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Car insurance for young drivers: Why it's so expensive and how to save - YouTube
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Young drivers are often hit with much higher
car insurance premiums.
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And while thereâs nothing you can do about
your age, there are a few ways you can reduce
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your costs.
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In this video Iâm going to talk through
why car insurance for young drivers is so
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expensive and seven key ways you can save.
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Plus, weâve also included a handy checklist
so you can make sure youâve thought of everything
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before taking out your car insurance policy.
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Why itâs so expensive
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Young drivers are those between the ages of
17 and 25.
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The reason why these policies are so expensive
comes down to three things:
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1.
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Lack of experience.
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If you fall in this age bracket chances are
youâve only been driving for a few years
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or have just recently passed your test.
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2.
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And this is more than a sweeping statement.
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Studies have found that 17-25 year olds are
statistically more likely to get into road
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accidents.
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And you canât argue with maths!
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3.
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The final reason could be the fact that this
is the first car insurance policy youâve
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taken out, so you havenât built up a no
claims bonus yet which could help to reduce
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your premiums in the future.
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There are a number of other things that will
affect the cost of your car insurance, like
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the make and model of your car and where you
live, but these factors will apply across
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every age group.
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7 ways you can save
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In the UK you are legally required to have
at least third party cover, but here are seven
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potential ways you could save.
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Black box car insurance
Since risk and inexperience are two main reasons
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why young driversâ car insurance policies
are so high, one way to reduce them is to
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prove you are a safe driver.
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And you can do this by taking out telematics
or âblack boxâ car insurance.
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This type of policy involves having a black
box fitted into your car which monitors your
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driving performance.
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The idea is the safer you drive, the lower
your premiums.
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Itâs worth noting that some black box policies
come with curfews and restrictions on how
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far away from your registered home you can
drive.
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And, if youâre genuinely not a safe driver,
your premiums will go up.
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Temporary car insurance
If you only use your car when youâre back
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from university or visiting family and friends
and need to borrow their car, consider getting
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temporary car insurance.
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With temporary car insurance, you can insure
your car for short periods of time, usually
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between 1 and 28 days.
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Getting your parents involved
Adding yourself to your parentsâ policy,
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or adding them to yours, can help lower premiums
because of their age and experience.
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Some insurers will also offer a multi-car
discount.
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Be aware that it is illegal in the UK to list
yourself as a named driver, if you are in
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fact the main driver, to take advantage of
lower premiums.
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Only use this hack if it genuinely suits your
circumstances.
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Avoid monthly payments
If you can, try to pay your premium off in
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one blob.
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Increase your access
Increasing your excess, which is the minimum
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amount you have to pay out towards any claims
you make, can make your overall premium cheaper.
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Just ensure you donât raise it above an
amount that you can afford to pay out of pocket.
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Choose a small safe car
Choosing a small, safe car with easy to find
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parts will help keep costs down; as well as
increasing your carâs security and avoiding
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adding unnecessary modifications.
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Shop around
The best way to get the best deal is to shop
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around and compare as many policies and providers
as you can.
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Some insurers will also offer price matches
to cheaper policies you find online, so get
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hunting for those sweet deals.
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Thereâs no one policy that guarantees to
be cheaper for all young drivers.
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Check out our full list of ways you can save
and compare your policy options at finder.com
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- links are in the description below.
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Car insurance checklist
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When itâs time to lock down some car insurance,
use this checklist to ensure youâve covered
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all your bases.
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1.
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Start by thinking about what kind of driver
you are and how often you use your car, as
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this could lead you towards a more tailored
policy like black box or temporary car insurance.
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2.
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That being said, before you look at more tailored
policies, itâs a good idea to initially
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research regular car insurance aka third party,
third party fire and theft and comprehensive
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cover.
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This way, youâve got a solid overview of
all of your options and you may even find
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you get a great deal at this stage.
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3.
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If none of these options suit, nowâs the
time to look into policies more tailored to
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your personal circumstances.
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4.
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Once youâve picked the right policy for
you, consider any optional extras like breakdown
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cover, courtesy car cover or protected no
claims.
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5.
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As well as adding cover, think about any optional
extras you can get rid of.
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For example, trailer insurance if youâre
not going to be towing a trailer.
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6.
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Next, factor in any payment plan options.
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As mentioned before, it will usually work
out cheaper if you can afford to pay your
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premium in one go.
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7.
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Remember, thereâs no such thing as the perfect
policy, so really the key is to balance your
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cover needs with a reasonable price.
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8.
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Once youâve paid for your car insurance,
your provider will then send you over your
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policy documents.
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Itâs a great idea to store your documents
somewhere safe and memorable, whether digitally
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or in a filing cabinet somewhere, so theyâre
easy to find if you need to make a claim.
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What next?
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For more information on all the ways you can
save and to compare the right policy for you,
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head to finder.com.
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Links are in the description below.
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Subscribe to our channel for more videos like
this one, give us a like below or leave us
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a comment to share your thoughts and questions.
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Thanks for watching.
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