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Just some of our providers who specialise in car insurance for young drivers
Young drivers are generally less experienced behind the wheel than older drivers. Unfortunately, that means they’re also more likely to have an accident or need to make an insurance claim. Insurers use their own claims data to back this up and cover the extra risk involved in insuring young drivers by charging higher insurance prices.
A mix of factors go into working out how much car insurance costs. Understanding some of them could help you get cheaper quotes:
The car you’re driving: Its age, engine size, value and average repair cost help decide a car's insurance group. There are 50 groups from 1 to 50 and generally the lower the group the cheaper your quotes will be.
Your details: Your age, where you live and your job are just some of the things insurers look at.
The level of cover you’re looking for: Whether it’s comprehensive, third-party, or third-party fire and theft, the level of cover you choose will influence price. Even though it offers the most protection for you and your car, comprehensive cover isn't always the most expensive, so double check all the options before you buy.
Voluntary excess: The excess is the amount you agree to pay towards an insurance claim. Generally the more you’re willing to pay the lower your insurance price. But you should only agree on an excess you can afford to pay after an accident.
Your driving history: How long you’ve been driving for, how many years no-claims bonus (NCB) you’ve got and any points on your licence will all affect your car insurance prices.
These factors apply to drivers of all ages. But this information alone isn’t enough to base a quote on, so insurers also use statistical data from all of their customers to work out the level of risk. Higher risk equals higher prices.
How to save money on car insurance for young drivers
Rather than waiting a couple of years to build up your no-claims bonus, there are other ways you can reduce the price you pay for young driver insurance:
1. Think about the car you drive
Powerful cars in high insurance groups are more expensive to insure. They also cost more to repair if you’re in an accident. Choosing a smaller, cheaper car can help save on insurance, especially when you’re a young driver with less driving experience.
2. Add extra security
A car fitted with a security device like an alarm, immobiliser or a tracker means it’s less likely to be broken into or stolen. By making your car secure, insurance companies are more likely to offer you a cheaper quote.
3. Add a named driver
If you’re an inexperienced driver, adding someone with more experience like a parent as a named driver on your policy could bring down the cost. You should only add named drivers who drive the car and the main driver should always be the person who drives the car the most. Getting this wrong could invalidate your insurance. Some insurers allow named drivers to build up a NCB, but most won’t.
4. Increase your voluntary excess
Your prices can change based on how much excess you’re willing to pay. Only enter an amount that you can afford to pay if you have an accident. Over-stretching yourself could mean you can’t make the payment or you end up in debt.
5. Shop around
Rather than going direct to an insurer and getting just one price, by comparing insurance quotes from a range of insurers you’re more likely to find an affordable policy. We compare quotes from up to 120 to save you time and money.
6. Choose a telematics policy
Opting for a telematics or black box policy can make insurance more affordable, especially for young, inexperienced drivers. Having a small box fitted to your car or using an app means the insurer can keep an eye on when, where and how you drive so they can reward good driving with cheaper insurance. Policies will sometimes include restrictions around night-time driving and how many miles you can drive but they can be a good way to get started.
Getting yourself a car that is cheap to insure is a good place to start with bringing down the cost of being a young driver.
As we’ve already said, cars in higher insurance groups tend to be more expensive to repair or replace.
The insurance group a car is in can be affected by:
Performance: the acceleration and top speed.
New car price: it’s no surprise that the more expensive a new car is, the more it costs to replace.
Parts pricing: the cost of replacing car parts if it’s involved in an accident. This is worked out using a standard list of 23 parts that are the most commonly damaged.
Security: how secure the car is against theft. The better the manufacturer-fitted security, the higher the chance of the car being placed into a lower insurance group.
If you haven’t already bought your car, take a look at our list of the top 10 cheapest cars to insure in 2020.
The type of insurance you choose may depend on if you’re still learning to drive or you’ve passed your test.
- Learner driver policy: if you’re still on a provisional licence and need to practice driving, a learner driver policy can provide short-term cover for you while you learn
- A standard 12-month policy: can be taken out with a provisional licence and updated once you pass your test. If you’ve already passed your test, this is the most common type of insurance policy and can be paid for monthly or in one go. Choosing to pay monthly can be good as a young driver to spread the cost but it will end up costing more than if you pay for it one go.
- Black box or telematics policy: these policies involve using an app on your phone or fitting a small device to your car to monitor how well you drive. The insurer used the data to work out your car insurance price. These policies are particularly useful if you’re a new or young driver wanting to prove you can drive safely. To get a better idea of how telematics works, take a look at our telematics explained guide.
Depending on the type of policy you go for, you might be able to choose the level of cover you get. With learner and black-box insurance the insurer may set the level of cover but on standard 12-month policies there are 3 to choose from:
Fully comprehensive: offers the highest level of protection, covering you and other drivers from damage caused by you. It often works out to be the cheapest option too.
Third-party: this is the minimum amount of cover you legally need to drive. It covers damage caused to someone else’s property, but doesn't cover repairs, theft or fire damage to your own car.
Third-party, fire and theft (TPFT): third-party fire and theft is an expanded level of cover that protects you against damage caused to someone else’s property, but also includes cover for your car against fire or theft.
When does car insurance get cheaper for young drivers?
There’s no magic number, turning 25 won’t suddenly change how your insurance is calculated. But, if you drive sensibly and build up your no-claims bonus (NCB) you should see your prices reduce over time.
Can I drive other cars on my policy?
Driving other cars (DOC) can be included on comprehensive policies, but young drivers don’t usually get the DOC benefit. Most insurers have restrictions when it comes to DOC, and being under 25 pretty much rules you out.
Can a dashcam lower car insurance costs?
Some providers offer a discount if you have a dashcam installed in your car. Dashcams provide useful evidence if you’ve had an accident, and some insurers think it makes drivers more careful on the road. When you’re getting a quote, we’ll ask you if have a dashcam fitted to your car. If you do use one, you can use this question to let us know.