Young drivers pay dearly for car insurance

Driving alone for the first time can be daunting, as can the cost to insure your car if you've got P-plates. That's because car insurance providers base their quotes on the likelihood of you making a claim and assume that the less driving experience you have, the greater your risk of an accident.

For young drivers who are seen as high risk behind the wheel, insurance premiums can be sky high. For instance, a newly-licensed 18-year-old driving a 2006 Holden Barina could expect to pay at least $2500 per year for comprehensive car insurance, according to RateCity research.

Of course there are a number of things that young drivers can do to ensure you get the best available price on the cover you need. Adding an older, more experienced driver to your policy as a named driver may be a legitimate way of lowering the cost of cover.

But having a parent or older relative 'front' the policy to lower the cost of car insurance is not allowed. Fronting is when someone registers themselves as the main driver on a policy to reduce premiums when their child or other less-experienced driver is the genuine main driver of the vehicle.

Policies found to be fronted may be rejected at the time of making a claim or worse; voided, leaving the driver uninsured and seriously out of pocket particularly if the vehicle you hit is a Ferrari!

Do it the right way

There are legitimate ways to reduce the cost of your comprehensive car insurance premium and the easiest way is to compare car insurance policies online to find the most suitable cover for you at the best price.

Paying a premium upfront in one lump sum as opposed to monthly instalments can significantly reduce your outlay, depending on the insurer. As can reducing the amount of options on the policy, while adjusting the amount of excess paid at claim time may alter the premium.

Adding a security system and parking your car in a locked garage at night will reduce your risk of claiming in your insurer's eyes, which will be reflected in cheaper premiums.

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