Young driver car insurance: these factors (largely) influencing the price of your contribution. It is well known: young drivers always pay more for their car insurance compared to drivers who have already had years of practice (provided there are no penalties). But certain elements can inflate the annual premium of motorists who have recently obtained their precious sesame… or on the contrary, lower it!
Car insurance: what are the general pricing criteria?
To calculate the amount of your auto insurance premium, insurers rely on three main variables:
- The characteristics of the vehicle: date of first registration, taxable horsepower, replacement value, make, model, series, motorization (an electric motor, for example, costs more to repair than a combustion engine)…;
- The use you will make of the vehicle: number of kilometers traveled in the year, routes usually taken, frequency of use, whether or not there is a secondary driver, where you will park (garage, car park, street, etc.);
- Your profile : age, sex, place of residence, seniority of the driving licence…;
- Your driver history (responsible claims or not): this is traced on your information statement, a document that must be submitted to your insurer.
All this information is used to gauge the costs associated with the occurrence of a possible disaster, but also to assess your level of risk. But of course, as a young driver, your history is sparse, even blank. This is why insurers apply what is called an additional insurance premium.
Young driver insurance premium: how is it calculated?
By young driver, we mean driver who has held a driving license for less than 3 years. If this is your case, you are concerned by this famous additional premium.
The rate of increase applied to your insurance premium will be reduced by half if you have taken advanced driving instruction (AAC), commonly called accompanied driving. In all cases, this rate then decreases each year by half, on the sole condition that you have not been involved in an accident for which you are liable. The bonus/malus system is also applicable to young drivers. The reductions or increases resulting from your driving behavior are therefore combined with this additional premium system. After 3 years, under the same conditions, the additional premium disappears.
For example, starting with a referral bonus of €600, you would pay the first year:
- €1,200 if you have followed the classic training (€600 × 2);
- €900 if you have opted for accompanied driving (€600 × 1.5).
The following years, the calculation basis is identical, but the bonus coefficient must also be taken into account (zero the first year). Thus, the second year, your premium would amount to:
- 855 € if you have followed the classic training[(600 × 1,5) × 0,95];
- €712.50 if you have opted for accompanied driving [(600 × 1,25) × 0,95].
Young driver insurance: what solutions to lower the score?
As we have seen, preferring accompanied driving to conventional training is an excellent way to reduce the cost of your car insurance. You may not know it, but the bill will not be higher, on the contrary. Accompanied driving costs on average €500 less. This price difference is explained by the number of hours of driving: in classic training, the student normally needs overtime in addition to the compulsory 20 hours to be ready on the day of the exam.
But if you have already passed your license, many other means of action exist, such as:
- Choose a small engine capacity (the more powerful a vehicle, the higher the premium);
- Take insurance per kilometer (interesting especially if you are a small rider);
- Compare car insurance offers before committing (each insurer applies its own pricing/commercial policy);
- Combine your contracts – auto insurance + home insurance – within the same company (you can negotiate more easily);
- Opt for an annual payment (monthly or quarterly direct debits incur management fees, included in the amount of the premium).