Have you just obtained your driver’s license or are you considering acquiring a first car as a young driver? Know that the cost of your auto insurance policy can be very high during your first 3 years of driving. Why do insurers apply these rates? How to save on your contract as a young driver? The full point on the subject.
High risk = high price
To calculate insurance contract rates, regardless of the insurance product, insurance companies first assess the risk. Auto insurance for young drivers, also called novice drivers, do not deviate from the rule.
According to statistics from the National Inter-ministerial Road Safety Observatory (ONISR) for the year 2015, 15-29 year-olds representing 18% of the population are involved in 22% of fatal accidents. One in five deaths occurs in an accident involving a novice driver.
Young drivers also experience a lack of experience when they drive and do not necessarily adopt the right reflexes that more experienced drivers may have.
Taking all these factors into account, the insurers consider that the risk is high for this category of driver and offset this risk by a “surcharge” framed by the insurance code.
This premium can be applied to drivers who have been licensed for less than 3 years or have never been insured (even with a license issued for more than 3 years). It decreases by half each year provided that it is not considered as responsible for an accident in any of them. In the first year, the maximum increase is 100% (50% for drivers participating in accompanied driving), 50% (or 25%) in the second year and 25% (or 12.5%) the third. After 3 years without causing any damage, the surcharge disappears. However, the bonus / penalty system applies from the first anniversary of the contract.
Accompanied driving rewarded
Among the criteria taken into account by the insurers, the method of obtaining the driving license is not neglected. If you opted for the Early Learning Driver (AAC) curriculum, which is commonly known as “driving accompanied”, your insurer will be more lenient about the rate it will offer you.
According to some studies, young drivers who have completed the AAC are 5 times less likely to be injured than those in the conventional industry, which is why insurers believe that their experience is stronger and apply tariffs that can be reduced by 30% .
Another advantage, as already mentioned above, is that the premiums that can be applied by insurers are half less.
Choosing your car
The determining factor in insurer pricing is the choice of the vehicle made by the young driver. In addition to the profile of the insured, insurers set the amount of the auto insurance contract according to the vehicle to be insured. Several criteria determine it: the age of the vehicle, the brand, the purchase price, its tax power in particular.
To reduce the price of insurance for novice drivers, opt for a used car of low value. The cost of repairs will be less which will play in favor of the young driver with his insurer.
As for the motorization of the car, it is better to go towards a vehicle of low power and avoid diesel engines (often more powerful). The risks of excessive speeding or poorly controlled acceleration (recurring causes of accidents) will be reduced as will the price of insurance. The young driver can prove himself during his first 3 years of driving on this type of vehicle before acquiring a car of a higher standard.
Adjust warranties
To the extent that it is recommended to privilege a car of low value, choosing insurance called “all risks” is not absolutely necessary. Third party insurance will be more appropriate. Although the coverage is less extensive and the deductibles are higher, the annual amount of insurance is significantly less.
As a reminder, the third-party insurance contains the mandatory minimum guarantees to circulate legally including the civil liability insurance.
Even if the third-party formula is advisable, it may be wise to negotiate additional guarantees and the amount of deductibles if the vehicle is used regularly. Adding warranties covering theft, fire, breakage of ice, personal damage to the driver (with a sufficient ceiling) can avoid additional costs in the event of a claim without substantially increasing the cost of the invoice.
On the same principle, adjusting the amount of the deductibles according to the guarantees proposed is a solution to obtain reductions from the insurer. It may be worthwhile to raise the price of deductibles on certain collateral and negotiate a decrease on others. In summary, a “tailor-made” contract negotiated with an insurer allows a win-win relationship.
On the other hand, some insurance companies offer specific contracts for young drivers, including options such as refresher courses, theoretical and practical accompaniment, taxi fares, etc.
If the novice driver does not have to drive the car on a daily basis, the insurance formula per kilometer offers a significant financial advantage. The insurance rate will be based on the kilometers traveled by the young driver. Another solution is to declare itself as a secondary driver of a vehicle with advantages (constitution of a bonus / malus capital, experience taken into account) and disadvantages (use of the vehicle on an exceptional basis).
Other Tricks
To limit the cost of insurance as a novice driver, in the case of small, responsible claims, it may be preferable to attempt an amicable settlement with the owner of the damaged car or personally to take charge of the repairs of his vehicle if A third party is not identified. The assumption by the insurer of these small claims would entail the application of a penalty and the decline in the surcharge would be called into question.
Another means of saving money is to declare to the insurer all the elements that could play in favor of young drivers, such as anti-theft systems, alarms, etc. By presenting this type of protection with invoice, the insurer is able to grant you discounts.
Compare driver contracts
Often young drivers refer to the insurance companies of their parents to insure their cars since it is possible to obtain preferential rates if several members of the family are covered by the same insurer. These steps are facilitated by a pre-existing relationship that does not ensure the best offer at the best rate. A first estimate from the parent insurer can be used as a reference point.
To be sure to have the best price / warranty / service ratio, the use of an online car insurance comparator allows you to view a large part of the market in just a few clicks. By informing the profile of the young driver and defining the desired guarantees, you will obtain quotes that correspond to your needs.
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