Steps for Young Drivers to Cut Motor Insurance Premiums by 40% 

by Gazette Reporter
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Experts this week renewed calls to young drivers to ensure they take three important steps i to avail of as much as 40% lower insurance premiums. 

The online motor insurance broker which specialises in insuring young drivers, says that three measures are sure to slash premiums for young drivers:

1.      Completing their Essential Driver Training (EDT) of 12 lessons

2.      Passing their driving test

3.      Getting 1+ year’s named driver experience

Jonathan Hehir, Managing Director of advised: “While the cost of motor insurance premiums has been heading downward in the last 12 months, the reduction in prices has not been experienced evenly across the board. Young motorists still find it challenging to access affordable insurance. They have also had to ensure 2 years of delays and waiting lists at driving test centres.

“And like they rest of us; they are also being hit heavily with the current petrol and diesel costs. But the situation is not hopeless and for those young and/ or inexperienced drivers who are looking for ways to bring down costs – ensuring you have these 3-steps under their belt will go a long way.

“Passing your driving test is one of them – the average national pass rate is just 53%, with the average across Dublin being slightly lower at 49.65%**. So, because there is no guarantee that applicants will pass it first time – young drivers should move as swiftly as possible to start the process.”

Mr. Hehir added: “Consider the obstacles when you are starting out. There is no no-claims bonus, no named driver experience to draw on for discounts, and on top of that there is limited competition in the market with just a handful of insurers willing to take on the level of risk associated with novice drivers. Therefore, young people need to equip themselves with every chance they can of sourcing a discount on their premium. While some might be tempted to go direct to insurers for a policy, it’s important to be aware that the number of insurers that will cover novice drivers is a lot less. Therefore, do remember to use a good, specialist broker to scour the market for you to find the best deal.”

Current figures from the RSA show that waiting times throughout the country vary up to over five months in Killester, Co. Dublin.

Mr. Hehir explained: “It could be tempting to wait until you have your lessons and EDT completed before applying for your test but depending on where you are in the country you could be stuck waiting a long time for your turn to come around. Better to apply early – even before you have your lessons completed – so that you are using your waiting time wisely and you will be ready to go once you are called up.”

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Top tips for young and/or new drivers

Here are a number of steps drivers can take to ensure they get the best value motor insurance cover.

Top 5 tips include:

1.                  Line up your lessons – some insurers offer discounts for drivers who have completed 10 lessons from a qualified driver instructor

2.                   Name driver experience – if possible, plan ahead and try to get added to a parent’s policy in the period up to your driving test. There are some insurance providers who will offer discounts to young drivers who have 6 months’ experience on their parent’s policy.

3.                   Quote for different cars – the model and engine size of the car you are going to buy have a significant impact on the cost of your premium. Don’t be afraid to ask for different quotes for various models.

4.                   Third party versus Comprehensive – check the differences between the different levels of cover according to the value of the vehicle.

5.                   Shop for cover through a broker – remember that some insurance companies specialising in insuring young drivers are only available through a broker

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