How Is My Insurance Premium Calculated?

When calculating your Young Driver insurance premium we take into account several different factors to work out the final premium you will pay. Here’s a summary of some of those factors:

Usage – This is one of the main factors insurance brokers and insurance companies will use when calculating your Young Driver insurance premium. The more things that you use your car for increases the risk of an incident occurring. If you only use your car for Social, Domestic & Pleasure activities, such as going to the shops at the weekend or going out in the evening, then this may attract a lower premium.

Those that use their car for commuting to a place of business or a place of education, such as a school sixth form or college will, in most cases, face higher premiums than those just using their car for social activities. One of the reasons for this is because you’re more likely to be commuting during rush hour, especially if you’re using your car to commute to work, which again increases the risk of you being involved in an incident. However with a Think Young Driver insurance policy you don’t pay extra for commuting.

There are some drivers that will need to use their car for business purposes and may have a policy which has Social, Domestic and Pleasure, Commuting and Business listed under the usage category, which will of course mean potentially more miles and an increased risk of an incident occurring.

Mileage – This is generally linked to Usage; the more you use the car, the more miles you are likely to do, which increases the chance of an incident occurring. The amount of mileage you do usually correlates with how you use your car. So if you use it for social reasons only, you are less likely to need the same amount of miles as someone who uses their car for commuting or even business purposes. However, if you use your car for social reasons only but regularly do cross country trips and long journeys, you may end up using more miles than someone who only uses their car for commuting.

Where the car is parked – Depending on the usage of your car, the insurer will want to know where you park your car when it’s not in use. This doesn’t mean every time you park your car, but more specifically how it’s parked when you’re at home. Plus, if you use your car to get to work, they may also want to know where the car is parked whilst you are at work. The more secure your car is, the better, so if you are able to keep your car in a locked garage with an alarm, you may find that the premium will be lower than if you parked it on the street outside of your house. 

Driver experience – The average cost of a Car insurance policy, whether it’s for a young driver, a convicted driver or anyone else, will heavily depend on the driver’s previous driving record. Obviously, those who are looking for Young Driver Black Box insurance quotes, may not have much or any driving experience, excluding their driving lessons of course.

A lack of driving experience usually means a higher Car insurance premium for young drivers, which is why the industry came up with the black box, to help reduce costs for young drivers. A black box isn’t the only thing that can help a young driver reduce their premium, Advanced Driving qualifications can not only improve driving skills but can also help bring down premiums too. It is worth doing some research to make sure you get the right Advanced Driving qualifications as ones that teach you to drift round a corner may not have the desired effect!

Claims and Convictions – For those young drivers that do have some driving experience (remember you are eligible for a Think Young Driver insurance policy up until you turn 25), having any claims or convictions (motoring or otherwise) will have a negative impact when enquiring about a Young Driver Black Box Insurance quote!

The car you would like to insure – This is one of the most important things the insurer will consider when calculating your Young Driver Black Box insurance quote. Driving a sensible, small engine and low powered car is going to be the best bet to get a cheaper Telematics insurance quote. However there are certain models that are historically associated with poor driving, and even old vehicles might not garner a competitive quote. It’s always worth doing a bit of research to see what cars might get you the best insurance quote.

Occupation – Without the reliable data of the Telematics insurance black box, insurance companies use things such as your occupation to try and figure out what kind of driver you are likely to be. Those in occupations that are statistically more likely to be involved in an incident can face higher premiums as a result, in a similar fashion to how all young drivers fall victims to negative driving statistics for their age group. This further highlights the importance of getting a Black Box insurance policy to help you prove to insurers that the statistics do not reflect you as a driver.

Named Drivers – One area where you may be able to bring your Young Driver insurance premium down is by adding Named Drivers, which are usually family members such as parents, onto your insurance policy. Adding Named Drivers that have a good claims free driving record, a clean licence and a strong No Claims Bonus can really go far in some cases.

However when adding Named Drivers on to your Telematics insurance policy it’s important to remind them that their driving is also being monitored when they are driving your car. This is because the black box is unable to distinguish between which drivers on the policy are behind the wheel and therefore must record all data. It’s also important to remember that in some cases people who are not Named Drivers on your insurance policy may drive your vehicle such as mechanics – so you should also inform them that there is a black box fitted to your vehicle. 

Young Driver Insurance Add Ons

When purchasing an insurance policy, whether that’s Young Driver insurance or even Home insurance, there will be certain add on products offered to you. The cost of these additional products will usually be in addition to your Young Driver insurance premium.

One of the add ons mostly like to be offered is Breakdown cover, which is useful to take out with your insurer as it means one less thing to worry about and sort out when insuring a car. It can even sometimes be similarly priced or even cheaper than buying it direct from some dedicated Breakdown cover providers.

Another useful add on which will likely be offered to you, is Windscreen cover. Even though we offer a Comprehensive insurance policy, covering your vehicle against damage, you can opt to buy Windscreen cover separately. Having the separate cover will enable you to make a future claim regarding your windscreen, without it affecting your No Claims Bonus from your Young Driver insurance policy.

Renewing Your Young Driver Insurance Policy

After a year of being insured under our Young Driver insurance policy you will be given the chance to renew your cover (providing you still fall into the designated young driver age range) and the price of the premium may change. Hopefully, through showing that you’re a good driver over the previous 12 months and proving you are a low risk, your insurance premium will be reduced. The insurer will take into account your driving score and any other relevant information gathered about your driving over the period you have been insured, to calculate your renewal premium. 

Paying Your Young Driver Insurance Premium In Instalments

We offer our customers the facility to pay for their Black Box insurance premium in instalments. If you decide to take advantage of this, there will be a charge for doing so and interest will be applied to the amount of money borrowed to fund your premium. All of this, and the specific amounts relating to your policy, including any charges, will be discussed with you before you have to make a decision to go ahead with anything. For more details, ask one of our team. 

Young Driver Insurance FAQs

If you have any more questions about getting a Young Driver insurance policy through Think Insurance then you may be able to find the answer in our extensive Young Driver FAQ section. Our FAQs include everything from questions about the Driving Score, to Can I View My Driving Information? However, if you are unable to find the answer to your Black Box insurance question or have any follow up questions, then please feel free to call our Young Driver insurance team on 0800 221 8077, and they will be happy to help you with any queries regarding insuring your car.

Get Young Driver Insurance Today

If you’re looking for a Young Driver Black Box insurance quote then you have two options; you can call 0800 221 8077 to be put through to a member of our specialist Young Driver insurance team, or you can click ‘Get a Quote’ below and a Young Driver insurance expert will get in touch to discuss your insurance needs with you.