Car insurance for 17 year olds

The cost of car insurance for 17 year old drivers was already high, but average car insurance prices have jumped by a staggering 64% over the past 12 months, according to the AA's latest British Insurance Premium Index. The average premium for a driver between the ages of 17 and 22 is now £2,431. Men pay more than women: the typical premium for a young man is £3,052 compared with £1,767 for a young female motorist.

Young people often spread the cost of insurance by paying their premium by monthly direct debit. Monthly installments can be convenient, but there is usually an extra charge, so make sure you understand the fees involved.

The high cost of car insurance for 17 year olds makes it all the more important to shop around for a good deal.

Why are premiums for young drivers so high?

Insurers push up premiums if they judge that you are more likely to make a claim on your policy. Unfortunately, statistics show that young drivers make more claims than older motorists.

Teenage drivers are ten times more likely to be killed or seriously injured in crashes than drivers aged 35 or over and, while the number of collisions on Britain's roads is falling, young drivers account for a growing share of the total. Many insurers simply refuse to cover young drivers because of the high risk of costly claims. This explains why the insurers who do actually provide car insurance for 17 years olds set such high prices.

Does a 17 year old need their own insurance policy?

If you are the owner or main driver of the car, the policy must be in your name. It is illegal to insure your car in your parents' name and put yourself down as a named driver - a tactic known as fronting.

However, if you occasionally drive your parents' car, they can legally add your name to their insurance. It will push up the price, but it will probably be cheaper than a separate policy, and therefore one of the cheapest options when it comes to buying car insurance for 17 year olds. Bear in mind, though, that if you piggyback on your parents' insurance you won't be able to build up a no claims discount (NCD).

What is a no claims discount?

Insurers reward drivers who don't make claims with a discount on their premiums. A NCD can prove extremely valuable. If, for example, you don't make a claim for five consecutive years you could knock up to 70% off your premium.  

Should I buy comprehensive cover?

Many 17 year olds on a tight budget choose third party, or third party fire and theft instead of comprehensive cover, especially if their car isn't worth a lot of money. Third party insurance is the minimum legal requirement and it covers damage or injury to another car or person. It will not pay out for any damage to you or your own car. If you add fire and theft, you are also insured if you car is damaged by fire or stolen.

A comprehensive policy covers your car against any damage in an accident. It can also include a range of other benefits, such as a courtesy car and breakdown assistance.
 
Third party insurance is usually cheaper than comprehensive cover, but you should think very carefully before you opt for the minimum requirement. In the event of a claim, you could spend a fortune on repairs to your own car.

Consider pay as you go insurance

If you only drive occasionally, you might want to consider temporary car insurance for 17 year olds. You don't pay an annual premium but renew the policy month by month, a bit like a pay-as-you-go mobile phone. You can therefore 'switch off' the cover if you don't need it. Short term car insurance for 17 year olds could actually work out as the cheaper option because you would only be paying for cover when you actually use the car, but always read the small print because the policy might not allow you to build up a no-claims discount.

As well as offering temporary car insurance for 17 year olds, a number of firms also offer pay-as-you-drive cover, using new technology to drive down the cost of premiums. They will fit a 'black box' to your car to track your movements and driving habits. Motorists who drive fewer miles or who avoid rush hours and night time driving will usually pay a lower premium. If you are prepared to restrict your driving to 'safer' times, a black box, pay-as-you-drive policy can make all the difference to a 17 year olds car insurance premium.

Tips for cheaper car insurance

• Drive carefully. You will pay less for your car insurance if you have a clean claims record. Any convictions for speeding or other motoring offences will also push up the cost. 

• Insurers don't like boy - or girl - racers. So choose a car with a small engine and no modifications. You can get details of the various car insurance groups on the website of the Association of British Insurers .
• Security devices such as car alarms and immobilisers can help to lower premiums if they are approved by the insurer. It also helps if you can keep the car in a locked garage when not in use. 
• Consider taking the Driving Standards Agency's Pass Plus course, which gives extra tuition on night, motorway and inner city driving. Insurers and brokers can offer substantial discounts - sometimes as much as 35% - to newly qualified drivers who have completed the course. Pass Plus takes around six hours and can cost anything up to £150. 
• Many insurers will offer a discount if you add a more experienced driver, such as a parent, to the policy. But remember that it's illegal for your mum or dad to put the policy in their name if they are not the main driver.
• Car insurance policies include a standard excess, which is the amount you must pay towards each claim. If you are happy to pay a higher excess, you will be rewarded with a lower premium. But don't set the excess so high that you could not afford to pay in the event of a claim.

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Car insurance for new drivers

However old you are when you past your driving test, your first car insurance policy is likely to be expensive. Often, policies for new drivers cost more than their actual cars.

Car insurance is a legal requirement in the UK, so - as cover is not optional - there are steps new drivers can take to find the cheapest possible car insurance.
A great place to start is our comparison tool which will help you to compare new driver insurance quotes from more than 100 companies

What should a new driver look for in an insurance policy?
Whilst getting the cheapest possible price for your car insurance is important, ensuring you get the most appropriate cover as a new driver is equally important.
Shopping around is essential, and using our comparison tool will help you to find fair and competitive prices for your first policy.
You need to be able to rely on your insurer in the event of making a claim, and so choosing an insurer you can trust to give you an efficient service is important.

