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How the under-21s can slash their car insurance

Drivers under 21 are by far the most likely group to have a car accident and so pay the most for their car insurance. But even the youngest drivers can slash their premiums if they follow some simple rules.

Leading car insurer Admiral has compiled a list of tips for motorists under 21 so they can cut their annual car insurance by up to 47%. They have compared the annual premium for a range of 18, 19 and 20-year-olds before and after following these tips. The biggest saving was £1,008.

Admiral managing director, Jane Stone, said, "Unfortunately, young drivers do have more accidents than any other group and so have the highest premiums. They are also the least able to afford high insurance costs so hopefully by following our suggestions they can save themselves, or their parents quite a bit of money."

Admiral's tips are:

• Take a voluntary excess. By having a higher excess than the standard, young drivers get a reduction in their premium.
  
• Keep your mileage low and limit the use. The average mileage is 12,000 miles a year, but very few 18-year-olds drive that far. Tell your insurer if you drive less than the average.
• Increase the security on your car. Insurers prefer prevention to claims and cars with alarms and immobilisers are less likely to be targeted by thieves.
• Get a Pass Plus driving qualification. Many insurers offer a discount for drivers who have passed this.
• If you have an older car consider a Third Party, Fire and Theft policy.
  

Here are table showing examples of teenage motorists and how much they cut their premiums by following Admiral's suggestions:

18-year-old male living in London SW20, driving a Peugeot 206 LX 1.4.

18-year-old female living in Worthing BN44, driving a Rover Mini Cooper Sport 1.6.

19-year-old male living in Coatbridge ML5, driving a Ford Focus CL 16v, 1.6.

19-year-old female living in London SW20, driving a Renault Clio RN 1.6.

20-year-old male living in Worthing BN44, driving a Vauxhall Astra CD 1.6.

20-year-old female living in Coatbridge, driving a Citroen C3 Exclusive 1.6.

Although insurance for under-21s is not cheap, Admiral's figures show how experience soon brings annual premiums down. Jane Stone, continued, "Motorists with a few years' experience soon benefit from lower premiums. Most of the drivers in our examples will pay far less by the time they are 24. In fact at today's rates, with full no claims bonus, they would all pay just a few hundred pounds."

Issue date: 17-06-03