posted 4 years ago

Cheaper to insure a ‘new car’ ?

New drivers should look to buying new

Figures revealed from leading insurance broker Be Wiser show that young motorists looking to insure their first car will save money by buying new. Young drivers tend to think that an older car is the cheapest option when insuring but an old car could cost £1000 more a year to insure than a brand new supermini. 

The cheapest car for youngsters to insure at the moment is a one litre Volkswagen Up! with the car insurance costing around £3,000 a year for a 17-year-old in an average UK city. The same driver looking to insure a 20-year-old Ford Fiesta would be facing a bill of almost £4,000 with insurance premiums even higher in some parts of the country.

Stuart Jenkinson from Be Wiser said the figures show that new cars are generally the most cost effective for young, new drivers. “New cars are likely to attract lower premiums for a number of reasons, such as better security and safety systems which reduce the chances of theft or injury in the event of an incident," says Stuart. “Insurers also base their prices on how cars are driven and new cars are generally driven less aggressively than an older one.”

Be Wiser also advises newly qualified drivers to keep to cars in the lower insurance brackets and warns teenagers not to be tempted to put a parent down as the main driver on their car which is a practice known as fronting. “It’s tantamount to fraud if you’re saying you’re not the main user when really you are,” says Stuart. "If the insurance company discovers they have been lied to or misled they can refuse to deal with any claim.”

Stuart said there are a number of measures youngsters can take to keep the costs low for teenagers who put looks and performance ahead of insurance premiums: “Keep the car free from modifications and consider adding a more experienced driver to the policy which may help reduce the premium and volunteer to accept additional excesses.”

Car insurance premiums have decreased with the average price falling by more than £100 for the first three months of the year. The AA said the average comprehensive motor insurance figure was £531 at the start of 2014. This was 5.6% down on the last three months of 2013 and 16.6% down on the figure for the same period last year.