Motoring and insurances are always topics that receive frequent media placement and indeed the majority of us are very interested to hear the latest news in terms of any way we might be able to save money. More often than not the news is of a less favourable nature, i.e. what latest charge will be increasing the price of our premiums.
A group most likely to suffer high insurance premiums is those under 25. The average newly qualified driver in this age group can expect to pay anywhere between £1-2000 for their first years premium. Some of you may be lucky enough to find introduction offers cheaper than this but this is very rare.
The latest idea introduced by certain insurers is to install a GPS (satellite tracking) device to your vehicle and charge on a “pay as you go” basis for every mile at a rate they decide, based on your personal circumstances. Of course for newly qualified drivers who face high
motor insurance costs this may be appealing. The question to ask yourself is; “will this benefit me if I am not a light user?” It appears that it will not, this is due to the fact that you could be charged anywhere between 6-15 pence per mile in the daytime. If you took the average mileage to be 1000 miles a month, go for 10 pence a mile, you will find your coverage costing £1200 a year.
The main downside I have left till now to talk about is the penalty for night time driving.
From research carried out by the insurance companies the decision has been to issue a charge averaging £25 for driving between the hours of 11pm and 6am. This is a direct result of evidence thought to prove that under 25’s are involved in a much higher proportion of road accident, especially during these hours.
The system will report back to the insurer with the start and finish time of each journey and charge you on this basis. It is important to remember that if you make several journeys during the night you will end up negating any saving you initially made. It is without doubt a good form of
car insurance for those struggling to afford it but only (and it is a large “but”) if you don’t use the car too much and do not travel during the hours specified as high risk.
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