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What New Drivers Need to Know about Car Insurance

Mar 03, 2011

If you have just passed your driving test and have your own car then you will probably be looking for car insurance.  You may not really know what to expect from the car insurance companies but one thing you will be expecting is high prices.  New drivers lack experience on the road and because of this, they are considered a higher risk.  It is much more likely for a new driver to have certain mishaps or accidents when driving than someone with more experience behind the wheel and that is why the price to insure a car for a new driver is always going to be higher.  The insurance company knows that there is a higher probability that they will have to pay out on claims for new drivers and this is why they tend to charge them more.

As well as being a new driver, there are other things that the insurance company will take into account when calculating premiums for new drivers.  It is not just lack of experience that increases the risk of accidents and insurance claims.  Statistics show that those under the age of twenty five are more likely to have an accident than those over this age so this will work against you too if you are a new driver under the age of twenty five. 

The car you are driving will also play a role in how much you pay for insurance with new cars costing more to insure than used cars and cars with bigger engines also costing more.  These are things that you can keep in mind when buying your first car so that you can reduce the amount you will be charged for insurance.

So when you start looking for car insurance for the first time, you should make sure that you check a number of different companies.  You are never going to be sure of getting the best deal if you decide to go with the first company that you get a quote from.  It is much better to shop around and then compare the quotes on a like for like basis.  Some companies will offer better rates than others but unless you check out more than one company you will never benefit from this.

Car insurance is something that you have to have no matter how much it costs.  You simply cannot drive on the roads without car insurance.  Besides the fact that it is a legal requirement, you also need this in case of any accidents.  If you were to cause an accident and injure someone or damage their car then you would need your car insurance company to pay for the damages.  The only way for you to start getting your car insurance costs down if you are a new driver is to take out insurance and to drive claim free for a number of years.  As you gain more experience on the road and get older, your insurance costs will decrease.