Young and expensive car insurance? 8 tips to save
June 16, 2019
Just like your parents, you have car insurance, but you pay twice as much premium per year. Weird, right? Not according to car insurers. They estimate young people as an – inexperienced – risk group, which is why you have to pay more premiums. But don’t worry, we have listed 8 tips for you. This way you can save on your car insurance and keep your money on nicer things!
1. Drive a cheap car with little power
If you want to save, it is of course wise not to buy an expensive car – for a start. New cars need more expensive insurance. The premiums are also higher for cars with a lot of power. They can drive faster, which in turn leads to more risk. A cheap car also means: cheap insurance.
2. WA only
If you have an older car, you will soon be overinsured. If you want to keep the premium low, only insure your car for liability insurance. This is required by law and with this you are insured for damage that you cause to others. Damage to your own car is not insured, but if you drive properly or if your car is not worth that much, this can be cheaper.
3. Compare your insurance
What kind of insurance do you currently have? You can probably save a lot if you switch. The premiums differ considerably per insurer. Compare car insurance for young people here.
4. Increase your deductible
With a limited insurance or full insurance (all-risk), the insurer often determines a deductible. This deductible does not apply for a year, such as with your health insurance policy, but for any damage you claim. If you raise the deductible, your premium will go down.
5. Pay your damages yourself
Damage-free years: you probably have few to none, but it is very handy to build them up. With 10 claim-free years you pay almost 50% less premium than people with 0 claim-free years. That is why it is handy – if the amount is not too large – to pay for the damage yourself. This way you do not have to file a claim with your insurer and you can continue to save years without damage.
6. Share a car
Carsharing is hip! If you share a car with friends or family you are cheaper. Or you can borrow one from people in your neighborhood, for example with MyWheels or SnappCar. Via these organizations you are automatically insured per trip, the costs of which are included in your journey price. Even if you are insured, make sure that you indicate that you are using such a platform. Not every insurer agrees with this, should unexpected claims appear on their plates. Carsharing is of course very beneficial if you do not need a car too often and are good for the environment.
7. Use your parents’ car (but drive carefully)
A very cheap option of course, so you don’t have to pay for your own car and insurance. But … You have to drive carefully, not just to keep your parents happy. Suppose you make a lot of damage with your parents’ car. The damage is claimed under the insurance and your parents tell you that you were behind the wheel – logically, otherwise their claim-free years will go. This is disadvantageous for you, because some insurers increase the deductible in such a case. That can only go from 150 euros to 400 euros. No nice surprise!
8. Insure your driving behavior
Are you really a safe driver? The one who always keeps the speed limit and does not play crazy antics? In that case you can take out driving behavior insurance. With this insurance you earn points based on your driving style. Your driving behavior is monitored via an app or a plug. For example, your driving behavior insurer registers whether you are not speeding or suddenly slowing down or accelerating. The safer you drive, the more discount you get on your premium. If you are not an angel on the road, stick to an ‘ordinary’ insurance policy.