Student car insurance can be more expensive in the United Kingdom (UK). Its premium is around £500 higher than a regular UK driver’s. It can be even higher, depending on a student’s university and car type.
Even worse, students don’t get particular discounts when they take out car insurance. The good news is that, like any driver, they can do plenty of things to help keep their insurance costs more affordable.
Add A Named Driver
When students add a more experienced and older driver as a named driver to their insurance policy, they’re likely to get a cheaper premium. These can be their parents, older siblings, or older relatives who have been driving for a long time. Since they’re experienced, insurers consider them less risky than the students.
Adding a named driver is commonly done in the UK and is not fronting. In car insurance, driver fronting is a kind of car insurance fraud where someone falsely insures a vehicle under their name to lower the premium of a real owner who’s a younger, riskier driver. It’s against the law in the UK and can likely make the car uninsured.
Choose Low Insurance Group Cars
Insurance companies put all cars into the so-called one of 50 insurance groups. They use them to help policyholders set the premium they’ll pay. The most inexpensive to insure are cars in the lower groups, which are usually smaller and have less assertive performance. These cars include Renault Clio, Ford Ka, and Fiat 500 Pop.
On the other hand, cars in group 50 are the most expensive. They typically have more powerful engines and faster acceleration. Since they have higher specs, their premium is higher than others.
If students want to save costs on their car insurance, choosing a car in the lowest insurance groups will be the ideal option. They don’t only ensure the affordable cost of cover but also car value.
Be “Pass Plus” Certified
The Pass Plus Scheme, also known as Pass Plus, is a road safety initiative spearheaded by the Driver and Vehicle Standards Agency (DVSA), an executive agency of the UK’s Department for Transport (DfT).
It’s a kind of course, usually worth less than £200, taken after passing the practical driving test or getting a full UK driving licence. After finishing the course, takers will get certificates and be labelled as Pass Plus-certified drivers.
The scheme aimed to boost the confidence and ensure the safety of new drivers in the UK. For insurance companies, this may mean new and old drivers will be less likely to get into accidents, which means less likelihood of filing claims. As a result, they offer discounts to Pass Plus-certified drivers who will apply for their car insurance. However, not all insurers do so.
A no-claim bonus (NCB) may still be enjoyed if there’s no discount during the application. It’s a car insurance premium discount rewarded by insurance companies to their policyholders with good driving and no claim records.
On average, NCB may last up to five years, translating to approximately a 70% discount.
Tailor Your Policy to Your Needs
If a policyholder needs to claim, many car insurance policies have compulsory excesses. However, on top of this, students may cut their annual premiums down to pay a voluntary excess. If they need to make a claim, they just have to ensure a sensible and affordable high excess.
Moreover, low-mileage car insurance is recommended and much more affordable for students who don’t drive often or far away. For insurance companies, this means the students will be less likely to stay on the road and make a claim, so they usually charge less for low-mileage car insurance.
Why Is Student Insurance Costlier?
There are two main reasons why student insurance can be pricier. First, most insurance companies see students as high-risk. Compared to their parents and most other adults, students may have less driving experience and may be prone to multiple traffic violations. As a result, insurers typically offer students with high-risk auto insurance.
Anyone prone to accidents, has a history of DUI convictions and collisions, owns exotic vehicles, or has a history of filing multiple claims is statistically more likely to file claims. Hence, they’re all higher-risk drivers and will be charged higher premiums by most insurance companies for this type of insurance coverage. That’s how high risk auto explained —the higher the likelihood of claims, the higher the premium, just like in other types of insurance.
Second, many insurance companies also see areas of university towns and other students’ accommodations as high risk. In the UK, these areas are very prone to theft or theft, vandalism or traffic accidents. Like high-risk drivers, these places may cause students to file for claims, so insurers charge them higher premiums.
Final Thoughts
Car insurance is a necessary expense for most students, but it doesn’t have to be so expensive. Some insurers understand how costly education is, so a few offer helpful discounts. Look for them and enjoy great savings!