Finding The Right Level Of Cover For You

Making sure you properly assess the policy options available to you now will make things as smooth as possible should you need to make a claim later on.
There are three key elements to consider when buying car insurance for a new driver:
Type of cover - You need to decide on either third party only, third party, fire and theft or comprehensive cover. Each provides a different level of cover, so it is important you choose the most suitable.
Policy features - Some policies offer a courtesy car if yours is off the road following an accident, others offer no claims discount protection. You should look beyond what the policy costs and think about what you get for the price.
Policy extras - Additional and optional features like breakdown and legal cover will vary from policy to policy, think about what you are likely to need before you commit.

How New Drivers Can Find Cheap Car Insurance

There are many different ways to find low cost cover, like using moneysupermarket.com to compare quotes for new driver car insurance from dozens of companies.
Choosing a car with a smaller engine, which will be seen as less of a risk by insurers, will help to keep costs down.
Fitting provider-approved security equipment like an immobiliser or alarm will have an effect on your premium, as well as parking in a secure location overnight.
Driving safely and avoiding driving convictions will keep your license clean and build up your no-claims discount, making your policy cheaper in the future.

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Car insurance for young drivers

If you thought your driving test was difficult, wait until you try and buy car insurance - that's when things could start to get really tricky.

The price of motor insurance is rising rapidly. A recent report calculated that the cost of cover has jumped 40% in a year, potentially pushing many motorists off the road.

The average car insurance premium is now about £900, but the average masks some big variations. Young driver's insurance premiums are typically the highest, often topping £2,000. To make matters worse, more than half of insurance companies simply refuse to cover teenage drivers.

Don't be tempted to drive without car insurance, though. The government estimates that 1.4m motorists do not have insurance cover, but they risk a fine of up to £5,000 and six to eight points on their licence.

And if you are the main driver or registered keeper of a car, do not insure the car in your parents' name and add yourself to the policy as a named driver. Known as 'fronting', this is a form of insurance fraud that will invalidate your policy and could lead to a charge of driving without car insurance.

Why are young driver car insurance premiums so high?

Car insurance for young drivers is disproportionately high compared to the national average because they are quite simply more risky. Motorists aged between 17 and 25 are responsible for one third of road fatalities in the UK. And one in five drivers is involved in a crash during the first 12 months behind the wheel. Statistics also show that young drivers are more likely to be the victim of theft, fire and vandalism resulting in insurance claims.

 How to find cheaper car insurance for young drivers

The average driver between the ages of 17 and 21 now stands to pay in excess of £2,000 for a car insurance policy, but there are several ways that young drivers can reduce the price of their car insurance premiums.A number of firms will fit a so-called 'black box' to your car to track your movements. It sounds a bit like 'Big Brother' but it can reduce young driver car insurance premiums because you will usually be rewarded if you drive a limited number of miles and if you avoid driving late at night, when most accidents are likely to occur.

• Buy a sensible car. Every new car is assigned to a car insurance group - and the lower the group, the lower the likely premium. So, it will be cheaper to insure a Fiat Punto than an Audi TT. You can find details of the car insurance groups on the website of the Association of British Insurers .
• Don't modify your car. Insurers don't like boy - or girl - racers and modifications such as turbo charging, rally lights, nitrous oxide kits will send your premium soaring. 

•  Consider taking the Driving Standards Agency's Pass Plus course, which gives extra tuition on night, motorway and inner city driving. You can take the course any time, although it is aimed at new drivers within the first year of passing their test. The course is made up of six modules and takes at least six hours. There is also a fee of about £150, but it is often worth the money as drivers who have successfully completed the course can earn discounts on their motor insurance of up to 35%. 
•  Shop around and compare young driver car insurance quotes. But make sure you compare like with like. A car insurance policy might be cheap because it does not offer many benefits.
•  Don't assume third party insurance is the cheapest option. Many consumers purchasing car insurance for young drivers assume that third party cover will be the best value option as it is usually the cheapest car insurance you can buy. If damage another vehicle while driving it will cover the cost of the repair to that vehicle, but any damage to your car won't be covered so you'll have to pay for any repairs yourself. Fully comprehensive car insurance on the other hand, protects your car as well as any other vehicles.
  
  However, third party car insurance is popular with young drivers as they assume it is the cheapest option due to the fact it offers less protection. But because claim statistics are one of the factors insurers take into consideration when calculating premiums, the cost of third party cover can actually prove more expensive than fully comp due to the fact that a higher proportion of drivers are involved in accidents and make a claim. It therefore important to get quotes for third party; third party, fire and theft, and fully comprehensive car insurance and weigh up which will be most cost effective.
• If you are driving your parents' car, it will be cheaper in the short term to add your name to their policy. However, if you take out your own insurance cover, you can start to build up a no claims discount, which will lead to even greater savings in the future. The NCD can be valuable, reducing the cost of cover by a third after one year. You can even add an older, more experienced family member with a clean driving record to your own policy and it could cut the cost.
• You stand a better chance of obtaining cheap car insurance for young drivers if you fit additional, approved security devices, such as an alarm or immobiliser system. If you can, keep your car in a locked garage when not in use, or off the street if possible. 
• If you are prepared to pay a bigger voluntary excess, you might pay a lower insurance premium. But remember that the excess is the amount you contribute towards any claim, so it should be affordable. 

