"You might think taking out a lower level of insurance is a good way to save, but third party policies are rarely cheaper than fully comprehensive ones. You’ll get a higher level of cover with a fully comp policy too, so it’s often the most sensible choice for a young driver."
What level of car insurance do I need?
Just like anyone else, young drivers need at least third party insurance to legally drive on the road. But this isn't always the best, or cheapest, option.
Exactly what type of cover you need depends on your personal circumstances, and what you want from your cover.
To give you an idea of what each level covers, here’s a rundown of the 3 main ones we compare at Confused.com:
How much do young drivers pay for car insurance?
Average insurance costs for young drivers aged 17-25*:
Third party, fire & theft
*Confused.com data October - December 2023.
Young drivers pay far more than the national average of £995** for fully comprehensive car insurance.
There are a number of reasons for this, but it mainly comes down to risk. Insurers see younger drivers as riskier to insure due to their lack of experience on the road. They then assume this lack of experience puts new drivers at higher risk of being involved in an accident.
There are stats to support this perception too: government figures show that 20% of all serious or fatal car accidents involve a driver aged 17-25***.
There are other factors other than age that go into calculating your car insurance costs, but it's still a significant one.
**Confused.com price index data Q4 2023
***According to government statistics 2021
When will my insurance get cheaper?
Average insurance costs by age*
17 year olds
21 year olds
25 year olds
30 year olds
*Confused.com data October - December 2023.
Although it can be expensive at the start, the good news for younger drivers is that as they age, their insurance should get cheaper.
There are a few benchmark ages where the cost of your cover should come down significantly.
Assuming everything else stays the same, such as the car you drive and where you live, you should see a noticeable drop in costs at age 21, and again at 25*.
After that your costs should continue to decrease until you hit around 75*, where they begin to rise again.
Our expert explains
Louise Thomas, our motor insurance expert, explains how younger drivers can save money on car insurance. The information in this video is also available as a text transcript.
What types of insurance could save me money?
There are a few types of insurance that could save younger drivers money, though this isn’t guaranteed. But if you’re looking for a way to bring down your costs, they could be worth considering.
This is the highest level of car insurance available, and it’s often the cheapest too. In fact, our data shows that younger drivers pay £2,296 on average for fully comprehensive cover, compared to the £3,851+ they pay for third party insurance. With fully comprehensive policies you’re covered for any damage you do to a third party, their vehicle or their property. But unlike third party policies, you’re also covered for any damage you do to your own car, person or property too.
Otherwise known as telematics insurance, these policies monitor your driving, either through an app or a device fitted to your car. Some are cheaper than standard policies from the start. Others award you a score based on how well you drive.The better your score, the better the price you may be offered when you renew your policy at the end of your 12-month cover period. Even if you do have to wait to see a saving, black box policies can still be a handy way for young drivers to cut their costs.
If you’re only an occasional driver, or you’re home from uni for the summer and only need a few weeks of insurance, a temporary policy could help you save.These short term policies can last for anything from 1 hour all the way up to 28 days, and give you the same level of cover as standard fully comprehensive insurance, without the need to commit to a 12-month policy. Young drivers pay around £32++ for 1 day of cover, but the longer you take out cover for, the cheaper your policy should be.
+Confused.com data October - December 2023, based on cost of a policy for drivers aged 17-25.
++Based on average customer prices paid from Tempcover data for learner drivers December 2023.
How else can young drivers get cheaper insurance?
While your insurance should naturally get cheaper as you age, there are a few things young drivers can do to get a better deal in the meantime.
- Add a named driver
- Pay annually
- Estimate your mileage accurately
- Consider changing your excess
- Compare quotes
Add a named driver: Adding another, more experienced driver to your policy is an easy way to save. This could be a partner, parent or other family member, but whoever you add should at least occasionally drive the car.
Pay annually: Paying upfront, rather than monthly, is one of the quickest ways to save. Our data shows that paying annually could save young drivers up to 20%* on their insurance, if they can afford to do so.
Estimate your mileage accurately: When you get a quote, we’ll ask for your estimated annual mileage. It can be tricky to get right, but being accurate is an easy way to save. Insure yourself for far too many miles, and you could be paying for cover you don’t need. The average mileage selected by our customers is around 6,500*.
Change your excess: Your excess is the amount you agree to pay towards the cost of any claims you make. The most common excess chosen by our customers is £250*, but opting to pay a bit more, or sometimes even a bit less, could help bring the costs of your cover down. Experiment with your excess amount when comparing quotes to see if you could save.
Compare quotes: it’s quick, easy and could save you money. We’ll show you our best quotes in just a few easy steps, helping you find the cover you need for the right price.
*Based on Confused.com data October - December 2023.
What our car insurance expert says
Types of car insurance
offers short-term comprehensive cover from one hour to 28 days.
helps protect young drivers out on the road for the first time.
lets you prove you’re a safe driver, and save money on your policy, even if you’re inexperienced or seen as high risk.
gives learners the protection to safely practice on the road.
lets you insure one or more cars on the same policy.
offers cover for owners of classic cars. For insurance purposes, a classic car can be any car that’s older than 15 years.
covers you if you use your car for work, including travelling between offices or across the country.
is a legal requirement if you're driving in the UK. Find out more about choosing the right cover at the right price.
Our customers say:
"Great service and stress free for a first time driver"
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