If the cost of learning to drive or buying your first car wasn’t enough, cheap car insurance for new drivers have risen by 50% in a year. Here we explain how you can reduce costs.
Spiraling car insurance premiums affect all drivers, but new and younger drivers are hit the hardest. Drivers under the age of 24 had to fork out £1,792 in summer 2023, compared with £1,198 a year earlier, according to Compare the Market research.
Currently, 18- and 19-year-old drivers are being forced to pay some of the highest prices on record, with average premiums for the youngest drivers now exceeding £2,000 a year.
In this article we explain:
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How much is car insurance for a new driver in the UK?
According to comparison site Quotezone, the average car insurance policy for an 18-year-old is £1,207 a year. We’ve included more of their information below:
| 18 year olds only | They are only 21 years old | 18 – 24 years | 25-34 years old |
| 1207 pounds | 1260 pounds | 1192 pounds | 827 pounds |
How does Quotezone work?
With Quotezone you only need to fill in your details once and they will send your details to over 100 insurance providers in the UK. Moments later, their quotes come back to you in real time, on your screen. Don’t waste time filling out multiple forms and compare all the best offers in one browser!
The best insurance providers for young drivers
Fortunately, there are cheaper insurance policies on the market. Below are some providers that offer specialist or five star insurance for young drivers. These ratings are from Defaqto, a data company, and are specific to telematics coverage.
Why is car insurance for young drivers so expensive?
One of the most important factors that insurers take into account when calculating insurance premiums is your age.
Young and inexperienced drivers are not only more likely to be involved in a car accident, but the average cost of claims is also more expensive.
Road safety charity Brake says inexperienced drivers are less able to spot hazards. Meanwhile, youth can lead some drivers to take unnecessary risks such as speeding or dangerous overtaking.
He says that one in five young drivers crashes their car in their first year of driving. Furthermore, over 1,500 young drivers are killed or seriously injured on UK roads each year.
What type of insurance is best for new drivers?
best temporary car insurance, Comprehensive insurance is likely to be the best option for younger or new drivers as it means you shouldn’t end up with a big bill if you’re in an at-fault accident. This is because it will cover damage to your car as well as any other party involved in the accident.
In contrast, third-party-only policies only cover the cost of damage you cause to other cars and property. You will have to pay for any repairs to your car and it will not be covered for theft.
Third-party fire and theft policies offer slightly more cover and will foot the bill if your car is stolen or damaged in a fire.
Although you might think that third party policies will be the cheapest because they offer a lower level of cover, this is often not the case. This is because insurers have found that these policies tend to attract higher risk drivers.
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How to get cheaper car insurance for new drivers
Car insurance for young drivers will always be more expensive than for more experienced drivers. Even so, there are still ways to cut costs:
- Consider a black box policy. Also known as “telematics,” these rules involve placing a device on your windshield that monitors your driving. This includes your speed, braking and turning, as well as the time of day you are driving. It allows the insurer to give you a personalized premium based on your driving.By driving safely and reducing the level of night driving, young drivers can significantly reduce their insurance costs.
- Ask your parents to add you to their policy. Another option is to become a ‘designated driver’ on your parents’ insurance. This will increase the cost of their coverage, but it will not be as expensive as a separate policy. However, this means that you can only drive your parents’ car and they have to use it more than you.Pretending that you are the prime mover when you are not is a form of fraud known as impersonation and can invalidate the policy. You also need to bear in mind that if you make a claim, it will affect your parents’ no-claims discount – something they may not be too happy about.
- Shop around. It’s always a good idea to use a comparison tool, which can potentially help you get the best deal. Confused.com says 51% of its customers could save £501 a year by shopping around. Just make sure the policy offers the level of cover you need before you accept the cheapest offer.
- Opt for a less powerful car. Car insurers see powerful cars that can accelerate quickly as more dangerous, which increases the cost of your policy. When you start driving, you’ll save on insurance if you choose a cheaper model.
What is the cheapest car to insure for new and young drivers?
Some cars are cheaper to insure than others. If you want to reduce your insurance costs, it’s important to think carefully about the car you buy.
As a general rule, the bigger and more powerful your car is, the more expensive it will be.
Comparethemarket.com has compiled a list of the cheapest cars to insure which includes:
- Citroen C1, Vibe and Airplay models (2005-2014)
- Fiat Panda, Active, Active ECO and Dynamic five-door models (2004-2011)
- Ford Ka+, Studio model (2016-2019)
- Hyundai i10 Premium, S, SE and S Air models (2014-2020)
- Kia Rio, CRDi 1 Air models (2011-2017)
Do learner drivers need insurance?
If you learn with a professional driving instructor, you don’t have to worry about driver’s insurance. The instructor will have cover and it will be included in the price of your lessons.
However, if you are taking lessons or practicing with a friend or family member, you will need to arrange insurance. You can request to be added as a named driver on their policy or purchase your own driver insurance.
How much is student driver insurance?
How much learner driver insurance costs will depend on your age, the car you will be driving and the length of coverage. You can buy an annual or short-term policy. RAC, for example, offers coverage from one day to five months. The recommended price for two months of coverage is £116.96.
Is my car insured?
It’s illegal to drive on UK roads without car insurance, so it’s important that you know you’re covered.
If you don’t know if you are insured or are worried that your policy has lapsed, you can check the motor insurance database here.
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Looking for a new car insurance policy or want to see if you can save on what you’re currently paying? Try our car insurance comparison tool
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