Are you looking for a guide on how to reduce your vehicle insurance premiums as a young driver? Look no further. The cost of living is sky-high and rapidly climbing every day; you don’t need vehicle insurance to be another thing that breaks the bank.
With high housing costs, endless grocery lists, and the occasional emergency that needs financial intervention all fighting for your wallet’s attention, there simply isn’t enough money to go around. And we haven’t even mentioned the rising fuel costs!
Getting a good deal on your car insurance premiums is a must
Being a young driver means your insurance premiums will be higher than the seasoned veteran, simply because you are less experienced. Your insurance history is not extensive, which makes you a higher risk to an insurer.
But worry not; there are several ways in which you can decrease your vehicle insurance premiums and save money for the significant ‘stuff’.
These five simple tips will provide clarity and insight into how best you can decrease your vehicle insurance premiums as a young driver:
Simple tip no.1: Choose a fair and trustworthy insurer
- The tip: Go for an insurance company that offers fair and affordable car insurance premiums.
- What it is: Opt for an insurer that is transparent in the pricing and isn’t aiming to make a profit from the premiums paid at your expense.
Pineapple offers a profit bonus system; the premiums paid are used to settle claims, and any amount left over is returned to the client as reward points. These can be used at any of Pineapple’s chosen partners, namely Takealot, Sorbet, Uber, and Uber Eats, just to name a few.
- Why it impacts the cost of the premium: Different insurance companies offer different rates, so shopping around can help you find the best deal. Make sure you steer clear of profit-driven insurers that aim to make a quick buck out of you without offering you decent premiums.
Simple Tip no.2: Buy a car with lower insurance premiums
- The tip: When considering buying the car of your dreams, keep the car's repair costs and safety record in mind before making the purchase.
- What it is: The cost of insuring a particular make and model of a car and the year of your vehicle. You save money on your insurance costs by choosing a car with lower insurance premiums. To further decrease your premiums, consider purchasing a car with features such as SVR (Stolen Vehicle Recovery) capabilities. This option can also help to lower your insurance premiums.
- Why it impacts the cost of the premium: Cars that are cheaper to repair or have a good safety record may have lower insurance premiums, thereby decreasing your premiums. For example, sports cars and other luxury vehicles are more expensive to insure because of their expensive price tag. Plus, they are more prone to theft.
Simple Tip no.3: Increase your excess
- The tip: Consider the trade-off; the higher your excess, the lower your car insurance premium.
- What it is: Excess is the money you must pay out of pocket before your insurance coverage kicks in. This amount is usually small in relation to the claim and protects the insurance community from over-claiming for minor incidents.
- Why it impacts the cost of the premium: Insurance companies use your excess to manage the risk associated with insuring you as a driver. So, a higher excess means you will pay more out of pocket if you need to file a claim, meaning you are taking on more of the risk yourself. But it will also result in lower premiums, reducing your monthly car insurance premiums.
Simple Tip no.4: Maintain a good driving record
- The tip: Try to maintain a good driving record by avoiding unnecessary tickets, causing accidents, or frequently claiming.
- What it is: Have a relevant record of your driving history, including any tickets or accidents you may have been involved in. It is important to be upfront about your history and past claims, as any inaccuracies or undisclosed information can be seen as fraud and negatively affect your claim process.
- Why it impacts the cost of a premium: A good driving record helps show insurers that you are a responsible and safe driver who does not frequently cause numerous accidents or claims, which may result in lower premiums.
Simple Tip no.5: Park your car in a secure structure (e.g. a garage)
- The tip: Park your car in a garage or secure location can help reduce your vehicle insurance premiums.
- What it is: The location where you park your car is one of the many factors that can impact your vehicle insurance premiums.
- Why it impacts the cost of a premium: Parking your car in a high-crime area or an area prone to natural disasters increases the likelihood of a claim being filed. Therefore the insurance company will charge a higher premium to cover the increased risk.
Additional tips that can help you in your quest to decrease your car insurance premiums go as follows:
- Usage-based insurance programmes: Insurance companies, e.g. Pineapple, offer programmes that track your driving habits and offer discounts based on that information. With Pineapple, the programme is a benefit called Drive Less, Get Blessed (DL, GB) and rewards clients with an automatic refund every month that they drive below 300km.
No risk is associated with this benefit, and you are not forced to compromise on your cover to get your discount. And if that isn’t enough to knock your socks off, this certainly will; the benefit is applied per vehicle (should you insure more than one vehicle).
So, this helps reduce your vehicle insurance premiums on multiple cars and save too, plus it comes at no extra cost to you! With the money saved, you are free to spend it on the things that matter, and with the cost of living increasing every day, that is a worthwhile investment.
- Building up your insurance history: The sooner, the better! The longer one has had an insurance policy in their name, the better, as this shows the insurer that the person is a reliable risk, and there is data to support this.
This action is further strengthened by a client's ongoing, uninterrupted insurance coverage. So, although those initial car insurance premiums and quotes might be offputting, you have to start somewhere.
- Your licence and the story it tells: Before taking up insurance or even buying your dream car, the first thing would be to have a valid driver’s licence. If you have a history of fraudulent claims, extensive claims history or a licence suspension, your insurance premiums may be higher because you are considered a higher risk to insure.
After that, the other important thing would be the code your licence holds. The code can and does affect your monthly car insurance premiums.
For example, if you have a code 8 (B or EB) driver's licence, you may be eligible for lower insurance premiums. The driving test for obtaining this licence code is more complex. You are a more capable driver than someone who holds a code 10 (C or EC) or a code 14 (C1 or EC1).
- Tighten up your belt: Cut down costs by avoiding unnecessary spending. That means staying home instead of frequent trips about the town or staying in and cooking a nice home-cooked meal instead of ordering or getting takeaways.
Being a young driver has its trials and tribulations, and insurance should not be one of those. Following these steps can reduce car insurance premiums and save money on monthly premiums. That way, you can avoid being a voluntary hitchhiker, all in the name of saving.
So, “Don’t panic.” - Douglas Adams, The Hitchhiker’s Guide to the Galaxy. Getting the right car insurance has never been easier. Get a quote by pressing a few buttons.
Save that thumb from hitchhiking; use it to get a quote today. Let Pineapple be your guide to low premiums and monthly savings.
Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply. Premium is risk profile dependent.
Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.
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