Young Car Insurance – Newly Qualified Drivers Urged to Build Up No-Claims Discount

The ability to compare, click and save money on young car insurance policies means that loyalty between UK motorists and motor insurance providers is minimal. However, one auto insurance expert has commented on the financial merits of sticking with one insurer to build up a no-claims discount over a number of years.

It is widely regarded that young car insurance is a very costly experience for newly qualified drivers, but there is a feeling that these drivers are no more dangerous on the roads than young drivers 20 years ago. So why are young drivers now forced to pay extortionate premiums?

Co-founder of insurance firm Young Marmalade, Nigel Lacy, believes that the heightened competition and clamour for motor insurance customers means that drivers are unable to build up a required level of trust with an insurance broker.

Mr Lacy said: “There is nothing wrong with switching (car insurance), but loyalty has now gone through the windscreen. The insurer now has as little as one year’s premium to recover the risk profile for an individual driver, so it has to increase the price in an attempt to balance the books.”

Another growing concern for young drivers is that the high cost of a UK car insurance policy means that drivers have less money to spend on the vehicle itself, subsequently purchasing cheaper vehicles that require more maintenance with sub-standard safety features.

At the end of the day it pays to sit tight and ride the storm with one UK car insurer to build up a lengthy no-claims discount as soon as possible.

Mr Lacy concluded: “There is no substitute for claim-free years under the belt to bring premiums down to sensible levels and the quicker the young driver can achieve that, the better.”

Tips to Prevent Car Theft

Almost 13 000 cars stolen in the Western Cape

According to crime statistics for the Western Cape, released by the South African Police for the period 2005/2006, there were 965 cases of carjacking and a further 12 795 cases of motor vehicle or motor cycle theft and these were the reported cases.

Safeguard your investment, follow the tips

It’s therefore crucial each and every one of us follow a couple of sensible rules and suggestions made by car dealers, police and vehicle tracking companies after buying a new or used car.

  • Never leave valuables in plain view in your motor vehicle, it’ll obviously increase the desirability of the car and even if the criminal doesn’t steal the entire car, they’re likely to smash the windows to gain access
  • Never hide a second set of car keys in the vehicle, they will inevitably be found in the case of a break-in. All thieves generally do a detailed search for any valuables and will be elated with their find. Remember your insurance company won’t be too inclined to pay out should your car be recovered by the police without any obvious signs of breaking and entering
  • Here in Cape Town we are obviously a lot more conscious of the rising tsunami of car theft and other crime but nearly 50% of vehicles stolen in the United States have been left unlocked whereas 18%-20% had their keys left in the ignition – not a smart move!
  • Always remember to close your car windows completely when leaving it unattended. It’s very easy to gain access when the windows are slightly ajar
  • It’s also a good idea to replace T-shaped door locks with straight locks. The T-shaped lock will aid and abet car thieves who are able to use a variety of tools, or even a piece of bent wire, to grab and pull the lock up
  • Park in well-lit areas where car guards abound. It’s been proven these men and women not only act as deterrents but, in the case of car theft, are valuable witnesses as well
  • Never leave your car running, even if you are gone for a couple of minutes. It’ll literally take thieves a split second to make off with your car and you can’t really expect petrol attendants or other observers to safeguard your property
  • After buying a new or used car ensure you have adequate safeguards in place. Although most insurance companies insist on immobilisers or gear locks, it could be a good idea to invest in vehicle tracking as well.