• It can be convenient to spread the cost of your car insurance over monthly installments, but it is also more expensive because you will be charged extra. So try and pay up front, even if you have to ask your parents for a loan.
  
  For more ideas on how you could obtain cheap young drivers car insurance quotes visit our money saving tips page; and if you are between the ages of 17 and 19 be sure to check out our guide to car insurance for teenagers.

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Car Insurance Guide

An introduction to car insurance

Of all the financial products owned in the UK, car insurance is one of the most common. The reason for this is simple: to drive a vehicle on the road legally it needs to be insured, and with 26 million cars on our roads, that's a huge number of people insuring a vast number of vehicles.

Most of these people are given the chance to review their policies each year, allowing them to switch to a different company should they desire based on price, and the quality of service provided. Theoretically this should mean that everyone knows everything there is to know about insuring a vehicle, but this is not necessarily the case.

Many people simply allow their policy to renew itself each year when it expires, potentially losing hundreds of pounds by not shopping around for a more competitive quote or only changing insurer when rising car insurance prices become particularly noticeable.
Unfortunately, the reverse is also true on occasion: Many people take out extremely cheap car insurance, only to find out that the policy isn't as comprehensive as they initially thought - and these people often don't find out about this until they make a claim, by which time it's too late.

Finding the right car insurance policy for you

The first thing anybody considering a new car insurance policy should do is shop around. If you're looking for the best car insurance deal, our price comparison tool allows you to get quotes from more than 100 insurance companies in the UK in order to help you find the best deal possible - but remember the cheapest car insurance policy may not necessary be the right option for you..

Knowing the ins and outs of how car insurance policies work could save you even more money, as well as making sure you are receiving the correct services and level of protection from your insurer. This guide will help you to do just that, as well as answering some common questions about insuring a car.

These questions range from the factors that affect your premium, how you can make your premiums cheaper, and what to do in the case that you need to make a claim on your policy.
The guide also contains a jargon-buster, which explains some of the terms which you may have heard but not understood when buying insurance - terms such as TPFT, fronting, and named drivers.

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Classic Car Insurance

Proud owners of classic cars often lavish their vehicles with care and attention. But do they take as much time and trouble over their motor insurance? A classic car insurance policy is often cheaper than insurance on a modern vehicle, but it pays to make sure that you buy the right cover for your prized possession.

Some enthusiasts only take their cars onto the road during the summer months. Previously they could let their insurance lapse over the winter when the car was off the road. But they could now fall foul of a new insurance law, which makes it an offence: if you car is taxed it must now also be insured. 

If you don't drive your classic car at all, you should apply for a Statutory off Road Notification. Insurance and road tax are then no longer mandatory.

What qualifies a car as a classic?

The taxman defines as a classic any car that is more than 20 years old with a minimum value of £15,000. But there is no standard definition for insurance. Some insurer's rate ten-year-old motors as classic; others insist that the car is at least 15 years old. Always check the age definition before you request a quote to make sure you have appropriate cover.

How much does classic car insurance cost?

There are a number of classic car insurance companies that cater to the classic vehicle market. Many mainstream insurers also offer classic car insurance policies. But premiums vary from insurer to insurer, so it's always worth shopping around to find the most competitive deal.

The good news is that classic car insurance quotes are often cheaper than cover for a modern car because a classic car is typically better maintained and driven less often, resulting in fewer claims.

What does classic car insurance cover?

A comprehensive policy for a classic car is broadly similar to a comprehensive cover for a modern vehicle. But there are one or two important differences.

It is not always easy to determine the true value of a classic car, so if your policy pays out the 'market value' in the event of a write off, it might not reflect its actual worth. Experts therefore recommend that you agree the value with the insurer when you take out the cover. You might have to pay a higher premium, but the policy will then pay out the agreed value if the car is a write off.

The insurer might ask for evidence of the car's agreed value, which could include an independent valuation by an expert, who will probably charge a fee. It is also a good idea to ensure that you can update the agreed value of the vehicle each year. Many vintage models - unlike modern cars - increase in value as they get older. If you don't update the value you could be left with an insurance shortfall.

You might also want to check the details of the cover for replacement parts. If your car is particularly valuable, you might want any replacements to be authentic, so make sure the insurance is adequate.

Classic cars are not usually driven as frequently as modern vehicles, so most insurers set a maximum mileage, often about 7,500 miles year. You should find out what will happen if you breach the limit one year. Is there any flexibility to change the agreed mileage, or will a breach automatically invalidate the policy?

The other big difference between classic and standard car insurance is that you do not build up a no-claims discount on classic car cover. The flat rates make it all the more important to shop around for quotes, particularly at renewal.

