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.

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.

Young drivers pay the most for car insurance compared to other age groups. Our latest car insurance price index shows on average young drivers pay the following:

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.