Insuring a Hot
Most young drivers, especially males,
dream of owning a fast, sporty car. Hot hatches offer young drivers the cheapest
route to this kind of high performance. However, hot hatches are also more
expensive to run and to insure than a more mundane model in the same range.
In some extreme cases, the insurance cost
can exceed the value of the car. This is due to the higher premiums young
drivers, especially males, are charged. Insurers automatically assume that a
young male driver is a high risk. Statistics have proven that they’re the most
likeliest to have a serious accident due to excess speed, aggressive risk taking
behaviour, distracted driving, or drink driving. The risk is likely to increase
if the young driver has a fast, sporty car.
You’ll likely want to find ways to reduce
your insurance premiums so you can spend more on running your pride and joy.
After all, what good is it to have a car if you can’t afford to keep it on the
road? The following tips may help you out.
Ø Take extra driver training courses, like the Pass Plus Test, and special hot
hatch or high performance car training courses. If you know you’re going to
eventually own a fast, sporty car then get properly qualified for handling the
higher risks involved prior to getting the vehicle. Taking the Pass Plus
course/test may save you up to 30% on your premiums, whether you’re driving a
hot hatch or a more mundane model.
Ø Save up money and pay your premiums in one annual lump sum, if at all
possible. Although the monthly payments may seem more affordable, they actually
cost you more in the long run due to the interest charges and credit fees that
may accrue. If you have to, forego some seemingly lesser daily cost, such as a
snack or drink. Put the money saved aside somewhere where you can’t have easy
access to it. Consider putting it aside in a bank savings account so it can be
making a little extra money for you until the premium becomes due.
Ø Report accurate mileage, but try to lower the mileage if possible. Figure out
your actual mileage and then add 10%-15% on top to cover any unexpected longer
trips. Report this mileage amount as accurately as you can to your insurer. Once
you’ve figured out how many miles you drive, try to find ways to reduce it. Such
as combining errands, planning out a better route, utilising public
transportation, and car pooling with people who’re going to the same local areas
as you’re going.
Ø Limit the number and age of the drivers named on the policy, especially any
drivers under the age of 25.
Ø Consider waiting until after your birthday to buy a car and insurance if
you’re close to having a birthday. Being a bit older helps to lower the risk
rate for insurers.
Ø Consider starting off more slowly. Instead of buying a hot hatch right after
getting your driving licence, buy a slower, more mundane model. Take the time to
build up driving experience and a No Claims Bonus while putting aside the
savings on your insurance premiums. Then take the savings and buy a better hot
hatch in a couple of years.
Ø Establish a good credit history as soon as possible. Take out and promptly
repay small loans, and ask the lenders to report the prompt payments to the
credit agencies. Maintain some form of steady employment.
Ø Demonstrate a high maturity level. Become active in your community and school.
Seek help for any addictions, especially to smoking, drinking, and taking drugs.
Take leadership training courses to help demonstrate that you are not likely to
give into peer pressure.
Ø Figure out what your exact insurance needs are, and don’t let the insurer
include any services that you’re most likely never going to use. Many insurers
automatically add in extra services, such as courtesy cars, breakdown cover,
European cover, and legal costs.
Ø Do some in-depth comparison shopping, both online and off-line. Insurance
premiums and policies can vary enormously among insurers. It pays to look around
and be very selective of your insurance company. Be sure to look for any hidden
fees or charges that may be included, especially in the premiums that are
extremely lower than those for similar cover. Never settle for just the first
low quote you find. Always get quotes from at least five online comparison
sites, and visit several insurers’ web sites first. Be sure you ask family,
friends, and co-workers’ for their advice too, as they may have already found a
Ø Make sure that your insurer is reputable and financially stable, and has great
customer service. Some companies charge for policy adjustments, such as name or
address changes. Read all the fine print before signing an insurance contract.
Ø Enhance the security of your vehicle by overnight parking in a garage or other
secured off-road location, and consider installing approved immobilisers. You
should strive for your hot hatch to have a category 1 or 2 security rating.
Ø Many people may recommend increasing your voluntary excess in order to lower
your premiums. This should be done only after some very careful consideration.
While increased voluntary excess may lower the upfront premium payment by a few
pounds, it means you have to pay out more from your own pocket anytime you have
to file a claim. Statistics show that new drivers and young drivers are very
likely to have accidents within the first five years of getting their licences.
If you have an accident, it could cost you a small fortune simply because you
set the excess too high.
Due to being a young driver, it’s going to cost you a fair old sum for car
insurance. The above steps will help to reduce the cost of your annual premiums
over time, just as growing older will. However, it’s up to you to keep your hot
hatch on the road legally. This means keeping your car adequately insured
throughout the year. The best way to find, compare, and purchase car insurance
is to go online. You can get the assistance you need, as well as get a discount
for buying online.
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