Car insurance for students
car insurance originally came out in the 1960s, when Endsleigh Insurance Company
introduced it. Since then, numerous insurers have come to realise that students
need to have an insurance policy designed specifically for them. Over the past
fifty years, thousands of students have taken advantage of this type of car
insurance. As car insurance premiums continue to climb, especially for young
drivers, many more students will likely want to take advantage of the
specialised car policies.
Tips and advice for students
Although purchasing car insurance can be overwhelming, there are some steps you can take to make it simpler. These are:
? First determine what type of insurance you'll actually need. Most students choose the basic third party policies simply because it's the least expensive. This is fine for older vehicles or inexpensive cars. The only problem is that it doesn't cover your medical expenses or repair any damages done to your own vehicle if you're in an accident. Some choose third party theft and fire, because research has demonstrated that students are often the targets of thieves. If you have a nice new car, you may need fully comprehensive cover instead of the less expensive third party cover.
? If you haven't purchased a car yet, consider one that fits in insurance groups 1-4. You can find help determining a car's insurance group through various web sites, such as the one maintained by the Association of British Insurers and Thatcham. A second-hand car or a newer vehicle with a small engine size will usually help to lower the premiums. Basically, you need to have a car that is very safe, anti-theft secure, inexpensive, and easy as well as inexpensive to repair or replace. The closer your car fits the description, then the lower your insurance premiums will be. Also, if the car's value is at or under ?£5000, you can opt for the less expensive third party types of insurance.
? You may also want to consider being a named driver on your parents' policy while you're accruing your own No Claims bonus. However, you'll have to choose your insurer very carefully then, as some insurers will give the credit to your parents instead of you. In most cases, it's best to get the insurance cover in your own name. If you do become a named driver be very careful, though, to ensure that your parents are in fact the main drivers of the car and not only drive a higher mileage in it than you do, but can also prove it: otherwise you could be accused of 'fronting' and find any claim disallowed in the event of an accident as well as facing possible prosecution. It just isn't worth it so if you do go down this route make sure you obey the rules, insurance companies have many ways of finding out the truth if you try to pull the wool over their eyes.
? If you're
under 25 years of age, then also compare offers from insurers that specialise in
young drivers insurance. Some of these companies offer competitive prices but do
not specifically refer to the policies as student car insurance policies.
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