For those who have passed their driving test just recently, high car insurance premiums are all too familiar. If you’re a younger driver on top of this, your insurance could be even higher as insurers could see you as more of a risk – so much so that you may not be able to afford to insure a car.
You may have heard the myth that there’s a price break in car insurance premiums after the age of 25 and that you could pay much less for your policy from that time, as this is when you’re no longer considered a young driver. But is there any truth to this? Let’s find out.
As with many financial myths and popular beliefs, the idea that your motor insurance premiums decrease at 25 is based in some level on fact as car insurance can get cheaper as you get older. Insurers are allowed to vary the amount they charge you for premiums based on your age as part of risk assessment. Their workings out have to be based on a reliable source and stats have shown that younger drivers are more likely to get into accidents than older drivers.
However, there’s no ‘magic age’ when the price of premiums suddenly decrease. It’s unlikely to be the case that your insurance premiums will drop significantly when you reach 25. Instead, if you’ve been driving for a few years and building up your no claims bonus, your premiums should steadily decrease the longer you drive.
It’s also not the case that insurance premiums will decrease when you’re 25 compared to when you’re younger if something else changes that increases your level of risk. For example, if you have a crash and need to make a claim on your insurance or you replace your car with a vehicle from a higher insurance group, it’s unlikely that you’ll see lower insurance premiums when you come to renew just because you’ve reached the age of 25.
Getting lower premiums
If you’re a young driver and you’re looking to cut the cost of your insurance premiums, there are a few ways you can do this. You could store your car in a garage at night instead of leaving it parked on the road as this is safer and help to push down your premiums. Another alternative is to look at telematics or black box insurance where a device monitors how safely you drive and your premiums can be adjusted accordingly.
One of the best ways to find a cheaper car insurance premium is to shop around, as some insurers will be more willing to take on young drivers – so they’ll quote you a lower price. Try a price comparison site like uSwitch.com to see what deals are available for you and it’s likely you’ll see quite a big price range between different insurers.
For more tips on ways to save on car insurance when you’re a young driver, check out our blog.