Young driver's insurance

Young Driver's Insurance - A Guide

It’s no secret that getting young driver's car insurance can be a nightmare. Not only does it take a lot of work to get the best quote, but at the end of the day, that quote is still eye-wateringly high.

MoneySuperMarket found that an average insurance quote for a young driver aged 17-24 is £1,103 for the year, while Money Saving Expert found that for 17-22 year olds, the average quote was over £1,400.

However, it is not all doom and gloom; there are ways in which you can bring the cost down, and in some cases, this can be a substantial drop.

Why does car insurance cost so much for young drivers?

In a nutshell, young drivers are seen as a big risk when it comes to car insurance. The first few years after passing your test see you develop greatly as a driver. But until that point, insurers recognise that you’ve not been on the road for long and see your lack of experience as a risk.

Unfortunately, this is an unavoidable situation and is the same case for every new or young driver. The trick is to ensure you take action to bring this cost down through factors other than your age or time as a licensed driver.

Young driver's insurance

Bringing the cost down

First things first: get the right car. Choosing a car that not only matches your driving ability but also allows for a cheaper insurance premium is of paramount importance for young drivers. Insurance groups run from Groups 1-50 with the lowest of these offering the cheapest premiums.

Going for a car that sits in the first five of these groups is advised, while features on the car such as Thatcham alarms and immobilisers will also help bring costs down. Take a look at the kind of models we’ve pinpointed as perfect first cars.

Fully comp: getting the right type of insurance. While most young drivers might assume the cheapest option is go third party (minimum level of insurance by law) or third party fire and theft (TPF&T), this is actually more times than none more expensive than fully comprehensive.

Insurers often see third party car insurance as an option riskier drivers take to try and save money and therefore increase the cost. Money Saving Expert found that annual savings of around £1,500 could be had by choosing fully comprehensive over the third party alternative.

Taking names: add named drivers to the policy. Not just anyone, however; adding the names of responsible drivers you know such as your parents or older siblings is a great way of reducing the cost of your premium. This is because it increases the chances of someone with experience driving your car, so the longer they’ve been driving and the better their driving history, the more money you should be able to save.

Young driver's insurance

The ‘black box’: going for telematics. For most, this is not an option to take lightly, but the truth remains that it can bring your premium down considerably. While you can find out more about telematics on our dedicated page, the basics of this technology see your car and driving habits tracked to see how good or bad they are.

The better you drive the more the insurance company will trust you as a driver; drive inadequately and you’ll suffer higher costs. Obviously this will force you to drive in a certain manner, but this will save you money and hopefully turn you into a competent and safe driver.

Driving excess: how much is too much? A quick way to bring down your premium is to give yourself a higher voluntary excess. This is the amount you’ll have to pay if you make a claim on your insurance and you’ll need to ensure you can afford it if the situation arises.

When looking for cheaper car insurance as a young driver, it is often a good idea to play around with excess amounts to see what happens to the cost of the premium.

Combo: multi-car policy. If you live at your parents or with a partner, see how much a multi-car policy can save you. Most discounts are around 10%, but in some instances you can get a discount in the region of 20-25% for all on the policy to take advantage of.

Just remember that a joint policy means the renewal date is the same for all cars included.

Role play: changing your job description. It is amazing how much your job title can affect your car insurance premium - at any point in your life. While sticking to something that is relevant to your actual job role, take a look at any other titles that could be used and see if it knocks any money off your insurance cost.

This isn’t to say you should lie about what you do for a living, but a key example of slightly bending the truth would be how insurance for an Illustrator is often cheaper that it is for an Artist…

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