Insurance for New Drivers

Insurance for new drivers is expensive because they are a big insurance risk. Not because they’re inexperienced, but because their inexperience means they have no insurance claim record, which insurance companies use to determine insurance premiums. Insurance companies then offset this by assuming a higher risk. Insurance for new drivers is also based on other factors.

Insurance premiums are determined by more than the experience and driving history of the car owner. It is based on the type of car, the type of insurance, the amount it is insured for and the risk of theft, which is not determined by the driving experience of the owner.

Type of car

New drivers often want faster, more expensive vehicles. This isn’t great for their insurance. Fast cars are a high insurance risk especially when combined with inexperience behind the wheel. Faster cars are also more expensive to repair and replace. This means that if the car is damaged in an accident or written off, it will cost the insurance company more to cover. New drivers should rather get a cheaper car until they have at least three-years of insurance history.

Type of car insurance

Insurance for new drivers ranges from third-party cover to comprehensive auto insurance. Third party car insurance is the cheapest option, especially if you drive a cheaper vehicle and can afford to cover the cost of the repairs yourself. Third party insurance, however, won’t earn you an insurance history for comprehensive insurance. This means that if you purchase a new car after three years and comprehensively insure it, the insurance company will not consider the claims history of the third party cover.

Retail or market value

While most insurers automatically insure the car for its market value, some will give you the option to insure it for retails value. This value is obviously higher, which pushes up the cost of insurance for new drivers. Insure the vehicle for its market value to bring to down the insurance premiums.

Increasing the security of the car also reduces its risk of theft, which can lower the premiums. Insurance for new drivers though is based more on the cost to repair or replace the vehicle and risk of accident than theft.

For a range of insurance quotes for new or old drivers, fill in our online form and an insurance representative will contact you shortly.