Does my insurance cover special occasions?

Classic car insurance usually covers events such as vintage rallies and shows, though if the event is abroad, you will probably have to pay an additional premium.

If you hire out your classic car for weddings, you will almost certainly have to extend the cover because most private car policies exclude use of the vehicle for “hire and reward”.

Can I save money on my classic car insurance?

If you drive fewer miles each year than the policy maximum, you can often agree a lower limit in exchange for a lower premium.

Members of recognised classic car clubs should be able to earn a discount on their premium of about 15%.

Some firms will insure only third party, or third party fire and theft instead of comprehensive cover. But you have to weigh up the costs savings against the potential pitfalls of limited cover and remember that the cheapest classic car insurance policy will not always be the best one. However, there might be occasions when you need to take your classic car off the road for a period of time for repair or restoration.  A 'laid-up' policy will cover the vehicle against fire, theft or damage resulting from theft or attempted theft as long as it is kept in a garage - and is cheaper than comprehensive cover. In order for this to become reality you would have to declare the car to be off the road to comply with insurance rules. You will find all these different types of classic car insurance online on the MoneySupermarket.com price comparison service.

Security of your vehicle is important - and classic cars can be particularly attractive to thieves and vandals. You will therefore be offered cheaper classic car insurance quotes if you fit your car with approved security devices and keep it in a locked garage.

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Convicted Driver Insurance

If you have recently been on the receiving end of a driving conviction, chances are that it will have a negative impact on the car insurance prices you are offered. However, this doesn't mean that you should be forced off the road.

Get cheap car insurance for convicted drivers

The effects of the recession are taking their toll on the insurance market, with car insurance prices rising by up to 40% over the course of the past twelve months.

Anyone in search of car insurance for convicted drivers has the additional handicap of their penalty points on top of this, which increases the perceived likelihood of an accident occurring in the eyes of insurers. This results in higher premiums for such drivers, with the size of the handicap dependant on the severity of the offence.
However, there are still ways to lower you car insurance premiums and ensure that you are not forced off the road. One of the most effective is to opt for a car which is cheaper to insure. 

Choice of car

Each car is assigned to an insurance group numbered between one and fifty. This is decided upon based on a number of factors such as the overall value of the vehicle, the general cost of repairs, the security features it is equipped with and the car performance levels. To get a better understanding of this, feel free to take advantage of our car insurance groups page.

Put simply, cars in insurance group one are the cheapest to insure with vehicles in insurance group fifty the most expensive. If you are on the look out for cheap car insurance for convicted drivers, then you should opt for the car in the lowest insurance group possible in order to lower the price of your premiums.

Other money saving tips

However, if you are not planning on changing your existing vehicle, there are still a number of things you can do to lower the cost of insurance for convicted drivers.

One tip is to reduce your annual mileage. The more miles you travel over the course of your policy, the more likely it is that you will have an accident. By keeping the mileage limit you set on your policy as low as possible, you will ensure that you are not paying for miles that are not going to be used.

Another good way of reducing premiums is to consider safety and security. Parking in a locked garage at night reduces the statistical likelihood of your car being stolen or vandalised. Insurers recognise this in the shape of cheaper premiums, so make sure you take advantage of this if you can. Fitting approved alarms and/or immobilisers is another method which helps to reduce the statistical likelihood of a claim being made. However, remember not to lie when providing car insurance companies with this information as it could render your policy void.
Of course, one of the easiest ways of getting cheaper car insurance for convicted drivers is by shopping around and comparing prices with as many different insurance companies as possible. Moneysupermarket.com aims to compare deals available through some of the UK's leading car insurance companies to help find you the deal which best suits your needs or afflictions (i.e. driving convictions).

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First car insurance

Passing your driving test is an exciting time when the world seems to open up to you. Travelling suddenly seems so much easier.

However, you first have to pass the hurdle of buying your first car. This isn't just as easy as picking a car that looks nice, and your first car insurance policy will be a major consideration in this.

Rising car insurance prices

Car insurance prices are rising by 44p every single day, with the average driver now paying £791 each year.
These statistics slightly disguise the fact that newly qualified and young driver car insurance quotes are disproportionally high compared to those offered to older and more experienced motorists.
However, there are a number of other things that you can do to help bring down your first car insurance offers.

Choice of car

Every different make and model of car is placed in a car insurance group numbered between one and fifty. These are decided upon by the Association of British Insurers (ABI), whose decision is based on the overall car performance, its security features and the statistical likelihood of a motorist who owns that make of vehicle making an insurance claim.

Vehicles which are assigned to car insurance group one are generally the cheapest to insure. Newly qualified drivers who have recently passed their test should therefore opt for a vehicle which is in the lowest insurance group possible if you are concerned about the first car insurance quotes you will be offered.

Pass Plus insurance impact

Pass plus is an advanced driving course which is available to all newly qualified motorists. This usually consists of six modules covering elements of driving which were not covered on your initial lessons before you pass your test. These modules include motorway techniques, night time driving and how to cope with extreme weather conditions.
These are available through most driving instructors and will result in reduced car insurance premiums from the majority of insurers.

