Car insurance is one of the biggest cost considerations for new drivers. Here in the UK, every vehicle used on UK roads and in public places must have an appropriate motor insurance policy in place. For lease vehicles, the vehicle must be insured on a fully comprehensive insurance policy.
Before you buy or take advantage of a cheap car finance deal, it is important to check the insurance group number of the car. Typically high-performance cars or prestige models that are considered luxury car leasing attract a higher insurance group because they can be expensive to repair or replace in the event of accident, while cars in lower groups tend to attract a cheaper premium.
To keep insurance costs down, consider:
- Choosing a car in a lower insurance group in order to attract a cheaper premium
- Checking insurance costs online to compare insurance prices between providers
- Adding a telematic box (also known as a black box) which rewards careful drivers
- Adding an additional, more experienced driver to the policy to help reduce costs
- Paying for the insurance policy for entire year upfront and not by monthly direct debit
Amanda Stretton, motoring editor at Confused.com, says:
“Younger drivers tend to have higher premiums. Some age groups are paying upwards of £2,000. But if you keep a clean driving record, they're likely to go down.
“But what can you do in the meantime to keep costs down? As a new driver this can be confusing, so we’ve made some top tips to help lower the price of car insurance. And it can be as simple as looking at how you use your car.
“The trick to finding cheaper insurance is shopping around each year. Even if your renewal price is cheaper or the same. It’s likely there's another insurer offering a better price.”
Fuel is most obvious running costs for any car. In 2017, the RAC reported the average cost to fill up a car at the pumps is £66.25 for petrol cars and £67.27 for diesels, making fuel one of the most costly considerations when running a car.
When shopping for your car leasing offers, consider a vehicle with a good fuel consumption to help keep running costs low. As a general rule, a fuel consumption of 30+ MPG for Urban driving and 45/50+ for Extra-Urban driving is considered good.
Other suggestions to help keep fuel costs down include:
- Shop around to find the cheapest fuel rates in your area
- Keep your tyres inflated as lower tyre pressure increases the drag on a car, meaning you need more fuel
- Declutter your car as the lighter your car is, the less effort it needs to accelerate
- Turn off air conditioning at lower speeds as uses an incredible amount of fuel
- Use our handy Fuel Calculator to work out your monthly or annual fuel costs