Under 25 and Buying Your First Car?
Being able to go where you want, when you want is something most young people dream of.
However, there is no denying that buying and insuring your first car if you are under 25 and a newly-qualified driver can be expensive.
We have some tips to help you to get the most for your most of your money.
The amount of insurance a driver pays is not only affected by their age and length of driving experience.
The make, model, performance level (engine size) and age of a car are all factors the insurers use to assess the annual premium. This is because all insurance is based on risk, in this case the likelihood that the insurer will have to pay out for a claim if you have an accident or your car is stolen.
The cost of repairs and replacement parts is also including in the risk factors.
Insurers refer to a ranking list calculated by a body called the Group Rating Panel, made up of representatives of the insurance industry, the Association of British Insurers (ABI) and Lloyds Market Association.
The panel uses all this data to place cars into one of 50 groups with Group 1 being the lowest and cheapest ranking and 50 being the highest. Insurers then use this information to quote you a price for insuring your vehicle.
The cheapest ones to insure will therefore be those that tend to be less expensive, low-specification models with smaller engines.
If you then add into this calculation your age and inexperience as a driver, it’s easy to see that a luxury, high performance car is going to be well beyond affordability for most young people.
When looking for a car to buy, therefore, any of the mainstream makes, such as Ford, Renault, Vauxhall or Honda with an engine size below 1.3 is likely to be the cheapest to unsure.
There are other things young people can do to bring down the cost of their car insurance. These include adding security immobilisers and alarms, but make sure they are ones approved by the insurer.
You can also take the Pass Plus qualification after you have passed your test and some insurers will also offer what is called Black Box Insurance. This involves having a “black box” monitor fitted to your vehicle, which tracks and records your driving behaviour, such as acceleration, speed, braking and the times of day when you drive. The information is used to reward careful drivers by reducing their insurance costs.