Choosing your first car insurance policy

Your first car insurance hunt can be incredibly complicated, with multiple different options to choose from and terms to take in. Things have become even more complicated on the back of the recent insurance price increases, with newly qualified drivers now being offered a number of different options which could help bring down their premiums.

One of these options is pay as you go car insurance, which is a new concept offered by an increasing number of insurers where a black box is placed in your vehicle in order to record the number of miles completed. This ensures that you are only paying for the miles you are going to be using and could well be a tactic to help combat those high initial buying costs.

An alternative to this might be short term car insurance. This could be a better alternative for newly qualified drivers who are going to be using a vehicle intermittently. There are a number of different types of short term car insurance to choose from, ranging paying for car insurance cover for one week or even just one day.

Compare your first car insurance offers

Of course the best way to find the right deal for you is to compare everything that's available on the marketplace. Unfortunately this can be very time consuming, but moneysupermarket.com can help you in this task by comparing deals available through hundreds of different car insurance companies in a matter of moments.

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Green Car Insurance

Given the predictions by industry experts that fuel prices will continue to increase, a growing number of motorists are looking for more fuel efficient vehicles.

However, owners of fuel efficient vehicles won't just make savings on their annual fuel, as they could also benefit from cheaper car insurance deals.

Get cheaper car insurance deals

Research by moneysupermarket.com suggests that some car insurance companies will offer discounts to owners of certain environmental friendly vehicles of somewhere up to 5%. This is a significant amount when you consider that the average motorist is now paying £791 per year for their car insurance alone. It all adds up, especially when fuel and tax savings for green car owners are also taken into account.

Green car options

It is a misconception that all green cars are impractical and expensive to buy. Car manufacturers are increasing their range of fuel efficient options in response to consumer demand for such vehicles and increasingly stringent EU regulations. This means that there are now both petrol and diesel green car options available, with the diesel option being the most common.

Hybrid vehicles are another option you might consider, where you have an electric engine running alongside the conventional petrol/diesel motor. This has obvious fuel saving qualities in that the electric motor will run at certain points during a journey, meaning that the conventional engine will not be used at all times.
Of course, there are more stereotypical green cars available which are powered by electric motors. These are set to become more prevalent in the coming years, with a significant number of car manufacturers announcing their intention to produce more electric vehicles in the next five years.
Regardless of the type of environmental car you have opted for, moneysupermarket.com aims to find the right green car insurance policy for you.

Non-financial green car insurance benefits

Motorists opting for green car insurance don't just stand to benefit from cost savings, as there are a number of green car insurance company's who simply offer to offset the pollution caused by your motorised travel with schemes such as tree planting or other environmental charity causes.
Many of these insurers will not offer the same cost savings as other companies, but this could be something that you are interested in. You don't even have to own an environmental car in order to take advantage of such deals, allowing you to be environmentally conscious without altering your driving routine or the car you drive. 

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Imported car insurance

More motorists these days are importing cars from overseas. They are often not only cheaper but also built to a higher specification than UK models. The growing popularity of car imports, particularly from Japan, has made the process easier. But imported car insurance deals can be tricky to find, especially at a competitive price - and that makes it all the more important to shop around for the best deal.

How much does imported car insurance cost?

The average motor insurance policy now costs £892 a year, but owners of imported cars should expect to pay above the average for their policy. Insurers often charge more to cover imported cars because it is usually harder and more expensive to source parts and carry out repairs in the event of a claim. An import might not be built to European standards, for example, or it might be a left hand drive car. The high spec on some imported cars can also increase the statistical likelihood of an accident.

What is a grey import?

The cost of import car insurance is largely determined by your car's import category. So-called 'grey' imports are built for non-EU countries and so do not meet European standards. Japanese cars fall into this category. Some insurers will refuse offer grey or Japanese import car insurance; others will bump up the premiums. Japanese imports must undergo testing under the Single Vehicle Approval scheme before they are legal to drive on UK roads and your insurer will usually ask a number of detailed questions about your grey import before it will quote a premium.

What if I have imported my car from Europe?

So-called parallel imports are more straightforward because they are bought from another EU country and so must adhere to the same minimum standards as the UK. Insurers are generally more willing to insure parallel imports and the cost of cover is not usually as high.

How can I cut the cost of import car insurance?

There are five money saving tips to take heed of before starting your imported car insurance search:

• If your imported car is modified, it will be both more difficult and more costly to insure. Some insurers won't make any distinction between a left-hand and a right-hand drive vehicle in their quotes, as long there are no additional modifications to the vehicle. However, some modifications will be viewed positively by insurers, with most insurers offering cheaper premiums if you have fitted an approved security device such as an alarm or immobiliser.
• Steer clear of high performance or sporty cars, as they are almost always more costly to insure. 
• You can save up to 5% on your premium if you keep your car locked in a garage overnight.
• If you are willing to pay a higher excess, you will usually be rewarded with a lower premium. 
• Motorists who build up a no claims discount will pay less for their car insurance, so always take care on the roads.
  
