Passing your driving test can be a fantastic experience; however, if you are between the ages of 17 and 24, you could be put off by the often high prices of young driver insurance.
Other companies typically set their insurance quotes based on assumptions. For example, if you are a young male driver you may be quoted an alarmingly high price to insure your vehicle. This is because young male motorists are considered ‘high risk’ and more likely to be involved in traffic accidents.
However, an insurethebox policy works on fact; analysing data such as mileage, speed and the time of day to record how safely motorists actually drive. These aspects will be assessed and may influence the price of your policy at renewal.
By law, the proposer, (usually the owner or driver) has to give an honest account of their vehicle before it is insured, but the process of obtaining a quote can sometimes be confusing for those who are inexperienced. Here are a few common mistakes people can make when taking out car insurance.
Generally speaking, modified vehicles, and the drivers of such cars, are perceived as riskier to insure than other vehicles and often require different or more expensive forms of cover.
If a driver purchases a second-hand vehicle and does not realise it has been modified, they could find their car insurance policy increase or even be invalidated in the event of a claim.
It is worth noting that insurethebox does not provide cover for vehicles which have been modified, other than by the manufacturer.
Car insurance for young drivers can typically be quite expensive. However, one way around this is for a family member or more mature motorist to place the younger motorist onto their policy as a ‘named driver’.
So long as the main policy holder uses the vehicle more than other named drivers, this is all completely legal.
However, the Financial Ombudsman Service (FOS) says the number of people “fronting” increased to around 50 a month in 2011.
Fronting, a practice which is actually illegal and classified as insurance fraud, is where a motorist names him or herself as the main driver on a policy, although someone else is actually using the vehicle more than they are.
A named driver policy can be a great way to keep costs down. However, the main driver must use the vehicle more often than other motorists on the policy – otherwise, their car insurance could be invalidated.
Setting an excess
One way to reduce the cost of a policy is to set a voluntary excess; however, a driver must be realistic.
An excess has to be paid in the event of a claim before the insurance provider will cover the remainder of the bill for any damage repairs. An excess which is set too high, could leave the driver in financial difficulties should an accident occur.
At insurethebox, if the policy holder was not to blame for an accident and the third party’s insurers agree, the excess may not be charged.
Under-insuring or over-insuring
When taking out a policy, drivers may opt for comprehensive cover, which protects a vehicle from damage caused by a traffic accident. However, consider how much the vehicle is actually worth. If the car is rarely used, taking out third party fire and theft cover may be enough.
On the other hand, if the car is an absolute essential and something which the policy holder could not do with not, comprehensive cover may be the best option. All insurethebox policies are sold as comprehensive cover.
Taking out a policy with insurethebox
When you take out a young driver insurance policy with insurethebox, we will fit a telematics device to your vehicle which will allow you to monitor and manage your driving.
Providing you drive safely, you could experience a price reduction in your policy when it is time to renew and you will also earn additional miles of cover to add to your policy miles purchased at the outset.