Learning to drive a car itself can be a daunting experience and once a license is granted, finding good car insurance for new drivers can be equally as daunting.

Most insurance companies have special car insurance policies designed for new drivers. These policies are usually broken down depending on the age and sex of the new driver. For example, seventeen year old female insurance is generally lower than that of a seventeen year old male as males are considered higher risk, especially in that age bracket.

Being a new driver means that there has been no past history between the insurance company and the motorist. Therefore new drivers are at a disadvantage as the insurance company cannot estimate whether the driver is high risk and may have a high number of claims or a low risk driver with a low amount of insurance claims. This history is usually related to a ‘no claims bonus’ whereby the driver is awarded a lower premium every year that no claim is made on their policy.

Young and new driver insurance tends to be more expensive than experienced driver insurance partly because there is no claim history but also because mature drivers claim less overall.

The best method to gain lower premiums for new drivers is to drive a car in a low car insurance class. For example a 1 litre hatchback car will yield a lower premium compared to a 3 litre sports car. This is true for a driver of any age however it is more relevant to new drivers.

New driver insurance premiums can be affected by the following:

• The age of the new driver – generally the younger the person, the higher the premium;
• The amount of compulsory or voluntary excess on the policy;
• The sex of the new driver – female policies are well documented to be cheaper;
• Marital statue – generally married drivers pay less than those not married;
• Usage – some insurance policies take into account the estimated yearly mileage a car is used;
• Where the vehicle is kept – some insurers require knowing where the vehicle will be kept. For example parking a vehicle in a busy road will result in a higher premium than one parked in a garage over night;
• The level of car security – does the car have an alarm? An immobilizer? If so premiums will be lower than those that do not.

When looking for new driver car insurance, it is recommended to research various company policies as they can vary greatly. Some offer a large discount of say 50% after your first year if the policy remains claim free. Others you can start to build you no claims bonus while you are actually learning to drive.

These bonuses from insurers also vary depending on your location, however most insurance companies in different countries offer similar policies, but these will largely be based upon the local governmental rules set out in each country. In the UK for example, new driver insurance can be lowered by taking the ‘Pass Plus’ scheme which includes further driver training, while in the US there is a similar incentive from insurers offered to students for achieving good academic grades.

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