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When you’re young, getting a car can unlock a world of possibilities. But it comes at a cost, as young driver insurance is typically the most expensive kind of cover you can get. Fortunately, there are still ways to find cheaper car insurance quotes for young drivers, as we explain in this guide.
Young driver insurance is car insurance suitable for drivers aged 17 to 24. It’s not a specialist policy or a separate product, but it’s usually more expensive than other car insurance types. This is because young drivers are considered more of a risk for insurance providers due to their lack of driving experience.
Car insurance for young drivers works in the same way as other car insurance types and is designed to protect you financially if you are involved in a road accident. Your exact cover levels will depend on the policy type you choose and what your chosen provider offers.
The bad news is that, as a young driver, you’ll be paying some of the most expensive premiums around. The good news is that, if you’re a careful driver, that premium should only get cheaper year-on-year.
For example, the average annual comprehensive car insurance policy cost £1,268.54 for drivers aged 17 to 19, compared to £483.40 for drivers aged 50 to 64. That’s based on policies purchased from MoneySuperMarket between October and December 2023.
Car insurance for those aged between 17 and 24 is more expensive because drivers in this age range are less experienced on the road and are statistically more likely to cause more expensive accidents compared to older drivers.
According to the most recent data from the ABI, in 2022 the average claim made by drivers aged 17 to 20 cost £6,651 – almost £800 more expensive than the second highest age group, drivers aged 86 to 90.
Younger drivers are also more likely to make a claim. In 2022 nearly 8.8 per cent of policies taken out by 17 to 20 year olds saw a claim made, easily more than any other demographic.
Insurers have to mitigate this increased risk by charging higher premiums. However, the exact cost of young driver insurance will also depend on factors such as your occupation, the type of car you own, your driving habits, your car’s security and your car’s mileage.
One in five drivers (20 per cent) crash within a year of passing their test and more than 1,500 young drivers are killed or seriously injured on UK roads each year. (Source: Brake)
Although it can be hard to find cheap car insurance for young drivers, there are a number of ways you can reduce the amount you pay for your premiums. We’ve put together the following tips to help you find the cheapest car insurance as a young driver available:
There are certain types of car insurance that are designed to help young drivers save money. These are outlined below.
With telematics or black box car insurance, a black box tracker is fitted to your car so your insurance provider can monitor your driving. Insurers will be tracking your speed, how sharply you brake, the time of day or night you drive, as well as how far and where you drive. Insurers then use this data to adjust your premiums accordingly. Someone who sticks to the speed limit and drives during quieter times and on quiet roads, for example, will pay less compared to someone who drives fast at night or during rush hour on busy roads. Some insurers might adjust your premiums every month, while others will offer a discount at renewal.
Benefits of telematics insurance:
Short-term or temporary car insurance is a flexible way to get cover for a short period of time. Policies can last for as little as one hour and up to around 30 days, although some policies will last up to three months. This can be helpful (and potentially cheaper) if you’re using someone else’s car to learn to drive or if you’re at university and only need to use a car when you are home for the holidays. Policies include cover for loss, theft, fire or vandalism, legal liability, personal accident costs and legal expenses.
Benefits of short-term car insurance:
With pay-as-you-go car insurance, also known as pay-per-mile insurance, a device tracks the number of miles you drive. You’re then billed at a pre-agreed rate depending on the number of miles or number of hours you’ve racked up.
This can make it a much cheaper option if you don’t drive far or if you don’t drive on a regular basis – for example, if you sometimes drive your parent’s car. An additional fixed cost will also cover your car while it’s parked. Fully comprehensive cover is usually offered as standard and you can still build up your NCB.
Benefits of pay-as-you-go car insurance:
Being added as a named driver to another driver’s (typically a parent’s) policy can be a lot cheaper than taking out a separate policy for a young driver. However, as a named driver, you must drive the car less often than the main driver, otherwise you could be found guilty of something called fronting, which is illegal. Alternatively, you could add a more experienced driver to your own car insurance policy to reduce the cost. In this case, you (as the main driver) must drive the car more frequently than the named driver.
Benefits of being added as a named driver:
There are three main types of cover available for young drivers. It’s important to consider each one carefully before choosing what works best for you.
Additionally, you can choose from a range of optional extras to add to your policy. Make sure you choose these carefully, as you’ll usually pay more for this cover. Depending on your provider, and what is already included in your level of cover, you might be able to choose from:
All cars are put into insurance groups ranging from one to 50. This is based on factors such as the car’s size, speed, power and cost of repairs. Generally, the smaller and less powerful the car is, the less you’ll pay for insurance.
Below, we’ve listed the 10 cheapest car types for 17 to 25 year olds to insure, based on average annual premiums data from provider Admiral. While these premiums aren’t what you’d receive as a young driver, they’re still indicative of the kind of car you should consider to save money on your insurance.
When you’re looking to get car insurance as a young driver, you’ll likely need to have the following to hand to compare quotes:
Once you have the above, you can submit your details and get a quote for young driver car insurance. Remember when comparing not just to focus on price – a cheap car insurance policy will work out more expensive in the long-run if it doesn’t provide the cover you need.
The cheapest car insurance group is Group 1. There are 50 insurance groups, and group one is the cheapest, while group 50 is the most expensive. Cars in group one tend to have good security and safety features, are cheap to repair, have a low market value and a smaller engine size.
Depending on the insurer, this will be when you are over 24 or 25. Generally, young drivers are considered to be between the ages of 17 to 24.
If you take a driving course, you probably won’t save a huge amount on your insurance costs, but it can still be good practice, as it can help you to improve your driving skills. Some insurers offer a discount if you take an advanced driving course such as IAM RoadSmart’s Advanced Driver Course or the Pass Plus course. However, it’s still important to shop around and compare quotes elsewhere, even if you qualify for this discount.
