Most people saying that you do not need insurance are CLEARLY wrong. If you live in the US, insurance is required on every single vehicle operated on the road. If you buy a car, the state will expect you to have it insured the second you drive it off the lot. The dealer likely won't lift a finger to help you get it insured, because he doesn't care one way or another if it is... he's already got his money, so whatever you do with it after you drive it off the lot is your concern, not his.
But, you will not want to be driving home and get stopped by a policeman who ask for your license and proof of insurance. If you can't provide either (or both), you will likely need to stand in front of a judge and prove that you had both at the time the policeman stopped you, and that will be difficult if you didn't bother to get it insured beforehand.
Why Stay insured: In UK new penalties for motor vehicles without insurance.
Young Drivers Car Insurance, for Learner and New Drivers
We recommend you get as many quotes as you can to make sure you get the right insurance for your circumstances.
Did you know? You must have a valid insurance certificate covering you for third party liability. Before driving any vehicle, make sure that it has cover for your use or that your own insurance gives you adequate cover. You MUST NOT drive a vehicle without insurance.
Car insurance, much like navel fluff, is dull but unavoidable. Don't be a 'blithering idiot', don't leave home without it. Plod will not look favourably upon you if you do.
What will happen if your vehicle doesn't have insurance
From the end of June 2011 Insurance Advisory Letters (IAL) will be issued by the Motor Insurers' Bureau to the registered keepers of uninsured vehicles. This will be following a check of the Motor Insurance Database (MID) - the UK's central record of vehicle insurance. The IAL will advise the registered keeper that their vehicle appears to have no insurance and what actions to take to avoid receiving a fixed penalty from DVLA.
If a vehicle does not have insurance, the registered keeper could:
receive a fixed penalty of £100
have their vehicle wheel-clamped, impounded, or destroyed
face a court prosecution, with a possible maximum fine of £1000
Payment of a penalty does not replace the need for motor insurance.
Types of Car Insurance
Third Party:
This is the most basic insurance type, and is the minimum coverage that allows you to drive legally. Any damage you do to a ‘third party’, ie someone or something that is NOT YOU or YOUR CAR is covered, but for a pittance extra you can get Third Party Fire and Theft (see below). All other policies retain this Third Party component as their basis.
Third Party Fire and Theft:
Third Party Fire and Theft (TPFT) is the basic insurance package favoured by younger learner drivers on their first or second provisional licence, and people who prefer not to pay for fully comprehensive insurance. You are – obviously – insured for ‘Fire’ and ‘Theft’, ie if your car ‘catches’ fire or is stolen. Third Party means that your passengers are covered, and any people, property or cars that you might hit are also covered. Your car is NOT covered. Either are YOU. TPFT is the cheapest way of building up your No Claims Bonus before changing over to the significantly more expensive ‘fully comprehensive’.
Fully Comprehensive Insurance:
This is the ultimate in insurance, adding you and your car to the TPFT package. Thus Fully Comprehensive Insurance (FCI), or "full comp" is also more expensive. Having a full driving licence (and having it for more than two years) helps keep premiums down.
Why is Car Insurance for New Drivers so expensive?
Insurance companies know that new drivers are a bigger insurance risk than any other motoring group and here are the facts to prove it:-
As a new driver, you are more likely to have an accident in the first year after passing your test than at any other time in your motoring career.
Per mile of driving, the risk of an accident involving injury or death is about seven times greater for 17-20 years old than for those aged 40 or over.
Drivers under 21 are involved in 15% of all accident deaths.
New drivers make up just 10% of licence holders, but are involved in 29% of accidents.
Because of these factors insurance premiums are very high for the new driver. However there are ways to cut your insurance premium
Follow these TEN tips to reduce your premium. by
TIP ONE
Young and newly qualified drivers can boost their no-claims bonus by taking an additional test called2passPass Plus. Some companies will credit people who have passed Pass Plus with an extra year's no claims bonus. Companies who offer a discount for Pass Plus include Admiral, AGF, Churchill, Co-operative, Direct Line, Eagle Star, Ecclesiastical, General Accident, Guardian, Highway Motor Policies at Lloyd's, Norwich Union, Pearl, Privilege and Royal SunAlliance. Always check to see if your own insurance offers a Pass Plus discount.
