Young Drivers Car Insurance
Like it or not obtaining insurance cover for young drivers i.e. under the age of 25 years, is expensive. This is because they are perceived as a risk by the insurance companies. As young and inexperienced drivers the insurance companies are able to prove statistically that they are more likely to have an accident and make a claim on their motor insurance policy.
There are three types of motor insurance cover, namely comprehensive cover, third party cover and third party fire and theft cover.
In the case of the young driver, comprehensive insurance cover is very expensive. Unless the young driver is driving an expensive car and for whom money is no object e.g. like it is for a premiership professional footballer, it will make more financial sense for the ordinary young driver to take out third party cover or third party fire and theft cover. For most young drivers the cost of comprehensive cover will far exceed the value of their car. For example comprehensive cover for an ordinary car could be as much as £2,500 (depending on cost of the car, make and model) whilst the cost of purchasing an inexpensive second hand car (for the young driver to build up driving experience) could be anything up to say, £1,200. In that scenario third party fire and theft insurance cover would be better as it would cost the young driver anything up to £1,700 (depending on the cost of the car, make and model) thereby saving him around £800. Third party only insurance cover would cost even less as the young driver would not be insured for fire or theft to his car.
However bear in mind that:
With comprehensive cover the young driver is protected whether the accident was or was not his fault as the insurance company will pay for any repairs to his car and if it cannot be repaired pay for a replacement car. If the accident was not the young drivers’ fault the insurance company will pursue the insurers of the other driver in recompense.
With third party or third party fire and theft cover the young driver is only protected if he caused the accident, for the repairs or replacement of the other drivers’ car. He will not be covered for any repairs or replacement of his own car. However if the other driver was at fault for the accident the young driver can claim for the cost of repairs or replacement of his car from the other drivers’ insurance company.
The cost of motor insurance is very high for the young driver and the type of cover best suited for his needs will depend on the cost, make and model of his car. Motor insurance premiums vary a great degree (there are over a hundred insurance companies to choose from) so it is very important to visit a comparison website to obtain the best deal possible.
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