Car Insurance For First Time Drivers – What You Need to Know

Car Insurance For First Time Drivers - What You Need to Know

After months and months of tiresome training, lessons and revision, you have passed both your driving theory test and your practical driving test. Congratulations! Whether you passed on the first try or not, all that matters is that you have done it.


It is perhaps the most exhilarating thing that happens in a young persons life and the most significant up until that point. You put your mind to something and you succeeded. And what’s better, you never have to go through that process again!


But now the excitement is over, it’s time to come back down to the real world and worry about car insurance. It can be easy to neglect this until after the test is passed and you have your license in your hand, which is completely fine. With car insurance, there is not much need to plan ahead, apart from ideally a day or two to allow your insurance to get up and running.


Getting car insurance for the first time can be a complicated and scary process, it may even be the first thing that you are spending your hard-earned money on. The lucky few may be fortunate enough to have their parent help with the process or even pay it for them.


Car insurance companies are notoriously tricky to deal with. For first-time drivers, expect your fee to be quite high as the likelihood of you crashing or damaging your car is higher as you’re still technically learning. But, over time, it will go down if you are sensible and don’t need to claim on your insurance.


To help you get on the road, here is everything you need to know about car insurance for first-time drivers.


Types of Insurance


All drivers have the option of three types of car insurance:


  • Third-Party – This insurance only covers the cost of damage to other peoples property, cars or themselves. It is the most basic.
  • Third-Party Fire and Theft – This cover is the same as Third Party but also protects against loss or damage of your vehicle if it is stolen or in a fire.
  • Comprehensive – This is the greatest cover you can get. It includes all the cover from both of the others, plus covers any damage to your vehicle.

It’s important to note that Comprehensive cover only covers your car in the event of an accident. Any general wear and tear is your responsibility, unfortunately.


How Much Will it Cost?


This is the million-dollar question, and luckily, it doesn’t take that long to figure out. The insurance companies base the price of your car insurance on a lot of factors. They take into account your age, where you will park overnight and your gender. All online insurance providers have handy online tools that you can use to work out how much it will be. A good tip is to use comparison websites as they can often find you better prices.


It won’t surprise you that younger people around the age of 18 are the most expensive to insure. The average annual insurance cost for someone in this age group is just shy of £2,000. Compare this to the average yearly car insurance cost for, it is about £1,300 more expensive.


Unfortunately, there is not much you can do bring this price down, you will just have to drive responsibly and bring it down over time.


Why is it So Expensive?


It all comes down to risk, the risk for the insurance companies. The best scenario for them is not paying out, which means you not getting into an accident. If you do crash into someone, the insurance companies may go to court with the other person in the crash to settle whose fault it was, this in itself can be a long and pricey process. Aside from that, they may have to pay £1,000’s to fix your and the other person’s car, while you still only have to pay your minimum yearly amount.


If you go years without crashing you will slowly build up a no-claims bonus. If you don’t get into an accident then the insurance company know they can trust you, because you don’t pose as much of a risk anymore.


The best thing to do is to just grit your teeth and drive well to build this up before you know it you will be paying under £500 a year!


How to Pick a Policy?


Choosing the company you decide to insure your car with can be a tricky decision. With so many companies out there offering all sorts of add on’s, it can be a bit overwhelming. When you enter your details you should get a handful fo quotes in a reasonable price range. Compare the customer reviews of these companies and the extras they provide to make your choice.


For first-time drivers getting car insurance can be a daunting process and it can often be an unpleasant surprise to see how much you have to pay for the privilege of driving. But with the proper research, you will find a car insurance policy that is right for you. Make sure you get the insurance that is right for you, a comprehensive policy is a safe bet for new drivers as you’re still learning. Before you know it, you will have years of no claims bonuses built up as long as you drive sensibly and obey the laws of the road.