The cost of car insurance for drivers under the age of 25 is more expensive than for older people because, according to statistics, people in that group have the worst driving records, higher accident rates and more expensive accidents.
“Insurance companies generally deem young people as high risk, owing to their lack of extensive driving experience, and therefore higher risk of accidents,” says Barend Smit, marketing director of MotorHappy, a supplier of motor management solutions and car insurance options. “However, there are ways that young people can decrease their premiums.”
Choosing a car with a smaller engine and a good safety rating is a good start, while faster cars with higher horsepower are considered more dangerous for younger drivers and attract higher premiums. Though features such as passenger and back seat airbags and anti-lock brakes can help to lower premiums.
“Fully understand the policy before committing. For example, a higher excess might mean lower premiums, which can help in the short term. Driving cautiously and within the speed limit will decrease your chance of an accident; this will in turn have a positive effect on premiums,” Smit explains.
“The better your claims history is, the better your chances are of saving on premiums. Investing in a defensive driving course can also help lower premiums as you gain better driving skills. It’s also best to repair small bumps and scratches that you can afford to repair on your own rather than to claim through insurance. The more you claim, the higher your premium will be, keeping a vehicle in a garage or somewhere safe at night with a tracking device ... helps with lowering premiums.”
Drunk driving
King Price insurance adds that driving under the influence of alcohol also has serious implications. Customer experience partner Wynand van Vuuren warns: “Insurers have the right to refuse to pay accident claims if the driver’s blood alcohol level is over the legal limit.
“If you break the law by driving with alcohol in your blood, your insurer will have no obligation to meet your claim. It’s also likely that your premium will increase significantly, as you’ll be considered a higher risk.
“In the worst-case scenario your licence gets endorsed or suspended, your insurer may cancel your policy and you may find it difficult to get car insurance at all in future,” said Van Vuuren.
Vehicle colour
Another noteworthy insurance tip for younger drivers involves the colour of your car. According to Van Vuuren: “Our claims history has shown that ‘less-visible’ cars have a higher chance of being in an accident. A charcoal or black vehicle will have a higher chance of being written off, and that gets priced into your premium”
Black and darker vehicles are slightly more expensive to insure as they’re harder to see on the road, and therefore have a statistically higher chance of being in an accident.
White and light-coloured cars attract lower premiums, as they have the best visibility. Your premium may be affected by up to 10%, depending on the colour of your car. Metallic paints can also attract an extra premium as they are more expensive to repair in the case of an accident.
Pimping your ride
For many young SA drivers, putting their own stamp on a car is a must. Inform your insurer before fitting free-flow exhausts, new body kits, low-profile tyres and custom rims as they may affect your insurance claims.
According to King Price, some modifications may not affect your insurance premium a lot — like a custom paint job or a set of mag wheels, for example. Other add-ons such as dash cameras and tracking devices might even reduce your monthly premium, but anything that affects the performance of the car must be disclosed.
“A high-end sound system can increase the value of your car and must be included in your monthly premium. By the same token, anything you do that changes the performance of the car, like an aftermarket turbo charger or dropping the suspension, will influence the risk, and must be disclosed,” says Van Vuuren.
Extreme add-ons such as nitrous oxide installations make yourself uninsurable and modifications that affect the safety of other road users, including a radically lowered suspension or oversized wheels, could render your vehicle unroadworthy.
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