  These tips can be applied to specialist insurers; a number of whom will offer tailor made imported car insurance polices. However, you should always search the market for the best deal, as with standard car insurance. The MoneySupermarket.com website can help you find insurance, compare quotes - and save money. The average car insurance customer saves £339 a year by using our comparison service.

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Instant car insurance

Car insurance prices are escalating by an average of 44 pence each day according to moneysupermarket.com research. It has therefore never been more important to shop around to find cheap car insurance deal when your renewal is due.

The only way to be sure that you are getting the best deal available is by comparing prices available through the every different car insurance company on the market. Unfortunately there are hundreds of them, which mean that it would ordinarily be a very time consuming process.

The changing car insurance market

A large contributor to the car insurance costs problem is uninsured drivers, with research by moneysupermarket.com suggesting that one in six motorists are currently driving without adequate insurance cover.
This problem is costing the UK insurance industry £500 million each year according to the Motor Insurers Bureau, with this calculation based on the insurance companies lost income from uninsured drivers and the fact that they are being forced to cover the costs of these motorists whenever an accident involving them occurs. These additional costs are then being passed onto other motorists in the form of higher basic car insurance premiums, creating problems for the vast majority of motorists who are law abiding.

The government has moved to address this problem by introducing the new Continuous Insurance Enforcement regulations. This will see drivers without adequate levels of cover issued with £100 on the spot fines and may also result in their vehicles being clamped, seized or destroyed. The policy holder will then be issued with a date by which time they must arrange for adequate cover. Failure to comply with this notice could result in an additional £1,000 fine and a possible court appearance.

Equality in car insurance

Another area of contention in car insurance has been the disparity in prices offered to male and female motorists.
However, a landmark ruling by the European Court of Justice means that from the 21st December 2012 it will be illegal to discriminate on the grounds of gender. It is expected that this will result in female car insurance prices rising by as much as 50% on the run up to this date.

Female car insurance customers will therefore no doubt be looking for new techniques to help lower their annual premiums.

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Kit Car Insurance

Building a kit car can be an expensive hobby, so the last thing a kit car enthusiast needs is costly motor insurance. There are specialist kit car insurance companies, however, who offer cover specifically tailored towards the kit car community.

What should your kit car insurance include?

When buying insurance for a kit car, there are a few more things to consider than when you are looking for a more conventional car insurance policy.

Some policies offer cover for parts whilst in transit and some protect against damage or theft during the construction process. An 'all parts covered' policy will ensure you are covered if parts get damaged or go missing.

If you plan to take your pride and joy out on a test track, you'll need to make sure your kit car insurance covers you for this activity.

Kit car insurance and optional policy extras

As the name suggests, optional extras can increase the price you pay for your kit car insurance, but may give you the extra peace of mind of knowing that your kit car is well-protected after all the time you have dedicated to it.
Agreed value cover: By negotiating agreed value cover on your kit car, you have a guarantee that the amount you paid for the vehicle does not depreciate in the event of a claim.
Breakdown and legal cover: Finding breakdown cover for a kit car may be more difficult than it would for a conventional car, so you might want to consider adding it your kit car insurance policy. Opting for legal cover will cover your expenses if court action follows an accident.
If you plan on driving your kit car on the Continent, green card cover provides the most basic level of cover when travelling abroad.

If you plan on using your kit car for a special occasion, like a wedding, then you might want to ask your insurer about 'formal occasion cover'.

A great thing about building a kit car is that it is built to your own specification. In terms of kit car insurance you can use this to your advantage by limiting the size of the engine you install. The larger an engine you put in your kit car, the great risk you will represent in the eyes of insurers - resulting in higher premiums.

You might also be able to negotiate cheap kit car insurance quotes by agreeing to a mileage limit with your insurer, fitting industry-approved security devices and keeping the kit car in secure location overnight.

Make sure your kit car is street-legal

If you are buying a kit car already assembled you should make sure it is officially roadworthy. For a kit car to be used legally on the roads, it needs to pass a Single Vehicle Approval (SVA) test, which costs around £190.
Once your kit car has passed its SVA it will not normally need an MOT for another three years.

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Learner driver insurance

Learning to drive can be a really exciting time but it can also be expensive: If you're using public transport to get around you will have to pay for both that and your lessons at the same time, the tests keep getting more and more expensive year after year, and if you want to learn in a car other than your driving instructor's, you will need some form of learner driver insurance.

What is the best car insurance for learner drivers?

This depends entirely on your situation.

If you are only driving your instructor's car and no others, you do not need to be concerned about insurance - part of your instructor's policy covers students, and part of your lesson fee goes towards paying for the insurance.

However, if you are driving another car that belongs to you or somebody else, you will need to be insured to drive that vehicle.

If the vehicle is yours, you will be better off taking out a learner driver car insurance policy in your own name - it may be expensive, but the majority of policies get more expensive once you pass (the logic being that once you pass you will no longer have supervision whilst driving), and the sooner you start paying for your own insurance, the sooner you can start building up your no-claims discount.

There are steps you can take to keep your premium as low as possible though: For example, if you have a parent or other experienced driver living in the same property as you, adding them as a named driver can decrease your premiums quite substantially. Do not be tempted to have them take out a car insurance policy in their name whilst you are the main driver however - this is called fronting, and can invalidate any claims you might have to make.

