Car Insurance for Learners

October 28, 2009

Car insurance for provisional licence holders

Just because you’re learning to drive and may not even own a car yet, it doesn’t mean that you can get away without car insurance. The Road Traffic Act requires all motorists to be insured against their liability for injuries to others and for damage to other people’s property – failure to take out suitable insurance could lead to prosecution.

So what options are available to provisional licence holders and what happens when they pass their test?

Provisional licence holders – your insurance options

Choosing appropriate car insurance is dependent on how you plan to learn to drive and your individual circumstances:

- If you’re learning in an instructor’s car only: If you can’t afford to drive a vehicle of your own and are making do with an official driving instructor’s vehicle only, then the good news is that you don’t need to concern yourself with car insurance. Driving instructors are obligated to be fully insured for other drivers and so you won’t need to arrange a policy of your own.

- If you’re learning to drive in a parent’s vehicle: If you have access to a parent’s vehicle then you will need to be added to their policy as a named driver, which will cause your parent’s premiums to rise. It’s worth asking parents to shop around for car insurance ahead of their renewal date to see if they can find a company that will allow you to build up a no-claims discount even while acting as a named driver on their policy.

- If you’re driving your own vehicle: Those fortunate enough to own a vehicle must acquire appropriate insurance immediately after buying their car. If you are buying a vehicle that is used you must have the insurance in place before you buy so you can legally move it from one place to another.

Assuming you are learning to drive in your own vehicle, there are several options available:

- Learner driver policies: Several insurers offer ‘learner driver policies’ which are effectively short-term policies until you pass your driving test. The advantage of these specialist deals is that they allow you to shop around again once you have passed your test to find a cheaper deal, rather than being tied into a contract. They are generally more expensive over the short-term, however.

- Third party car insurance: The most basic policy covers liability for injuries to others, damage to their property and liability while towing a caravan or trailer.

- Third party, fire and theft car insurance: Protection against fire damage, theft and damage from attempted theft is added to standard third party cover.

- Comprehensive car insurance: The most complete but also the most expensive form of car insurance will cover loss or damage to your vehicle as well as various policy options that usually include windscreen cover, medical expenses cover, accidental damage and more.

What happens when you pass your driving test?

Many young drivers incorrectly assume that when they pass their driving test their premiums will go down because they are ‘better’ drivers – in fact, this is rarely the case.

The bulk of insurers actually increase premiums after you pass a driving test because you are no longer obligated to drive while supervised, making you more of an insurance risk. Indeed there are some resounding statistics that work against young drivers, with AA research showing that one in five young drivers has an accident within their first year of driving; and research from the Association of British Insurers highlighting that young men under the age of 25 account for more than a quarter of all dangerous driving offences despite the fact that they only make up around three per cent of drivers in the UK.

So how can new drivers keep premiums down?

Thankfully, several insurers are willing to reward new drivers that take steps to prove they are responsible. Ways to save can include:

- Driving a small car: Choose a vehicle with a small engine that ranks in a low insurance group – avoid cars with high performance engines.

- Completing the Pass Plus course: The advanced driving course provides six hours of additional tuition and could slash premiums by as much as 35 per cent with some insurers.

- Rapid bonus schemes: Sometimes referred to as ‘bonus accelerators’ these allow young drivers to earn a full year’s no-claims bonus in under a year.

- Declaring your mileage: Agreeing to a mileage limit could cut premiums by around five per cent.

There are additional savings to be made by increasing the security of your car with insurer-approved devices; parking in a garage overnight; increasing your voluntary excess; and by paying for premiums annually instead of monthly. Most importantly however, new drivers should shop around for car insurance online to ensure they are receiving a competitive deal.

(DrivingTips is not responsible for the contents of this article or links to outside websites. The article was submitted by a representative of GoCompare.com)

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