Example Case
Ray age 18, passed his test six months ago and wants to buy his first car. His age and lack of experience are likely to go against him when he's looking for insurance.
To help bring the costs down, Ray could take his Pass Plus exam. Although this would cost him around £100, he could easily save more than that on his first year's insurance alone.
How much could Ray save? It would normally cost Ray £1700 for fully comprehensive cover on his 1992 Ford Escort 1.4 LX. By taking the Pass Plus test, Ray could reduce this to £1500, a saving of £200.
TIP TWO
Drivers who don't have full no-claims bonus can build their bonus up quicker with a policy from some companies called Bonus Accelerator. This policy runs for 10 months rather than the usual 12. At the end of those 10 months, provided no "fault" claims have been made, you get a full year's no claims bonus. So, somebody starting out with zero no-claims can build up to the maximum five years no-claims bonus in just four years.
Be Careful if you choose this scheme You usually have to stay with the same insurance company throughout, in order to build up your maximum no-claims bonus. Companies don't usually allow you to carry a 10 months policy over from one company to another, so please check before you sign up for this type of scheme.
TIP THREE
Buy a smaller-engined car.
If insuring your prospective car is proving too expensive, consider buying a car with a smaller engine. Remember that buying a cheaper car will not make a huge difference to your premiums.
If you or your spouse buy a second car, you may be able to get an introductory bonus on the new car. This means that your insurer may give you the same no-claims bonus on the second car as you have on the first, provided you insure both cars with the same company. It is best to check this with your insurer first because not all companies offer this facility, and the conditions for introductory bonus vary between companies.
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TIP FOUR
Taking a higher Voluntary excess ( The amount of money you have to pay the insurance company if you have to make a claim) than the standard £100 could give you a substantial discount on their premium.
TIP FIVE
Declare your mileage! Telling your insurer how many miles you do, especially if it is below average, they do in a year, and simply let the salesperson plug in an average of, say, 12,000 miles. That's 230 miles a week. If you do less than that, you could be missing out on potential savings by not letting your insurer know.
TIP SIX
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Similarly, if you don't use your car to travel to work, let your insurer know. You may be paying for cover you don't need.
TIP SEVEN
If you have access to a garage or driveway at night, use them. Using off street parking, rather than leaving your car on the street will attract a discount with most insurers.
TIP EIGHT
Insurers prefer prevention rather than claims, so vehicles fitted with an engine immobiliser or alarm may qualify for a discount. The devices which qualify for a discount vary from insurer to insurer, so make sure you check before getting any device fitted.
TIP NINE
If your a man consider becoming a woman:-)
Women can often get cheaper car insurance than their male counterparts.
Why is this?, especially when guys often moan about ‘women’ drivers. The answer is that statistically speaking women are seen as better drivers. Although male drivers often find this hard to believe, the facts are derived from the collection of claims data over several years - decades in fact by car insurance companies.
However, despite the fact that women are statistically seen as better drivers, they generally have the same number of accidents as men. It is the severity of the accident that is very different between the sexes. Typically an insurance company has to pay out a lot more to fix a car when a man has had an accident - the car has to be extensively repaired or even written off. Women’s accidents tend to require less repair because their accidents are often caused by bumping into somebody, reversing into the garage - that type of thing.
TIP TEN
Insurance providers Go and get a on-line quotation from the 2pass Insurance Providers
2pass has a vast panel of car insurance providers specializing in all areas of the car insurance market. See our selection of the major UK insurers we work with who will help you find the most competitive insurance. moneysupermarket.com offer a price comparison service that will allow you to 2passcompare car insurance quotes easily and simply as well.