The third option is for an experienced friend or relative to add you to their policy - but remember, that driver needs to be have been qualified for at least three years and be over 21 in order to take you out in their car.

Cheap learner driver car insurance tips

As a learner driver, your insurance will be costly - but there are a number of things you can do no matter your experience level to keep your car insurance premium low:

Drive a less powerful car: vehicles with smaller engines are cheaper to insure, particularly ones with a lower insurance group rating.
Drive carefully: this is particularly important as a learner driver; whilst gaining points will not stop you from taking your test, they will increase your car insurance premiums and mean you have to be extra careful once you pass.

Limit your mileage: whilst you are learning to drive, you won't be doing many miles a year. Consider declaring a low number of miles travelled whilst you are learning (but don't cut it too low if you want to practice intensively before your test) - make sure you inform your insurer of an increase once you start using the car on a day-to-day basis

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Modified Car Insurance

Modifying a vehicle can increase its value and performance, but in the eyes of insurance providers, it also increases the risk of making a claim. This can make finding car insurance for modified cars difficult. 

Can you lower the cost of modified car insurance?

To a certain extent, you can keep the cost of modified car insurance down - but you may have to compromise on what modifications you'd like to make.
Initially, you should think carefully about the effect the modifications will have on your car insurance premiums.
The obvious solution is not to go too far with the modifications. Keeping the changes to a minimum will limit your modified car insurance quotes.

If you decide to go ahead and modify your car, you are legally obligated to inform your car insurance provider. Failing to do so can invalidate the policy, and in the event of a claim the insurer may refuse to pay out.

There are some insurers, however, that specialise in modified car insurance.

Money-saving modified car insurance tips

For modified car insurance, you might change tack for how you would usually look for car insurance quotes.
Firstly, you should shop around using a comparison website to see what is on offer. Then, you might consider looking specifically at the specialist modified car insurance providers.
As well as potentially offering cheap modified car insurance, these providers often offer extras like track day cover and bonuses if you are a member of an owners' club.
Specialist modified car insurers may also offer an 'agreed valuation' on your car, giving you the peace of mind in knowing exactly what your vehicle is insured for.

Above and beyond these modified car-specific ways of lowering the cost of your premiums, there are steps you can take to lower the costs as you would with an un-modified vehicle.

Fitting a security device approved by your insurer, like an immobiliser, an alarm or a steering wheel lock can help to off-set the increased cost of insuring a modified car.

If you have expensive alloy wheels on your car, you might invest in locking wheel nuts which would reduce the risk of them being stolen and being forced to make a claim.
Adding another, more experienced driver to the policy can sometimes help to lower the cost of the premium, but you must not name them as the main driver if you yourself are the primary driver of the car, as this is illegal and could invalidate the policy.
Parking in a secure location overnight may be reflected in a cheaper modified car insurance quote, and driving safely will keep your license clean of penalty points and build up your no-claims discount.

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Named Driver Car Insurance

The cost of car insurance is going up by 44p every single day, according to research by MoneySupermarket.com. Young drivers pay particularly high premiums - the average now stands at £2,431 - because they are more risky to insure. Statistics show that teenage drivers are ten times more likely to be killed or seriously injured in crashes than drivers aged 35 or over.

Some estimates suggest that the rising cost of motoring has forced 1.3 million drivers off the road, so it's no wonder that more people are looking at different ways to cut the cost of cover, including named driver insurance.

You can usually add up to four named drivers to your car insurance policy, which can be useful if you share a car with flat mates or family members. Usually, the more drivers you add the more costly the cover. But in some cases, adding a named driver can lower your premium.

Let's say you are a young driver who doesn't have much experience of the road. Your car insurance will undoubtedly be expensive - and could even be unaffordable.

But if you add an older, more experienced driver to your policy, the cost could come down. It could fall even lower if the named driver has a clean driving record and a history of no claims. So, if you put your mum on your insurance policy as a named driver, you could find that named driver car insurance policies are the cheapest option.

Car insurance for named drivers and fronting

You don't have to own a car to take advantage of named driver insurance. If, for example, you occasionally drive your parents' car, you could add your name to their policy. Your parents' premium will almost certainly go up with the addition of your name, but it should not rise as much as it would cost to take out your own insurance.

There's just one snag. The insurance companies will not provide no claims discount for named drivers, so taking advantage of this could make your car insurance policies more expensive in the future. A few firms will offer named driver no claims discount if a motorist does not make a claim - as long as they stick with the same insurer when they take out their own policy.  The discount might also be smaller than the discount for the main driver.   

You can include virtually anyone as an additional named driver. It doesn't have to be a family member or spouse. Some insurers may, however, impose age restrictions and you will not be allowed to add anyone who has been banned from driving.

Comprehensive insurance will often include anyone who drives your car with your permission, even if they are not a named driver, but this will normally be restricted to third party cover.

A word of warning: it is illegal to add your name to someone else's policy if you are the main driver or registered owner of the vehicle, a tactic known as fronting. Your mum should not, for example, take out insurance for your car and add you to her policy as a named driver.

