Car Insurance: The Basics
Car insurance is a necessity if you want to drive a vehicle without the risk of an expensive fine or worse, possible jail time. An insurance company issues car insurance coverage in the event of theft, an accident, or any unwanted or unforeseen occurrences. It’s fundamentally there to protect you, your vehicle, and other drivers involved in any road accidents that may occur. It also offers financial compensation, and covers property damage, injuries pedestrians, passengers, or drivers. In the United Kingdom, the Road Traffic Act of 1988 states that it is mandatory all who operate a car must be insured to protect their liability to others, regardless if you operate a motorbike, van, or car, the law states insurance is required. Those who drive without valid car insurance should understand it is a serious offence that can see you being disqualified from driving. Should you be caught driving without car insurance, you can look at a fine of up to £5,000 along with 6 to 8 penalty points on your license. The Road Safety Act of 2006 can allow for even harsher sentences for drivers who are involved in accidents or who kill while driving uninsured.
Why is car insurance for young drivers so expensive?
Cheap car insurance for young drivers is extremely rare these days with some premiums costing as much as the car itself. The main contributing factors why first-time car insurance is so expensive is due to risk and inexperience. With no driving history, insurance companies have a difficult time assessing the future reliability of a young driver. In the same breath, young drivers are also more likely to be involved in an accident as oppose to drivers over the age of 25. The Department of Transport indicates that around one in five young drivers are involved in a car accident within their first year of driving. Furthermore, car insurance for young drivers also tend to cost more because they haven’t had the opportunity to build a substantial no claims bonus amount over time.
Factors affecting how much you will pay for car insurance
There’s a wide range of factors that are considered when insurance companies calculate your insurance premiums, including:
• The type of vehicle you drive
• Location of where the car is located
• The experience and the age of the driver
• The area you reside in
• Your car’s usage
• Your history of previous claims
If you have received an offense while driving, like skipping a traffic light, it will certainly affect the amount you will have to pay for car insurance. Pricing will greatly depend on the offence and its seriousness. For instance, a driver with a drunk driver violation would certainly have higher premiums than a one who skipped a red traffic light.