New Driver Insurance
New Driver Insurance - The Basics Explained
Congratulations after all those driving lessons, and the hours spent practising you have just passed your driving test. Now it’s time to get out on those roads unsupervised and enjoy being able to drive yourself from place to place without the need to be accompanied. Before you do though it is important to make sure that you have the appropriate insurance in place; you don’t want to have to stop driving before you have even really started. Car insurance, especially the first policy you buy, can be a bit daunting but here are just a few of the basics explained to help you.
Car insurance types
When it comes to choosing the type of insurance that is right for you there are just 3 types to choose from:
Third-party only – this type of insurance covers you against any damage to other people, cars or property, nothing else
Third-party, fire and theft – this covers your car is it is damaged in a fire of stolen in addition to the benefits provided by third-party only
Comprehensive – this cover the benefits of the other 2 types of insurance and also covers your car against damaged caused by an accident
It is important to remember that a comprehensive policy covers your car for any damage that may occur in the event of an accident, either minor or major, it does not however cover and damage that occurs to your car as a result of general wear and tear.
Picking the right policy for you as a new driver
It is important to shop around when you are looking for an insurance policy, as prices could vary considerably. Make sure that you are comparing like for like to get the most accurate comparison. Whilst your budget might be a big factor in the type of policy that you choose remember that unless you have comprehensive insurance you will end up paying out quite a bit is you damage your own car.
There are a couple of things to consider:
- Whilst monthly payments might suit your budget more they could end up costing you up to 30% extra so you should consider what type of payment options you can afford
Don’t add anyone to your policy who won’t be driving your car; additional drivers don’t always make a policy cheaper
There are plenty of online tools for calculating your mileage; use one to help you make the most accurate estimate you can for your insurance
No claims bonus
As a new driver, you will not have built up any no claims bonus; drive sensibly, and within the speed limit and make sure you pay attention to the roads. Avoiding having an accident will help you to build up your no claims bonus which will count for you each time you need to renew your car insurance.
Driving and all the associated costs of owning your own car can be expensive; do not be tempted to drive without getting the appropriate insurance. Not only is this an offence that is currently being clamped down on but there are also steep penalties in place for those people caught driving without insurance; fines, prosecution or even the seizing and destruction of your car.