Car insurance prices have soared in recent years with young drivers in particular facing staggeringly high premiums.
This is because they are deemed to be high risk drivers, but what if there was a quick and easy way to prove to an insurer you were a safer driver, which could slice the cost of the premium in half?
By adding a second driver to a car insurance policy the costs can be cut significantly for young drivers and in one example we saw savings of £800 per year.
It’s not just young drivers who can benefit from this trick either, we’ve seen examples of savings for drivers of all ages who have just passed their test.
Car insurance prices rose to £713 last year on average and £1,625.78 for younger drivers
The average cost of a car insurance policy rose to £713 last year but is considerably more for young drivers. They can expect to pay an average of £1,625.78, while in comparison for those aged between 60 and 69 it is £413.34, according to the AA’s latest price index.
Prices have been increasing because of a raft of tax hikes, a change to the way personal injury compensation is paid, and the rising costs insurers have to pay for whiplash claims.
The price of car insurance is based on risk but if you can show an insurer that you are a less risky driver, you may be able to lower the overall premium costs.
While young drivers will automatically be quoted a high price for car insurance because of the presumed risk, and new drivers who are yet to build up a driving history often fall into the same boat, older drivers are viewed in the opposite way and this is reflected in the costs they pay.
Therefore if you were to add a second driver to a young person’s car insurance policy, this can balance out the overall risk and can lower the price.
To find out just how much can be potentially saved, we asked the comparison website GoCompare to run a series of different quotes to see how much difference adding a second driver to a policy would make to the cost.
For each example the following conditions remained the same; each quote used the same model car, a Vauxhall Corsa, 1.4litre, the same address, and when a partner was added to the policy they were the same age.
When a safer second driver is added to a policy it can cut the yearly cost significantly
The first example was a 17-year old driver quoted £3,097.92. When a parent with a clean licence, aged 43, was added to the policy the overall cost fell to £2,298.24 – a saving of £799.68 per year.
When a parent was added with a speeding conviction, the overall price still fell, this time to £2,448.32, a saving of £649.60.
The second example used was a 25-year old and the initial quoted price was £475.12 which fell to £355.04 with the parent with a clean licence and £362.88 with a parent with a speeding fine.
The third was a 45-year old new driver who was quoted £265.89 initially and this fell to £218.18 with a partner of the same age with a clean licence added and was £238.20 for a partner with a speeding conviction.
As you can see by the fact in the last example the price was more with the partner with a speeding fine, there is some variation in the impact. However, in all of the examples given, for drivers aged 18, 25 and 45, adding a second driver to the policy lowered the cost.
If you’re thinking about trying this trick, there are a few important aspects to consider.
By adding a parent to a young driver’s policy the price fell from £3,097.92 to £2,298.24
The second driver needs to be someone who would reasonably drive the car, such as a parent or partner, and the main driver of the car needs to be just that.
If you add someone else to the policy as the main driver, when they are not, this is called fronting and it’s illegal. If you do this and are caught out, it could not only result in your car insurance becoming invalid, it could also result in a criminal conviction.
Matt Oliver, spokesperson for GoCompare Car Insurance, said: ‘It’s widely known that some younger drivers can benefit from adding a more experienced driver on to their policy in order to lower their premiums, with new drivers saving around £800 by adding a parent on to their policy, but what we can see from these figures, is this also applies to other age groups, even if you’re deemed a low risk driver yourself.
‘This is simply due to the second driver, in most circumstances, making the overall risk slightly lower, as you won’t be the only one driving the car.
‘What people must still be aware of though is the issue of fronting, where younger/less experienced drivers claim to be the named driver, when they’re actually the sole or main user of the vehicle.
‘In this instance, using a more experienced driver to bring the cost down is illegal, so it’s worth people bearing this in mind when taking out a policy.’
If you’ve had any examples of adding another driver to your policy to lower the costs, let us know in the comments box below.
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