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Car Insurance Tips For First Time Buyers

By: Mark Bartley

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Newly qualified drivers and those who need to insure themselves for their first car will usually have to consider the cost of insurance as one of the biggest factors when choosing a vehicle. You may have some driving experience as a named driver on someone else's insurance policy, and although age does have an effect on the price of car insurance, as a first time insurance buyer you will need to choose your car carefully in order to get the best deal. So it's important to consider what type of car you should buy when looking at insuring yourself for the first time.

Statistics show that new drivers are more likely to make a claim than older or more experienced drivers, and therefore your first car insurance policy is likely to be more expensive. Costs can vary between each insurance provider, so by shopping around you can potentially save a significant sum of money. The amount you will pay is usually determined by the type of car you have, where it is kept, what it will be used for, who will drive it and the type of cover you need.

It's best to consider a small car with a smaller engine size and without modifications. Lower performance cars are regarded as safer by insurers and therefore cheaper to cover. Don't assume an older car could save you money, though. As they are more likely to break down the insurers are likely to charge you more. If you keep your car in a garage or on a private driveway then this will help bring the costs down. Using the car just for leisure and getting to work will mean a cheaper policy than if you plan to use it for a business, while adding over drivers' names to the policy will increase the cost.

How to budget for your first car insurance
Getting insured in your own name is preferable to adding your name to someone else's insurance. It might be cheaper but in the long run you're better off having your own insurance policy as that way you can start building up a no claims bonus. The no claims bonus means that for each year you do not make a claim on your insurance, the provider will give you a discount on the cost of your policy. Especially with younger drivers, there is a temptation to modify your car. Adding extra power and expensive parts will affect your policy, and apart from it being essential to tell the insurer about the changes, you are likely to find the premium will be increased considerably. Getting your car fitted with security devices and making sure it is kept in a safe place at night will also help your insurance budgeting.

The Pass Plus Course is aimed at new drivers and builds on the driving test to ensure new drivers get more training and therefore more competent over time. Completing the Pass Plus course could mean up to a 30% saving on the cost of your car insurance.

Shopping around
As with all types of car insurance, first time buyers should shop around when looking for the best deals. There are some easy to use comparison sites online that will give you the opportunity to compare a range of covers and prices that will help you find the policy that is right for you. But no matter how much you shop around, insurance companies always rate different cars according to size and power, and so your choice of car is the most important decision affecting the overall cost of your policy.

Article Source: http://depositarticles.com/

This article, compiled by Mark Bartley, is one of a number focused on car insurance. The information within it will prove helpful for anyone trying to understand car insurance products.

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