Some reports suggest that 45% of young drivers are without valid insurance because of fronting. But the penalties can be severe. Fronting not only invalidates your insurance but you could end up in court and unable to buy insurance in the future. 

Find cheap named driver insurance

At MoneySupermarket.com you can compare quotes for named driver insurance from a range of companies to find cover at a cheap price. Motorists who use the site typically save more than £200 on their annual premium.

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Specialist Car Insurance

Classic car insurance

There is no fixed definition of a classic car though, for the purposes of tax, HMRC consider a classic vehicle to be one that is over 20 years old and worth £15,000 or more.

Fortunately, the criterion set by car insurance companies is often a lot less stringent and many insurers will define a classic car as one that is simply over 20 years old.

And if you drive a classic car then it may be worth taking out specialist car insurance as some insurers will offer lower priced premiums for limited mileage policies and members of classic car owners' clubs.

Imported car insurance

Imported cars such as Japanese or American cars are frequently viewed as a higher risk to insurance companies as they often have powerful engines and their non-EU specification means that they can be costly to repair.

Because of this, many insurers will not be prepared to insure imported vehicles and so it may be necessary to take out specialist car insurance. But the main difference between imported cars and EU spec cars is that the steering wheel is on the left as opposed to the right and so it may be worth comparing prices from standard insurance companies that offer 'left hand drive insurance'.

But it may well work out cheaper to take out specialist imported car insurance as companies that provide this service will have knowledge of the type of vehicle you are insuring, a suitable claims history and may also be able to offer discounts.

Kit car insurance

Building a kit car can be both costly and time consuming so the last thing that a kit car enthusiast wants to spend their money on is expensive car insurance.

So it is worthwhile comparing the prices offered by specialist car insurance companies in order to get the most competitive rate.

In addition, some insurers offer cover for parts whilst in transit and some protect against damage or theft during the construction process. An 'all parts covered' policy will ensure you are covered if parts get damaged or go missing.

Modified car insurance

Modified cars generally offer better performance and demand a higher value than non-modified cars. But, because of this, many insurers will see modified cars as a higher risk and will increase premium prices accordingly.

Car insurance companies will see alloy wheels as a way of making your car more attractive to thieves and will consider a more powerful engine as an increased crash risk due to a quicker rate of acceleration and greater top speed.

There are a number of ways to reduce the cost your car insurance, such as fitting a tracking device and keeping the car in a locked garage overnight, but a good place to start is by using moneysupermarket.com to compare the cost of modified car insurance.

You may also find that getting a policy from a modified car insurance specialist could save you money.

Performance car insurance

As with modified cars, high performance cars are seen as a greater crash risk by insurers due to their more powerful engines and so are generally placed in the higher car insurance groups.

Car insurance companies will also argue that modifications such as lowered suspension can have an adverse affect on handling and so increases the risk of crashing. In addition, high performance cars are statistically more likely to be involved in accidents and generally cost more to repair due to their higher priced cars.

But, because of their specialist knowledge of performance vehicles, it is often the case that, when comparing car insurance prices, policies offered by performance car insurance specialists are often cheaper than those offered by standard insurers.

Sports car insurance

Car insurance companies base their policy prices on the risks posed by you and your vehicle and so sports cars are at the higher end of the insurance scale.

A combination of expensive component parts that are costly to replace in the event of an accident and a high specification that is attractive to thieves means that sports car insurance premium prices are often very high.

But there are a number of money saving tips that can help to keep down the cost of your car insurance. For example, agreeing to limit the number of miles you drive can make your premium cheaper as can not having any drivers aged below 25 on your policy.

It may also be worthwhile taking out your car insurance with a specialist sports car insurance company as these tend to be more knowledgeable about the type of vehicle you drive and can sometimes offer a better deal. 

Car insurance for women drivers

It is now generally acknowledged that women benefit from lower priced car insurance premiums as statistics show that female drivers tend to make fewer and less expensive claims than male drivers.

That is why an industry has been built around women's car insurance with several companies dedicated to providing cover solely for female drivers.

Combining female car insurance with some other money saving tips, such as fitting an approved alarm and immobiliser and minimising optional extras, means that female drivers can make great savings on the cost of their car insurance.

And, although they can't take out specialist car insurance for women drivers, men can also benefit from the competitive rates offered to women. For instance, if you share a car with a female, being registered as a named driver on a female car insurance policy may be more cost effective than being the main policy holder.

Car insurance for young drivers

When it comes to increased car insurance costs then young drivers tend to feel the pinch more than most. This is because young drivers account for a disproportionate amount of accidents on UK roads and so are generally viewed by insurers as the highest risk demographic.

So, with money saving in mind, it may be a good idea for young drivers to take a Pass Plus course as many insurers will look upon this favourably when calculating premium prices. New drivers should also try to stick to cars that fall into one of the lower insurance groups, such as those with smaller engine sizes and with no modifications.

And, although not as commonplace as other specialist car insurance companies, there are a number of insurers that offer policies specifically tailored to the needs of young drivers that should be considered when comparing car insurance prices.

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