Young Drivers & Car Insurance: Your Top Questions Answered
When we asked young drivers what they wanted to know about car insurance, there were lots of questions about cover for learners.
When you’re learning to drive, there are a lot of decisions to make. What car will you learn in? Who will teach you? How many lessons will you need? Then of course there’s the insurance to think of. So when we invited questions in from young drivers, unsurprisingly there were plenty about cover for learners.
Although you don’t legally need more cover, it is worth looking at all the additional benefits provided by insurers
Q1. Is having car insurance a necessity?
A: Yes – it's a legal requirement under the Road Traffic Act 1961 to have insurance for “your liabilities arising from the use of a mechanically propelled vehicle in a public place”. The minimum level of cover required is Third Party Only, which covers you solely for your liability to others in connection with the vehicle. Third Party Only cover does not provide cover for fire, theft or damage to your vehicle. For example, if you have a collision with another car, the insurer will pay for the damage to the other car – but not to yours. Compare Car Policy Cover Options
Q2. What level of car insurance do I need as a learner driver? Do I need an increased level because of my lack of experience?
A: The level of cover you need as a learner is the same as someone who has passed their test. Cover for liability to others is known as Third Party Only cover. However, the minimum cover offered by some insurers is Third Party Fire & Theft, which gives you cover for loss or damage by Fire or Theft as well as cover for your liability to others.
Although you don’t legally need more cover, it is worth looking at all the additional benefits provided by insurers – at a cost – including things like Breakdown Assistance Cover.
Q3. Do insurance companies cover learners on their own, or do they have to be a named driver?
A: It doesn’t matter how long you have been driving and how many learner permits you have held - you must be accompanied. Also, the person who’s with you must hold a full driving licence for the category of vehicle you are driving for a continuous period of 2 years. This is a serious issue because if you don’t comply with the rules of your licence, then your insurance may be invalid. You don’t have to name the accompanying driver on your insurance, but it would make sense to do so as you may need them to take over driving for you. This way, you can make sure they are fully covered.
Q4. My instructor is telling me to get more experience outside of lessons, but I don't know how I'd afford insurance on the car as the main driver with my provisional licence?
A: Good question – sometimes it seems like a Catch 22 situation, but there is a way around it. If you have your own car, then you will need to get a policy in your own name. However, if you just want to get more experience outside of lessons, you could consider adding yourself as a permanent or temporary driver on your parents’ car until you take your test.
Q5. What kind of insurance should I get? Third Party Fire and Theft Vs. Comprehensive?
A: It really all depends on your needs - and what you can afford. Third Party Fire & Theft covers your liability for other parties and also loss or damage to your car by fire, theft or attempted theft. Comprehensive Cover, on the other hand, also covers damage to your own vehicle, e.g. malicious damage, or damage to your car in an accident. Often there are other benefits that may come as standard on Comprehensive Cover, including breakdown assistance and windscreen cover. Obviously, Comprehensive Cover will be a fair bit more expensive as it's covering you for more risks, so it's a matter of deciding what you can afford right now. If you're a younger driver, chances are that you’ll be looking at Third Party Fire & Theft.
Q6. Does my insurance allow me to drive other vehicles?
A: There’s no simple answer to this as it will vary from insurer to insurer, and your own personal details such as your age, occupation or your type of licence. Some insurers may offer this cover as an optional extra, so it's worth checking out where you stand with your current insurer.
Q7. Would I be better off remaining a named driver on my parents’ policy or getting my own policy? Short-term vs long-term?
A: It all depends on how often you're driving your parents’ car. If you're only driving it the odd time, then you’d be better off as a named driver on their policy. But if you take out a policy in your own name, then you will start to earn your own No Claims Bonus – which will save you a lot after the first year.
You might also be interested to know that if you're a named driver on your parents’ policy, then some insurers (including RedClick) will give you a Named Driver Discount for the number of full years you were named on their policy without any claims. This will stand to you when you take out your own policy.
If you have your own car, things are different, and the insurance should be taken out in your name. Insuring a vehicle that you own in your parents’ name is known as ‘fronting’ and could result in your policy not being valid.
Q8. Any advice on buying a petrol or diesel car? Petrol is cheaper to insure but diesel is more fuel efficient?
A: This is a bit of a common misconception. Petrol cars are not necessarily cheaper to insure as the overall power of the vehicle is generally more relevant than the vehicle’s cc.
Q9. What is the cheapest car to insure?
A: Unfortunately, it's impossible to say what is the cheapest car to insure, as there are many factors that make up the price. In general, however, you should look at cars with lower powered engines, with no modifications. Also bear in mind that cheaper older cars may not always be the cheapest to insure, and some insurers will not insure vehicles over a certain age. For more information check out the blog about the best cars for young drivers.
Q10. What types of cars are more or less likely to get insured?
A: It’s good to know what type of car you should be looking to buy if you want to get insurance. The following factors will often reduce the likelihood of you getting insurance, but it will also depend on your own personal details:
- Very old cars
- Cars with modifications – especially performance enhancing modifications
- High powered cars
- Cars that have been previously written off
Q11. How much does the age of a car affect a quote?
A: The age of a car can very definitely affect the price and often insurers will not cover older cars. Some insurers will not accept cars over 10 years old, but others (including RedClick) will accept cars up to 20 years old.
