The escalating cost of car insurance, particularly burdensome for new and young drivers, has prompted Compare the Market to explore solutions that mitigate these expenses. Recent findings from the leading comparison site reveal that incorporating an experienced named driver into a policy could yield substantial savings.
According to Compare the Market’s research, drivers under the age of 25 stand to save an average of £281 annually by including an additional named driver on their insurance policy. Data shows that while the typical premium for a young driver amounts to £1,859 with an added driver, it increases to £2,140 without one—an increase of 15%. It is emphasized, however, that all named drivers must actively use the vehicle for the policy to remain valid.
For drivers aged 25 to 34, the potential savings are even more significant, averaging £295 per year. Compare the Market’s data indicates that premiums drop from £1,046 to £751—representing a 39% reduction—when an experienced driver is added to the policy.
The spike in insurance costs is attributed to broader economic challenges, with rising repair expenses and other factors contributing to higher premiums across the board. Compare the Market notes that the average premium for drivers under 25 without additional named drivers has surged to £2,140 from £1,783 in the past year—a £357 increase.
Adding an experienced driver typically lowers insurance costs due to insurers factoring in the driving records of all listed drivers. However, it is crucial for policyholders to provide accurate information and avoid ‘fronting,’ which involves misrepresenting who the primary driver is to obtain lower premiums. Engaging in fronting can result in invalid policies, criminal charges, and substantial penalties.
Julie Daniels, a motor insurance expert at Compare the Market, underscores the importance of young drivers exploring legitimate avenues to reduce insurance expenses. She advises that while adding a parent or experienced driver can yield significant savings, integrity in disclosing driving habits is paramount to avoid legal consequences.
To further alleviate insurance costs, Daniels suggests that drivers compare different policies ahead of renewal, highlighting potential savings of up to £549 through Compare the Market. This proactive approach ensures that drivers can secure competitive premiums while adhering to legal and ethical standards.
In conclusion, Compare the Market’s findings underscore the financial benefits of adding an experienced driver to insurance policies, offering young motorists a viable strategy to manage escalating insurance costs responsibly and legally.
