If you’re a younger driver under the age of 25, you may be finding it hard
to get a cheap deal on your Van insurance.
Shopping around and comparing deals is crucial if you want to save money. Although younger drivers
typically experience
higher premiums, we’ll explain the reasons why and guide you through the steps you can take to help
lower your premium.
Why do young drivers pay more for insurance?
When calculating insurance premiums, it all boils down to risk. If you
present a higher the risk, there’s more chance of
the insurance company having to pay a claim. Unfortunately, younger drivers fall into one of, if not
the most high-risk
category when it comes to insurance.
Statistically speaking, 1 in every 4 Van drivers aged between 18 – 24 is involved in an accident
during their first 2
years behind the wheel. That represents 23% of all motorists. Since the insurance company will be
well aware of these
stats, your going to see a rise in your premium as a direct result of your age.
When further understanding why Van insurance for young drivers is so expensive, you’ll also need to
consider a number of
additional factors that play a role in calculating risk, and therefore price. Unfortunately, as a
young driver, you’ll
be penalised heavily if you fall foul of the law or have any previous claims.
Previous Claims
Besides age and how long you’ve held your licence, the insurance company is also going to
look at your driving record.
If you have previously made claims or had claims made against you, this will effect your
ability to build up a no claims
bonus and will have a negative effect on the price of your premium.
Driving convictions
If you have been convicted of a driving offence, regardless of the severity, your going to
pay the price with a higher
premium. Any points you receive as a result of a driving conviction will remain on your
licence for between 2 and 6
years. These will need to be declared when taking out insurance for the first time or during
your renewal for the entire
time they remain on your licence. Convicted drivers are generally seen as higher risk and
the premium will be effected
accordingly.
Where you live
Insurance companies will use your address along with national crime statistics to determine
if you live in an area which
presents high risk of theft. In many cases, you can help reduce the risk of theft or damage
by parking on a driveway, in
a garage or in another secure off-road location.
Your Van
The type of Van you drive will play a big role in the cost of your premium. Vans with bigger
engines are statistically
more likely to be involved in an accident. As a young driver, you should choose a Van that
falls into a low insurance
group and should avoid modifications to the vehicle.
Level of cover
The cost of your premium will be effected by the level of cover you choose. Third party only
is the cheapest way to
legally drive on the road but comes with a number of downsides in terms of how well you’re
protected. Fully
comprehensive on the other hand offers the best all round protection but comes a higher
price.
What the best level of cover for a young driver?
Drivers of all ages will have access to three main levels of cover when it
comes to Van insurance. The type of cover you
choose will depend on your individual circumstances and more importantly, your budget.
Depending on what you plan to use the Van for, you should always carefully consider if your
insurance policy is adequate
in the event you need to make a claim. If you are insuring a Van for business use, you’ll want to
limit any potential
loss of business or financial burdens from having insufficient cover.
Third Party Only
This will undoubtedly be the cheapest option and its only natural that younger drivers will
be attracted to this type of
policy. However, its worth noting that should you have an accident, you wont be covered for
repair or replacement of
your Van. This could have severe financial implications if you reply on your Van for work.
Third Party, Fire & Theft
As a middle ground insurance policy, third party fire and theft ensures you’re covered in
the event your Van is stolen
or damaged by fire. You still wont be covered for repairs or vehicle damage caused from an
accident.
Fully Comprehensive
This type of policy ensures that your Van gets repaired or replaced following an accident,
regardless of who was at
fault. As a result, comprehensive young driver van insurance policies tend to be more
expensive but provide total peace
of mind from both a business and a financial standpoint.
How can young drivers save money on their Van insurance?
With the statistics mounting against you, you may be feeling like there’s no
hope of ever getting a good deal. While
there may be many things out of your control, there are some steps you can take to help reduce your
premium while
ensuring that you build a good history for future renewals.
Compare, compare, compare!
Some insurance companies are specially geared up for young drivers, while others will look
to periodically change their
target demographic to diversify the overall risk of the company. The only way to know which
insurance companies are best
for young driver Van insurance is to compare quotes with vaninsurance.co.uk. You’ll get
instant access to exclusive
deals designed specifically for younger Van drivers.
Look to lower your insurance group
As a young driver, you need to look at the cheapest Vans to insure. Buying a Van with a
lower insurance group is the
easiest way to getting a cheaper quote. Aim for a newer Van with a smaller engine and
vehicle payload and you’ll soon
see your quote drop.
Increase your Voluntary excess
Younger drivers will typically already have a high compulsory excess so you should always
make sure this option is
affordable. An excess is the amount you need to pay to the insurance company before they
will process a claim. Since
increasing the voluntary excess means you’ll be paying more upfront in the event of a claim,
your likely to see a small
cost saving.
Don’t modify your Van
From an insurer’s perspective, anything that increases the risk of accident or theft is not
going to do you any favours.
Modifications that alter the performance or looks of your Van should be avoided at all
costs. Its also worth noting that
failure to declare your modifications to the insurance company could void your policy and
land you in serious trouble.
Add a named driver
Adding an older driver with a clean licence and good history can actually help bring down
the cost of insurance for
young drivers. Any named drivers will, of course have to actually be using the Van on a
regular basis.
Consider a black box
Black box insurance for young drivers is still a fairly new concept but can
help lower your premiums, especially if have
a less than perfect driving record. A black box monitors how well you drive including your
speed, how long you spend on
the road and what times of the day you drive. If you drive like a saint, this will help
lower the cost of your insurance
however, if you fail to drive sensibly, you could actually increase the cost of your
premium.
Drive safely and reduce your future premiums
So, there are a lot of aspects that will influence the price you pay for Van
insurance as a young driver, especially
during your first couple of years. Mistakes you make now could hider your progress to getting
cheaper van insurance in
the future. If you take on board some basic safety advice and drive carefully on the roads, you’ll
be one step closer to
a better deal further down the line.
Don’t break the speed limit
Driving over the speed limit can endanger your life and that of other road users and
pedestrians alike. Getting caught
speeding by one of the few million speed cameras in the UK could land you 3 points, a fine
or a driving ban. You’ll be
paying the price for this on your insurance renewals for years to come.
Get a hands-free kit!
Using your mobile phone while driving is now punishable with 3 penalty points and a large
fine. There is no excuses for
it, and you could be putting yourself and other road users at risk. Don’t take a chance,
install a hands-free kit if you
absolutely must use your phone while driving.
Wear your seatbelt
Again, driving while you or your passengers are not wearing a seatbelt can land you a fine
along with a few points
endorsed on your licence.
Driving whilst under the influence
This should be a no brainer. Yet still the UK see tens of thousands of prosecutions every
year for drink and drug
driving offences. If you get caught driving under the influence, your insurance premium
rising will be the least of your
worries. You could be imprisoned for this offence, especially if you caused injury or death
to a third party in the
process.
**Remember, get 6 points in your first 24 months of driving means
you lose your licence. You’ll have to retake your test
and you’re insurance company is going to weigh in heavy on your premium once you’re allowed to
drive again. You could
lose your job or your income. Drive safe, obey the law, and continue to benefit from cheaper
insurance deals.**