Q12. What is NCB Protection?
A: Full No Claims Bonus Protection is an optional cover – usually available at an extra charge when you have four or more years NCB (No Claims Bonus). The conditions may vary slightly by insurer. At RedClick, you can have one claim in a year without your NCB being affected. For example, if you had five years NCB and had no more than 1 claim per year, then your NCB would stay at 5 years. Some insurers may have different rules so it’s best to check with your insurer. You should also note that your NCB years are protected but your premium may still be impacted by claims you make on your policy. Again, if you’re unsure about this, I suggest that you check with your insurer.
Step-back protection stops you from losing all your hard-earned No Claims Bonus in the event of a single claim.
Q13. Can a year of named driver experience be counted towards a no claims discount?
A: It varies from insurer to insurer, but there is often an introductory discount for named driver experience until you earn your own no claims discount. After a year of driving, for example, the No Claims Discount you’ve earned will replace your named driver experience - rather than being added together.
"Cheaper older cars may not always be the cheapest to insure, and some insurers will not insure vehicles over a certain age."
Q14. What is Step Back?
A: This may sound a bit confusing, so let’s simplify it for you right away. Step-back protection stops you from losing all your hard-earned No Claims Bonus in the event of a single claim. It applies when you have four or more years NCB and may be added as optional cover or may be included as standard depending on your insurer. If you have four years NCB and had a single claim, it would ‘step back’ to one years’ NCB, while if you had five or more years NCB, then you would step back to 2 years NCB. RedClick’s policy includes step back protection as standard on our policies.
Q15. Do students get any discounts?
A: There is no specific student discount at the moment. If you're a student and want to keep your costs to a minimum, check out this article for top cost-saving tips.
Q16. It seems the only way to get cheaper insurance these days is to complain. I see this online all the time. Is it not unfair on the rest of us that these people kick up a fuss and get money off?
A: When a customer complains online, we will generally ask for their policy reference so we can review the details in full. We will not discuss personal policy information publicly. We can then discuss ways they can reduce their cost such as taking a lower level of cover e.g. reducing cover from Comprehensive to Third Party, Fire & Theft or removing optional covers such as Open Driving or Protected No Claims Bonus.
Q17. Do insurance companies purposely set high prices for certain groups in order to persuade them to go elsewhere?
A: No – that’s definitely not the case. Insurance companies set their prices at a level that covers the risk based on their own experience. If an insurer has had a poor experience with a certain type of risk, their prices will be higher for this group of drivers. Generally, an insurer would just decline a risk if they did not want to insure it and this would be part of their acceptance criteria, i.e. the types of risk they're prepared to cover.
Q18. How many penalty points do you need to collect before it affects your premium? And how much will it be affected by?
A: This is a question we get asked a lot. There isn’t a set limit, and it varies from insurer to insurer. As a general rule, however, many insurers will not give you a quote once you have more than 4 or 5 penalty points. For more info on this topic, you can check out our blog article on penalty points for learner/novice drivers.
Q19. What am I supposed to do if no one will even give me a quote? Or if the quotes I do receive are so high I can’t afford it? Am I just supposed to wait until I’m older?
A: This is frustrating, but there is something you can do about it. All motor insurers in Ireland are signed up to the Declined Cases Agreement. This means that if you have approached at least three insurers and have not been able to get a quote, then you can apply to the Declined Cases Committee of Insurance Ireland.
Normally, the first insurer you approached will be required to give you a quote under the agreement. If you have been insured before, however, the last insurer you were with will be required to give you a quote. For more details and assistance, you can contact Insurance Ireland on:
Tel: 01 676 1914
Email: declined@insuranceireland.eu
It’s also worth considering that if you’ve received a quote but it’s higher than you can afford, you can look at ways to reduce your costs, including:
- Buying a lower powered car and avoiding any car modifications.
- Passing your driving test.
- Taking a lower level of cover, e.g., reducing cover from Comprehensive to Third Party Fire & Theft or removing optional covers such as Open Driving or Protected No Claims Bonus.
- You can also look at splitting the costs over the year through the direct debit option. This allows you to avoid having to shell out all at once for your Car insurance cover.
Q20. I’ve passed my test and now my premium has gone up, is this normal?
A: That sounds unfair, but in most cases, it wouldn’t go up. An individual insurer, however, could take the view that once you pass your test, you will be driving unaccompanied so you could be an increased risk as you would be driving alone for the first time.
Q21. Why do insurance companies automatically assume young drivers are bad drivers?
A: I know that it sometimes feels like that, but RedClick definitely does not assume young drivers are bad drivers – and our prices are proof of this. As a general rule, insurers set their prices based on the claims experience of similar policies.
Because young drivers have less experience on the roads, they have an overall worse claim experience than older drivers. There’s some good news, however. When we set our prices, we take into account many factors other than just age. We reward you for the number of years you have held your licence – and also the number of years you have been driving. Your premium will also be reduced based on any claim-free years as a named driver or as a policyholder.
Other useful links:
- N and L Plates for Beginner Drivers: Everything You Need to Know
- Where To Start: Car Recommendations for New & Learner Drivers
- 6 Tips for Buying a Used Car
- Choosing a driving instructor
- Know the Penalty Points for Learner and Novice Drivers