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Whether you're a student, in your first job, or starting a young family-it's pretty much guaranteed that if you are in your twenties then most car insurers will hike up your premium because of your age.
It doesn't matter whether you have a no claims bonus, or if you've been in a few accidents, the majority of insurers will make anyone in their twenties pay over the odds for their insurance.
According to the Association of British Insurers' report, 'Young Drivers: Road Safety and the Cost of Motoring', for a young driver, insurance can account for more than 50 per cent of their motoring costs, compared with just 6 per cent for an experienced driver. It clearly pays to look around when trying to find the best deal.
swiftcover.com, which was voted cheapest motor insurance provider in 2008 by moneysupermarket.com, ran a comparative study to find out how much drivers in their twenties would pay for their car insurance with a number of insurance companies. In order to provide a balanced picture, four examples of men and women were chosen to show a range of ages, locations, car makes/models, occupations and driving histories.
Car insurance company Endsleigh targets students and younger drivers through its marketing campaigns but, when it comes down to hard cash, it is not as competitive as other insurers. On example four (see below), Endsleigh's insurance was £372.72 versus swiftcover.com's quote of £185.25, with a higher excess to pay in addition to the £190.47 in extra premium cost.
Motorcycle insurance, UK motorbike cover, bike insurance, scooter insurance and moped insurance.Tina Shortle, marketing director of swiftcover.com, comments: "Although young drivers are statistically proven to have a far higher rate of accidents, it does not necessarily follow through that this is the case for all drivers in their twenties. We believe at swiftcover.com that it is unfair for all drivers to pay over the odds simply because of their age. Through sophisticated analysis, we are able to ensure that a twenty something is treated as an individual not a number."
She added: "We were surprised by the differences in premiums, in a set of scenarios which were all quite different. One of the advantages of swiftcover.com is the fact that our efficient online service keeps our premiums lower as we keep administration running costs to an absolute minimum. Our message to all young drivers, both men and women, is to shop around - and certainly not to settle for your renewal premium until you have made sure it is competitive."
Risk: 25 year old married couple, both bank workers; Citroen C1 VIBE 2005; Postal area YO24; 5 years NCD (no claims discount); No protected NCD.
| Insurer | Annual Premium (cheapest top) |
£difference in premiumn | Total excess |
| Swiftcover.com | £182.05 | £75 | |
| NU Simple Cover | £208.94 | £26.89 | £295 |
| Hastings Direct | £225.56 | £43.51 | £100 |
| LV | £348.99 | £166.94 | N/A |
| Average Saving | £79.11 |
Risk: 21 year old female; hairdresser; Volkswagen Polo E (55) 2006; Postal area TS12; No protected NCB; 5 years NCD; drives 8,000 miles per year.
| Insurer | Annual Premium (cheapest top) |
£difference in premiumn | Total excess |
| swiftcover.com | £330.00 | £550 | |
| Virgin Money | £364.35 | £34.35 | £500 |
| Endsleigh | £443.46 | £113.46 | £550 |
| Shelia's Wheels | £484.50 | £154.50 | £250 |
| Average Saving | £100.77 |
Risk: 22 year old male; student; Ford Ka Style 2003; Postal area NP44; No protected NCB; 5 years NCD; Drives 5,000 miles per year.
| Insurer | Annual Premium (cheapest top) |
£difference in premiumn | Total excess |
| swiftcover.com | £187.95 | £300 | |
| Churchill | £271.00 | £85.05 | £250 |
| Virgin Money | £281.40 | £93.45 | £250 |
| Tesco | £319.29 | £131.34 | £250 |
| Average Saving | £103.28 |
Risk: 28 year old male; plasterer; Skoda Octavia Sport FSI 2007; Postal area TR1; No protected NCB; 5 years NCD; Drives 15,000 miles per year.
| Insurer | Annual Premium (cheapest top) |
£difference in premiumn | Total excess |
| swiftcover.com | £182.25 | £400 | |
| Privilege | £275.10 | £92.85 | £400 |
| Tesco | £367.50 | £185.25 | £400 |
| Endsleigh | £372.72 | £190.47 | £500 |
| Average Saving | £156.19 |
29 August 2008 © Moneyextra.com
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