Young, teenage or inexperienced drivers often feel they get a rough deal with motor insurance policies. You generally have a low or no income and these insurance companies want to take what little money you have to pay for an intangible product.

The fact is that motor insurance is a legal requirement, but a high premium isn’t.

Now assuming you have passed your driving test, you have your first car lined up, what do you do next?

The mistake many young motorists make is going straight to the insurance company that their parents have a policy with. Now, unless your parents have a hell of a lot of clout with the company in question, this can be a bad idea. An insurer that suits a driver in their 40s or 50s may be totally unsuitable to a driver just starting out.

Instead, your first start should be the internet (as you have probably realised as you are reading this!). There are many insurers or insurance brokers, trading online, who specialise in young drivers insurance and may be able to find an insurance solution that suits you.

Also, there are many specialist brokers in the traditional marketplace who specialise in young drivers insurance and who will be able to consult you.

So the conclusion? Shop around.

Your next decision should be on what cover you take out.

All motor insurance polices available to young drivers will provide cover for damage to “third parties” – these being any person or property damaged or injured as a result of an accident for which you are found to be at fault.

Comprehensive Insurance (or “fully comp”) provides cover for accidental damage to your own vehicle together with cover for fire and theft damage. Whilst reassuring, it is the most expensive cover and, when coupled with the large policy excess a young motorist will have to pay (sometimes as much as £500), its benefits may not justify its cost.

Third Party Fire and Theft insurance is a more attractive proposition. It is much cheaper than Comprehensive as it only provides cover for fire and theft damage to your vehicle. Often, theses policies do not carry an excess.

Third Party only insurance is the cheapest of the lot. It purely provides cover to comply with your legal requirements. If you have a high performance vehicle or a poor driving record then this may be your only financially viable option.

WARNING

Don’t be tempted to allow a family member to insure your vehicle in their name with you as a “named” driver when the intention is that you will be the main user. This is called Fronting and it will allow your insurer to avoid any claims made, leaving you and any family member you have roped into this scheme in big financial trouble!

Will my Premium Always be High?

As you age and have years of claim free driving, you will accumulate a “no claim bonus”. This means that a motor insurer will discount your premium for every consecutive year that you don’t make a claim, up to around 65%.

This coupled with the premium reduction due to your age and (hopefully) clean licence will ensure that high premiums for young drivers insurance will soon be a memory.