking out are: Insure The Box, Drive Like a Girl, Ingenie and Carrot.

Written by Pelican School of Motoring.