As a young driver, what are the benefits of vehicle insurance, and is it necessary to spend money on insurance at all?
If you’re 25 years of age or younger, car insurance premiums tend to be higher than for drivers 30 years and older. But what causes these higher rates and what can you do to decrease them?
5 Factors influencing car insurance premiums
Age – People 25 years of age or younger are considered less experienced drivers. Insurers may also impose an additional excess over and above the basic excess for young people driving a vehicle valued at R500,000 or less.
Lifestyle – Young people tend to travel more frequently on the roads at night, which can be more dangerous. After dark is often when drivers tend to be more reckless, driving under the influence of drugs or alcohol, and speed more because there are fewer cars on the road.
Credit ratings – A poor credit history or lack of one will result in higher premiums. Paying your insurance and credit accounts on time will help you build a positive record and diminish your premiums.
Gender – This is an important rating factor because statistics prove that female drivers have fewer accidents than males.
11 Insurance Tips for Under 25s
Although age counts against you in terms of the cost of car insurance at this stage of your life, here are ten hints to help you save money:
Be self-disciplined – Having a higher excess can save on premiums but exposes you to greater risk. If you are disciplined, you can mitigate against this risk through self-insurance by saving the money you would have paid for more expensive cover. This savings can be used to pay for excess in case of an accident.
Shop around – Research and compare various insurance companies to find the one that best suits your budget and requirements.
Build a profile – Register your car insurance in your own name as soon as possible as this helps you build an insurance profile which helps with savings on premiums within three years. While it may save on premiums to register under a parent’s name, claims will be rejected.
Begin with what you can afford – If comprehensive insurance is too expensive, take out third party insurance which only covers damage to the other cars involved in a collision with you. Although this is riskier as your own vehicle won’t be covered in an accident, you will be able to start building an insurance record and can upgrade as soon as you have the budget to do so.
Build a good record – Your driving experience and claims history are two important factors when calculating insurance premiums. Safe driving will help build a good driving record and lower your car insurance premiums.
Ensure security – Be mindful whenever you park your car that it is parked in a safe location as much as possible. This, and installing security features like tracking devices will help lower your premiums.
Pay-as-you-drive – If your mileage is low, some insurers offer a pay-as-you-drive option, allowing you to pay lower insurance premiums if you spend less time on the road.
Avoid aftermarket additions – Items like boot-spoilers, wide rims, and expensive sound systems can affect a car’s performance as well as make it more attractive to thieves, and ultimately increase your insurance premiums.
Enhance your driving skills – Invest in an advanced driving course to improve your road safety skills and potentially even bring your premiums down.
Consider a smaller engine – because of their lower speed capability, insurers deem cars with smaller engines safer and will charge lower premiums to cover them.
Combine car and home cover – As you build your insurance record, it pays you in the long term to cover your car, household, and other valuables under one policy.
If you’re looking for an affordable quality used car that will give you long-lasting peace of mind, Auto Pedigree has over 65 dealerships countrywide. With a wide range of makes and models to suit a young driver’s needs, we also provide excellent comprehensive car insurance, as well as a range of other vehicle covers, all under one roof.
Disclaimer: This information is for educational, or entertainment purposes only. It must not be construed as advice, legal, financial, or otherwise. We do not make any warranties about the completeness, reliability, and accuracy of this information.