Top 9 Tips to Lower Insurance Rate for Young Drivers

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Are you under 25 and have recently bought your first car? Was you too shocked by the high insurance rate they asked you to pay? It does come as a shock that young drivers in the UAE and in general all over the world are being asked to pay as high as 11% of the car’s value in insurance premium annually to get their cars covered by insurance companies, as opposed to adults who only pay 4%. Here are a few tips to lower insurance rate.

1.      Compare the prices on different insurance policies

When you’re out to look for the ideal insurance policy for your new car, make sure you do a thorough research. Make yourself aware of all your options. Try to find a company that would offer minimum premium with comprehensive coverage. Don’t be afraid to explore before picking the perfect one.

2.      Get a defensive driving course if available

Many insurance companies get more reassured if you have some additional qualification and not just your driving license to prove your driving proficiency. If a defensive driving course is available near your area of residence, get yourself enrolled into one. The certificate may help you reduce the premium considerably.

3.      Choose a cheaper car with lesser power

Insurance firms usually steer clear of young drivers willing to get their sports cars insured with them. Let’s say, the insurance company may charge a very high premium for your Bugatti Veyron, if they insure you at all. Most companies refuse to insure supercars owned by young drivers. They have good reason for that; the majority of accidents in the Middle East are caused by drivers aged between 18 and 25.

4.      No modification

If your car is heavily modified, it is evidence that you will be careless with your driving. Insurers believe the risk is high when you are driving a modified car as you would want to achieve the top speed, which can be above 300 km/h. A car in its original form shows that the owner, although young, is not a rash driver.

5.      Stay loyal to your insurance company

Loyalty is appreciated by every insurance company there is. If your family owns multiple cars, get all of them insured by the same firm. Loyalty can get you discounts on your premiums.

6.      Get past the first year with no claims

If you drive carefully during the first year of your insurance plan, it gives the insurer confidence that you are a safe driver. This in turn convinces them to lower insurance rate.

7.      Get only third party insurance

If you can’t afford full comprehensive insurance for your car, you could always opt for third party insurance; which means that in the event of an accident where you are to blame, the company pays for the repairs of the other vehicle involved but not your own. This type of insurance has premiums much lower than the full insurance that most people prefer.

8.      Increase your car’s security

If you can convince your insurer that your car is secure, they give you discounts on the premium they charge. Install security and tracking devices in your car. Also park the car in a garage at night, where it’s much safer than being parked on the road during the night. You would be surprised how these seemingly small measures make insurance firms give you the discounts that you want.

9.      Restrict your mileage

Last but not the least, prefer bicycle or walking wherever possible; this helps restrict the annual mileage of your car. The less you drive annually the lower is your premium. Some firms even consider high mileage as a factor to resist paying out in the event of an accident.

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