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Major insurance companies are coming up with innovative ways to help students manage their finances and drive legally on UK roads.

One of the latest ways which students are able to lower their premiums to benefit from pay-as-you-drive insurance. This system works by having a GPS device fitted to the car which transmits information about every journey the car makes via a GMS network linked directly to the insurance company who then bills the student accordingly. It is estimated that students are able to reduce their premiums by approximately one third, which can be a substantial saving.

Policy makers are also setting up different premiums depending at the time students drive their cars. The thinking behind this is that young drivers are 10 times more likely to have an accident at night and therefore raise the premiums making it far more expensive to drive at night. It is also believed that by adopting this system young drivers are more likely to think twice about using their car when they have been drinking or taken illegal substances.

Studies carried out last year by the same insurer showed that out of all the students and young people who opted for pay-as-you-drive insurance only three percent chose to drive at night, whilst the number of claims made by male drivers fell by thirty percent.

Further surveys carried out by the road safety charity Brake found that one out of eleven young drivers admitted to driving whilst under the influence of drugs and a further half admitted to using their mobile phones whilst driving.

Whilst not all insurance companies are at present able to offer pay-as-you-drive- policies many are to offer flexible payment options, which include bi-annual and monthly instalments to help spread the cost and again help students to manage their finances effectively.

It is well worth students investing their time shopping around for the best offers from insurers who do offer cover for young drivers. It was noting that not all insurance companies cater for young drivers and are unable to offer any quotations, whilst others will impose extortionately high premiums which are beyond many young people’s limited budgets.

As most young people today have access to the internet this is where they are are to find the best offers to meet their needs. The older the car and the less adaptations made the lower the premiums will be. Although many young people would prefer to drive high spec cars, those who do will find that their insurance premiums will soar.

Those who have a part-time job may benefit from lower student car insurance costs, however they should realise that to say you have a job when in reality you don’t or give deliberate false information to obtain cheaper car insurance is fraud. As such honesty is the best policy at all times. The same applies for the type of job they do, deliberating providing a fictitious job title also constitutes as fraud, therefore if the job is for example, a part time fruit packer then that is the information which should be given and the job must involve packing fruit!

If you’re looking for a quote on student car insurance visit Swinton.

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