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New Driver? Here’s how to save money on your car insurance

Inexperience behind the wheel can lead to enormous premiums, but there are ways for teenagers to save money on car insurance.

Running and owning a car can be a pretty hefty cost but ±«Óãtv Radio Scotland’s Clever about Cash looked under the bonnet of the different types of insurance available for new drivers.

Car Insurance for Teenagers

Eileen Adamson discusses getting the best deal on car insurance with Dumfries teenagers.

Black boxes

Not only are black box insurance policies becoming more popular, but they also allow you to put the brakes on bad driving habits. Relying on telematics software fitted to the car, driving habits are monitored which insurance companies then base their premium against.

Mum and financial expert Eileen Adamson says comparing insurance for her three teenagers was daunting but policies with a black box came out at £800, compared to £1800 without the software.

As a named driver on the policy, Eileen loves having a black box. She knows exactly where her daughters have been, their speed, where they've been braking and accelerating harshly, and she can keep an eye on their driving skills. By monitoring all of these closely, her insurance has come down to just over £500 as a result.

However, school pupil Megan wasn’t as keen on the idea. Fellow pupils have complained that sharing a car with your parents could lead to them driving the cost of insurance up through speeding!

Parent policies

Good old dependable mum and dad. These policies are often tempting as they allow the parent to add the child as an extra driver.

Teenager Megan scoured comparison websites with her parents for viable policies. They managed to find a parental policy that didn't require a black box and charged £800 for the year (triple what she thought her car was worth!).

Fellow Dumfries teen Duncan was less fortunate, but again found a deal without a black box for just over £1000 for the year: quite a bit steeper.

However, be careful not to name your child as an additional driver when in fact they are the main user. This is potentially fraudulent and could result in the insurance company - at the very least - refusing to pay out on a claim.

Dash-cam

A dash-cam can bring the price of your insurance down and provides a good indication of how you’ve been driving. Young drivers can often be blamed for accidents, however with a dash-cam an insurer can potentially see who was at fault and shed light on what really happened in an incident.


Discover more money saving tips from our Clever About Cash team on ±«Óãtv Sounds.

  • Clever About Cash

    The team offer practical, easy to execute advice, which really makes a difference to your pocket and help teenagers get the best deal on car insurance

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