As with all insurance policies on motor vehicles for personal use, young drivers are likely to be hit with higher policy prices. Statistical modelling shows that drivers between the ages of 17-24 are more likely to be involved in accidents on the road, resulting in higher claims within this age bracket. Because drivers in this age range will undoubtedly have less experience than those in a higher age-bracket, this is generally true. Because of this, courier driver insurance for those under the age of 25 can often lead to quite high rates for young drivers.
But there are ways to manage this. If the vehicle being used is used by multiple drivers, as is likely the case with a commercial vehicle, then having a driver on the policy with a decent history, over the age of 25, can nullify the cost somewhat. This is dependent on actual usage though as it’s considered illegal to name a more experienced driver for shared usage simple to bring a premium down without that claim being valid. If the driving responsibilities of a vehicle are shared however, this could bring down the cover for a younger driver on a policy. It’s also worth speaking to a policy provider to see what type of cover they can offer, to bring the price down. A more basic package may be appropriate if coverage is at a premium due to the drivers on it. Another way to manage the cost is by securing your vehicle. Because couriers transport goods of value, vans and vehicles used in the industry are a hot target for thieves, and insurers know this. By making sure you have alarms, immobilisers and tracking devises, recognised by your insurer, you can bring down the overall cost of a policy. This is also true by the level of security when parked at night. A locked garage will obviously help convince your insurer that the vehicle is safe. Another influence of policy cost is mileage. While it goes without saying that a successful courier vehicle will likely rack-up the miles as more couriering equals more business, being vigilant to bring your annual mileage down can help have a similar effect on your policy cost. To an insurer the simple equation is more miles on the road more likelihood of an accident. So it’s wise to attempt to manage this effectively.
It’s true that young drivers, either fairly or unfairly, often have to pay a higher premium than more experienced drivers. Because of this, these methods as well as others can help bring down those eye-watering cost and help you get out on the road doing business.
If you need cover for a driver under the age of 21, speak to an Insurance Revolution advisor and we will advise you on the best deal for you. Young drivers can be named on our policies with accompanying drivers over the age of 25 allowing them the same flexibility as other employees.