Do young drivers pay a premium for a Gap Insurance policy?
For many years it has been the case that young drivers pay much higher annual policy premiums for motor insurance than older drivers on the road. With all motor insurance seemingly seeing prices spiral over that last few years the situation for young drivers has become even more dire. Policy premiums stretching to several thousands of pounds are quite common, and in many cases a driver may spend more per year for their car insurance than the actual value of the vehicle they are insuring.
Motor insurance for young drivers
Is this situation justified? Well according to reports and statistics from organisations such as the Royal Society for the Prevention of Accidents, young and inexperienced drivers are far more likely to be involved in an accident than their more experienced colleagues on the roads. Of course this is not to say that all young drivers are bad drivers, but when taken as a whole a driver in the first few years on the road is far more likely to be involved in an accident than someone with years of experience under their belt.
So it certainly can be argued why motor insurance underwriters do charge a higher premium to drivers in this age group. Of course there are some steps you could consider to lower your premium, for example you could opt for a higher voluntary motor excess on your motor insurance policy. This may lower your annual premium, but it should be countered against the fact that if you make any claim, even for a minor bump, you will have to pay this excess before the insure will effect any repair or settlement.
How does Gap Insurance work with younger drivers?
You may be pleasantly surprised to know that a drivers age is generally not a factor for a Gap Insurance policy. Indeed other motor insurance factors such as location or vehicle rating is again not normally taken into account when looking at the price of a Gap Insurance policy. So if you are 18 or 80, the price to protect your finances if the vehicle becomes a total loss is just the same. Not bad value when you consider an 18 year old may be far more likely to have an accident, but even so you will not pay a ‘premium’ for Gap Insurance cover.