Let’s not beat around the bush; cars are expensive. The cost of most new vehicles is through the roof, and that’s not the only expense. Drivers also have to worry about tax, and the real kicker – insurance. Most of us dread the arrival of that insurance quote and, when it comes, it’s often a cost we can’t afford. In the current age, most of us live from paycheck to paycheck, and another monthly expense of that size just isn’t a feasible option for us.
But, should that mean that you forget your driving dreams? Of course not. In fact, doing so would only mean wasting the money you’ve already spent. What good would all those lessons do if you don’t use the knowledge? Not to mention that your brand spanking new car will sit on your drive unused.
Instead, it’s essential to turn your attention to just why your insurance premiums are so high. One easy way to keep costs down would be to share a vehicle. But, if that doesn’t appeal, all hope isn’t lost. Instead, you need to look at what raises insurance price and ensure you steer clear of those red markers. To help you, we’re going to look at a few of the things which could boost the cost.
Age
Sadly, there’s nothing you can do about your age. But, this is a huge indicator of how much your insurance will cost you. There’s no getting around the fact that younger drivers face higher premiums. In a sense, it can seem like an injustice. But, you have to approach this from an insurer’s point of view. At the moment, you’re an untested liability. The younger you are, the less experience you have, and the higher risk you pose. Not to mention that a shocking amount of accidents are caused by younger drivers. A 17-year-old driver with a P1 licence is four times more likely to be involved in a fatal crash than someone over 26. With statistics like these, can you blame companies for charging above the odds? In all honesty, all you can do in this instance is grin and bear the expense until you’re a little older. It’s also worth sticking with the same insurance company and proving your worth. If you don’t have to make any claims, you can be sure that your premium will come down over time. Having to claim insurance in the first year, however, will result in even higher premiums. And, that’s an incredibly tricky cycle to get out of. So, drive carefully whenever you go out. If not, it’ll cost you in a significant way.
Vehicle
One thing you can do something about is the vehicle you choose. This, perhaps more than anything, will indicate how much your premiums are. If you go out and buy a Volkswagen Golf GTI, you can be sure that you’ll pay a lot, and not just for the car. By comparison, a more family friendly option such as the Subaru Outback, can ensure you face much friendlier premiums. This is the case for a few different reasons. For one, the vehicle you choose can indicate the type of driver you are. If you’re after the fast car, it’s no wonder your insurance company sees you as more of a risk. By comparison, a family driver is less likely to go wild. The features included in your car also dictate your insurance costs. If, like the Outback, your vehicle has features such as the EyeSight Driver Assist, your insurance will come down. If no security features are present, you can kiss goodbye to your money.
Times of use
Of course, the above points are fairly obvious. Everyone knows that these things impact your insurance prices. But, you may not realise that even things such as the time you drive can affect cost. If you commute during rush hour every day, you could end up paying a lot more. By comparison, someone who only drives when the roads are quiet will have things much easier. But, in an age where nearly two in three of us drive to work, this could be a real issue. What can you do about it? Well, for one, it’s worth considering whether your commute is cost effective. Include insurance price and fuel costs, and compare those with the rate of public transport. It may be that hopping on the train would be better for your budget. And, doing so would ensure your insurance falls. If that’s not an option, all you can do is attempt to save money in other areas. If you have a sports car and a long commute, you’re sure to feel the sting.
Type of use
Insurance companies are also interested in the type of use your car gets. Understandably, those with car-related jobs, such as taxi drivers, face much higher premiums. This is because of the amount of time you’ll be spending on the roads. Not to mention that the fast nature of such jobs could leave you open to more accidents. It may seem harsh, but it’s a reality we all have to face. Increased risk factors mean increased costs. Again, weigh up whether the expense is worthwhile. If your whole pay packet goes on insurance, you’re effectively working for free.
The company you choose
And, of course, the company you choose also impacts the costs you face. Many insurance companies specialize in specific areas. Some are specifically for young drivers, for example. Others will offer discount prices for those who use vehicles for work. All you need to do to find such companies is research. Before settling on anything, it’s essential to gather quotes from a variety of companies. You can also use these quotes against each other to knock the price down. It’s surprising how much each company varies, so the more you shop around, the better. Pretty much every insurance company also offers a price match. So, get your bartering head on, and find yourself a good deal.
