If you live in UK and you are seventeen, you would probably have a great problem securing insurance for your new car. If you are male too, you can probably forget about all the money in your bank account, with companies demanding up to £1300 for someone who just qualified for license. The females of the same age though, are lucky enough not to have to pay so much considering their lower risk of getting into accidents. EEC law is supposedly making this an issue based on the grounds of discrimination, but as we can imagine, insurance companies are strongly opposing this move.
There are some factors you need to consider if you are a young driver or anybody looking for insurance because insurances are affected by several issues. The vehicle is probably the most relevant factor in determining the risk factor, all other nominal issued kept aside. Vehicles with fast engines and expensive models, preferred by the youngsters are bound to rake up the insurance rates. Every car has an insurance group number which one needs to find out about with the dealer before purchasing the car. The group number can be anywhere between one and twenty. And a car which is in group 18 invariably charges you with more insurance premium than you would want to pay for. So, if you are a seventeen year old with a fancy car, you would be paying a hell lot more than you can imagine. Now that you know this for a fact, do not go about shopping for your car by guessing the group numbers. You will be putting yourself in the risk of the unexpected if you do so. The insurance group numbers can vary greatly from car to car and even model to model. So if you heard from a buddy that a certain car has low insurance group number, you might want to find out what the model number is. This is because the change in the group number from model to model can sometimes be drastic and absolutely unpredictable.
The place you live in is a factor that many companies take into consideration. For example, if you are living in the neighbourhood that is known for its crime rate, you could do nothing but pay a higher premium because, the insurance companies consider this a high risk factor for your car to be stolen or attacked or even vandalized. For example, if you are living in London, the high traffic and the number of vehicles on road prompts the insurance companies to deduce this as more chance of you getting into an accident than if you are living in the suburbs. The area one lives in has everything to do with the premium and there is not much one can do about it.
Everyone passes the driving test. But if you have a pass plus, you are proven to be a more careful driver than the rest. Also, you can reduce your insurance costs by considering minimum coverage. If all of this sounded pretty grim and hopeless to you, you might want to look at the silver lining. A year of safe driving will ensure that at least 50% is cut off from that you paid in your first premium in the next year.