|
||
As a new driver, you will have some new responsibilities. If you are reading this article, you could be a teenager that just got their license or someone older who never had a license before. Which ever your case, there are some things you need to know about care insurance and how you can become a safer driver on the road. Almost everyone gets a driver's license at some point in their life, but not everyone always knows the risk involved every time you step foot into a vehicle.
What the Insurance Company Sees
Being that you are a new driver, you will have to get insurance. If you are a teenager that just acquired your license, it is best to stay on your parent's policy until you have a few “safe driver” years under your belt. At this point, the insurance company, no matter which one you choose, will see you as a higher risk. Statistics show that teenager pose a higher risk while driving because of a few common facts. These facts are:
1. Distraction: It is common for a teenager to have many distractions. Distractions to a teenager are heightened because they typically do not distinguish importance of responsibilities. Example, if a song they like is playing on the radio, and they are not in the best position to let go of the wheel or take their eyes off the road, they will still reach for that knob to turn the radio up. It is not they feel the song is more important that a wreck, but they just do not think of that wreck happening by turning up the radio. Another form of distraction can be in the form of other teenage friends in the car. Typically, when teenagers get around each other there is horseplay or conversation that could lead to not paying close attention to the road.
2. Cell Phones: Teenagers are super glued to that cell phone. As if talking on a cell phone while driving was not dangerous enough, teenagers will actually text on their cell phones while driving. Texting requires, for the most part, looking at the keys to type a message and then send. How long are their eyes off the road before they end up rear-ending a car?
3. Calculated Risk does not exist. Teenagers often times feel they are invincible. This leads them to take greater risks while driving. Teenagers are known for speeding, cutting people off, racing other cars, and driving recklessly in general. Not every teen does this, but then again, there are instances to back this up, and that is what the insurance company looks at.
If you are not a teenager, and you are getting your license, they are going to see you as an inexperienced driver. Inexperience equals higher risk. When getting insurance, age does play an important factor, so in that respect, you would have that going for you.
Not matter if you are a teen getting your license or past that age, you will see and pay a higher premium until you can establish a good driving record. This can take as long as 3-5 years.
The AA doesn't seem too impressed with Tesco's offering, saying that the excess is really high and if you look around you could buy the usual fully comprehensive for the same price. Taking the opposite stance is Norwich Union who believes that other insurers will compete with simple, non-gimmicky, cover. Getting ahead of the competition, they have been watching the patterns of 5000 motorists over a two year period and they are starting to offer new policies based on their research.
Both of these insurers will aim to keep at the top of the “Best Buy” tables and the resulting competition between insurers to keep the premiums low and gain the business will be interesting to observe.
What is it that's so different about these new policies?
First of all there's Tesco's new “Value” car insurance. This is a type of “hybrid”, coming higher in the scale of cover than basic third party but stopping short of the more usual fully comprehensive. For example, if your car is off the road, you won't get a courtesy car, it doesn't cover young drivers and at £475, the excess is much higher than usual. Your no-claims discount will not be protected and if repairs are needed these can only be carried out by designated garages. Normal guarantees on repairs are three years, but they have reduced this to only 12 months. If you can accept these restrictions, Tesco say there will be a saving of 12% on its standard cover. Another proviso is that you must buy cover on-line.
On offer from Norwich Union is a young driver's policy. Not available to new customers for the time being, customers are charged according to their driving patterns. It has been found that younger drivers have a higher likelihood of accidents at night and so there is a charge of £1 each time they drive between the hours of 11pm and 6am.
Direct Line, not to be outdone, has similar new products coming on to the market.
It all sounds slightly confusing and you have to consider what you're missing out on in the way of cover. It is possible for the more conventional fully comprehensive policy to be reduced if you're willing to sacrifice some of the cover or pay a higher excess. These deals are available on-line and easily accessible, but why tie yourself to one company? If you search on the internet for a car insurance broker and are specific about your needs, they'll do the research and come up with the right deal for you.
Older drivers have car insurance problems too. The Government may be considering whether regular eyesight and certain other medical checks should be carried out three yearly. The Association of British Insurers have requested this as they feel that with declining eyesight and age, responses could be slower and therefore older drivers could be more at risk of accidents. Age Concern, a charity representing the elderly, argues against this, believing that fitness to drive should be based on skill, not age.
The Association of British Insurers report that in fact older drivers have more accidents per mile than drivers in middle age and also state that there is a higher likelihood of injury or death resulting from a crash, both for them and other road users.
From the age of 60, car insurance premiums will start to rise as underwriters begin to get wary of taking on new clients. The AA tell us that, as an example, a woman of 21, who pays a premium of £326, will find it reduced to £197 at 60, but by the time she reaches 80 the cost will be £460. There are policies designed to serve the needs of older people, Age Concern, Saga and Help the Aged are just three of them, but again, if you contact an on line broker, they'll have all the facts and be able to offer help on this.