New and young driver insurance is known for being expensive. Find out why, and what you can do to lessen the blow in this guide.
Why does age affect price?
In a word, risk. Statistics show that young people are more likely to be involved in an accident than older, more experienced drivers. In fact, an RAC report shows that 20% of young drivers have been in an accident. That’s not to say you’re a risky driver. You could be the most careful, reliable and responsible young driver out there. It’s just that the stats are stacked against you. And, as a result, car insurance for young drivers is always going to be more expensive.
The same goes for new drivers. As well as being judged more likely to be in an accident, new drivers also suffer from not having had the chance to build up a no claims discount.
Is there anything I can do to reduce the cost?
Absolutely. Affordable car insurance for young drivers does exist. So if you’re struggling with an expensive quote here are a few things to try.
1. Choose a car in a low insurance group
Insurers put cars into insurance groups from 1 to 50. Broadly speaking, cars in insurance group 1 are the cheapest to insure. Cars in group 50 are the most expensive. To find out more about the way the groups work and the most affordable cars for young drivers, take a look at our guide to car insurance groups.
2. Build a no claims discount
It won’t help you right now, but if you drive safely, build a no claims bonus and keep your licence clean, you could get a discount when you renew. Some companies (including Sainsbury’s Bank) let you build a no claims discount as a named driver and then transfer the discount when you take out your own policy with them.
3. Add a low-risk second driver to your policy
An older, more experienced driver would be ideal – asking your parents is a good place to start.
But be careful of ‘fronting’. This is when an experienced driver takes out car insurance in their name, then adds a less experienced driver, who’ll be using the car more, as just a named driver. For example, some parents do this for their children to bring the cost down. But it’s actually illegal and you risk any claims you make being rejected.
4. Increase your excess
If you agree to pay a higher voluntary excess, your monthly premiums will be cheaper. But bear in mind that you’ll have to pay more if you ever need to make a claim and, as a young driver, your compulsory excess could be quite high to begin with. Take a look at our guide to car insurance excess to find out more.
5. Add a black box
These use a satellite tracker to check how you’re driving by monitoring things like your speed, acceleration and braking. The steadier you go, the lower your insurance will cost. This isn’t something we offer, but there are some insurers that do.
6. Pay in one lump sum
Most insurers add on interest when you pay your car insurance in monthly instalments. If you can afford to pay in one go, you’ll avoid it.
7. Soup-up your security
If you make your car more secure, insurers will see it as less of a risk. Adding an alarm and immobiliser system, parking it in a garage instead of on the street, and getting your windows etched can all help to brig your premiums down
So what do I need to remember?
We hope this guide has made it easier to understand car insurance for young and new drivers, but what are the main points to remember?
- It costs more – there’s no getting away from it, age and experience will affect the price of your insurance
- That doesn’t mean there’s nothing you can do – there are lots of options for bringing down the price of your insurance
- Ask questions - if there’s anything you’re not sure about, speak to your insurer.