Passing your driver’s license is complicated, but as a young driver, it’s only a step before you can go on vacation in your brand new car. Once you have it, you have to look at car insurance. A short guide to find your way among the different conditions and save money.
Know the Different Formulas
It’s a fact that a young driver – someone with less than three years of driving license – is four times more likely to be killed on the road than a seasoned driver Road Safety Association. With such a high risk of accidents, some companies refuse to insure them.
Others compensate for this risk by a “premium” that can go up to double the price of monthly payments compared to a seasoned driver. This premium is governed by the insurance code and limited to 100% mark-up in the first year, 50% the following year and 25% the third year.
Companies that reduce this surcharge sometimes compensate by increasing the deductibles, the minimum amount you must pay in case of an accident, regardless of the number of repairs. Thus, you can pay small monthly payments but have to pay a large sum of money in case of a broken window or scratched bodywork.
One-third formulas are cheaper, but they protect you less: franchises are higher and many situations are not supported. “All risks” insurance protects you better, with smaller franchises, offering assistance or vehicle loan options for example, but are more expensive year-round. The choice depends mainly on your budget and the value of your car.
Use an Insurance Comparator
Start by visiting the websites of comparators. “This is an absolutely necessary first step,” says Pascal Gonzalvez, general manager of L’olivier – auto insurance. There are several online comparators, such as lelynx.fr, lesfurets.com or the-jeune-conducteur.com.
Since the criteria used are not the same according to insurers and comparators, the results can vary widely and are only indicative. We did the test with a standard profile: a young driver of 18 who would come to obtain his license and would like to provide a third Renault Clio Campus petrol 4 CV of 2005. The site lelynx.com offers a first prize at 987 euros per year for L’olivier – auto insurance, lesfurets.com to 1 217 euros for Direct insurance, and le-jeune-conducteur.com to 1 912 euros for Euro insurance.
Attention, to get a price, you must already know his model of vehicle. And not all companies are taken into account. The best is, therefore, to get the first idea through the comparators, then ask for quotes to companies well-positioned in the agency or by phone.
Play the Competition, Negotiate, Anticipate
It is tempting to turn to the insurance of one’s parents to save time and hope for discounts, but that is not necessarily a good calculation.
Aim for a Tailor-made Insurance
In general, the special “young driver” packages are cheaper, but they can hide very high deductibles. “The insurance per kilometer can be worth it if you drive little, they are generally 10% to 30% cheaper,” says Manon Tenes.
More surprising: You Drive offers to lower your insurance premiums if you drive well. This insurance, launched in April and still in the testing phase, provides drivers who have had their license for less than seven years to ship a box in their car. It measures driving in real-time according to four criteria: forced acceleration, sudden braking, high speed turns and pace. Thanks to a system of geolocation, the software is even able to “differentiate a dangerous acceleration in the city center from a necessary acceleration on a motorway insertion road”, specifies the website. All of these criteria determine a score that will lower or increase your rate from one month to the next, from + 10% to -40%. If we take the example of our young license holder who owns a Clio Campus, the starting price of the You Drive insurance will be 1,673 euros per year. It will only be interesting if you drive well, and if you have nothing against having a “snitch” that traces you permanently.
How to Choose Your Car
To pay less, you can act upstream, choosing a gasoline car little powerful, unmodified and not too recent. “Power comes into play because big cars potentially cause more serious accidents,” explains Manon Tenes. Similarly, diesel cars are more expensive to insure because often more powerful than petrol cars. Finally, it is better to avoid tuning: in case of an accident, if the car is changed, the insurer may refuse to cover you. “
Pass the Accompanied Driving
For those who have gone through accompanied driving, the maximum surcharge is only 50% the first year, 25% the second and disappears the third year. “In practice, these drivers typically pay between 25 and 30% less than others. “Says Pascal Gonzalvez, from L’olivier. The insurers consider that the risk of an accident is lower, although the Association of Road Safety recalls that “to date, there is no study that proves that the driver is accompanied driving has less of accidents than others “.
Some insurers also offer driving lessons, paid or free, which can lower your premium. This requires information directly from his insurer.