Young motorists facing big premiums for their car insurance should consider
buying an older car. If they do they could end up paying between 10% and
40% less for their insurance.
The advice comes from leading insurer Admiral who compared the cost of
insuring new and older versions of the same cars and discovered that the
premiums were much lower for the older cars.
Drivers under 25 traditionally pay the most for their insurance as they
are involved in the most road accidents. Admiral checked the cost of insuring
the 3 most popular cars for male drivers under the age of 25 with a host
of insurance companies. The prices varied hugely between the companies
and the premiums tumbled once the cars quoted became more than 4-years-old.
Admiral discovered that young motorists could cut their premiums by up
to 40% by choosing an older version. The tables below shows the cheapest
quotes available for two young drivers trying to insure three different
cars at different ages:
23-year-old male bank cashier living in Woolwich with 4 years no claims
bonus
| Year of manufacture |
VW Golf GTI 2.0 |
Ford Fiesta Zetec 1.6 |
Vauxhall Astra SRI 16V 1.8 |
| 2003 |
£1182 |
£673 |
£930 |
| 2000 |
£823 |
£511 |
£726 |
| 1998 |
£696 |
£413 |
£629 |
| Total Saved |
£486 |
£260 |
£351 |
21-year-old male accountant living in Edinburgh with 2 years no claims
bonus
| Year of manufacture |
VW Golf GTI 2.0 |
Ford Fiesta Zetec 1.6 |
Vauxhall Astra SRI 16V 1.8 |
| 2003 |
£1264 |
£767 |
£981 |
| 2000 |
£900 |
£559 |
£757 |
| 1998 |
£824 |
£495 |
£668 |
| Total Saved |
£440 |
£272 |
£313 |
Admiral managing director, Jane Stone, said: "Older cars are cheaper
to insure than new ones for a number of reasons. Obviously they are less
attractive to car thieves, but they are also cheaper to repair.
"If you are under 25 and finding your premiums too high, why not
consider trading your car in for one a bit older. Not only will it cost
less money, but you should see your premiums drop too. You can always
buy a new car when you reach 25 and your premiums drop considerably."
Admiral has other suggestions for young motorists to cut their premiums.
These include taking a voluntary excess higher than the standard one,
increasing the security on your car and getting a Pass Plus qualification.
But the most important rule to saving money on your insurance is to shop
around. Jane Stone, said, "During our research we discovered a huge
difference in premiums between different insurers. Some companies prefer
drivers under 25, insurance with these companies could be half as much
as with another. Contact as many companies as possible and compare the
quotes to find the cheapest."
Issue date: 02-02-04
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