Cheap Young Drivers Insurance
Compare car insurance for young drivers
According to data from Brake, the road safety charity, young drivers are at a much higher risk of crashing their cars than older drivers.
In fact, the organisation’s research indicates that 23% of drivers aged 17 to 24 will be involved in a car accident within two years of passing their test.
So even if you happen to be the most safety-conscious, speed-aware driver in your town or city, if you’re a younger driver and you passed your test fairly recently, you are seen as a much higher risk to insurance companies. Unsurprisingly, your car insurance quotes will be higher to reflect that perceived risk.
However, there are a few things you can do to reduce the overall cost of your car insurance. For starters, you could:
- Opt for a slower car with a smaller engine, which will usually mean you fall into a cheaper insurance group (and might also go some way towards demonstrating that you’re not a boy- or girl-racer).
- Consider taking out telematics insurance (also known as black box insurance, which involves installing a tracking device to monitor your driving habits. This type of insurance policy can lower premiums by as much as 20% for some drivers.
- Consider opting for third party or third party, fire and theft insurance, which should be cheaper than fully comprehensive insurance because it provides less cover.
- Consider completing the ‘Pass Plus’ or ‘RoSPA Advanced Drivers and Riders’ test, which can help to demonstrate that you’re a safe driver who obeys the rules of the road and doesn’t take undue risks.
Beyond those steps, though, it’s critical that you compare quotes from a wide range of insurance providers when you’re trying to find cheaper car insurance for young drivers.
That way you’re more likely to find the right insurance policy at a price that won’t break the bank.
A guide to car insurance for new drivers
Insurance for new drivers is essentially the same as ordinary policies; the only real difference is the cost.
You’ll almost always pay significantly more for your insurance when you’ve only recently passed your test than you would if you were an older, more experienced driver.
Levels of Coverage
As with standard car insurance policies, there are three levels of cover to choose from if you’re a younger driver insuring your first car:
Third party: This is the least comprehensive level of cover available, and therefore usually the cheapest too. Third party car insurance will usually cover the cost of damage to a third-party’s vehicle if you’re involved in an accident and you were at fault. However, that’s the only thing this policy will cover – you’ll have to fork out for the cost of repairs to your own vehicle yourself.
Third party, fire, and theft: As the name suggests, third party, fire and theft car insurance will cover damage to a third-party’s vehicle as well as paying out if your own car is stolen or damaged by fire.
Fully-comprehensive cover: The most expensive type of car insurance, but also the most comprehensive, this type of policy will cover the cost of damage to your own car as well as third parties if you’re involved in an accident that was your own fault.
Insurance companies classify each make and model of car as belonging to one of 50 separate insurance groups, based on the vehicle’s price, performance level and engine power.
These groups are based on the perceived level of risk a particular vehicle represents to the underwriter, and as such they can have a significant influence on car insurance premiums.
While other factors obviously play a role, generally speaking the lower your car’s insurance group the lower the premium you’ll pay to insure that particular vehicle.
So, if you’re trying to find cheaper car insurance for young drivers it might be a good idea to buy a vehicle that falls into a lower insurance group.
Black Box Policies
Also called telematics insurance, these insurance policies rely on a device that’s similar to an airplane’s black box, which monitors a person’s driving habits.
The black box device uses satellite technology to record a range of vehicle data, such as mileage, braking and acceleration habits, driving speed and cornering, as well as what times of the day the car is usually driven.
As a general rule, someone who drives responsibly may be able to earn lower premiums with black box insurance, so these policies can be a useful way for young drivers to reduce the cost of their car insurance.
However, it’s important to bear in mind that telematics insurance could negatively affect your premiums if you’re involved in an accident or your mileage is significantly higher than expected.
It’s also worth noting that some telematics policies impose a curfew, meaning you might be restricted to driving during daylight hours. While this can result in lower insurance premiums, it’s important to be sure that this kind of limitation won’t pose a problem before you sign up.
As with most policies, car insurance cover for young drivers can come with a range of optional extras, such as windscreen cover, legal expenses cover or breakdown cover.
Of course, these extras almost always increase the cost and given the fact that price is usually a major concern for younger drivers many may decide to forego these optional extras until they’ve clocked up some driving experience and earned a decent No Claims Bonus.
Reduce the cost of car insurance for a first-time buyer
Passing your test and buying your first car is a huge milestone for most people, but it will inevitably bring significant expenses your way.
It’s fair to say that car insurance for young drivers (those between the ages of 17 and 24) is never likely to be classed as ‘cheap’, but there are a few other things you can do to make your premiums just a little easier to swallow:
- Consider multi-car insurance: If you still live at home with your parents it might be cheaper to add your car to a multi-car policy. This is normally only possible when you share the same address, but there are one or two providers that may allow family members to join even if they live somewhere else.
- Consider agreeing to a higher excess: If you’re willing to agree to a higher excess it will mean you will have to cover more of the cost yourself if you ever have an accident, but it should result in cheaper premiums.
- Try to avoid gaps in your insurance, if possible: Your No Claims Bonus (also known as a No Claims Discount) may be reset to zero if you have gaps in your insurance – if you move overseas for a few years, for instance.
- Find out if you can use your overseas No Claims Bonus if you’ve lived overseas: If you have recently returned from living abroad and you built up a No Claims Discount while you were overseas it might be possible to transfer this to the UK in order to reduce the cost of your insurance here.