Car insurance for young drivers can be really expensive; premiums are often thousands of pounds a year for anyone under 25.
Read on to find out why and to see our top tips for finding the best (and cheapest) deals.
Why is car insurance for young drivers so expensive?
Car insurance premiums are calculated depending on the likelihood of the driver being involved in an accident and the cost of the claim if that happened.
Car insurance is a big expense for young drivers. Image by tz1_1zt via Flickr
Unfortunately it’s a fact that young drivers are statistically more likely to be involved in an accident than someone over the age of 25, which means insurance premiums are higher to cover the increased risk.
As well as the being more likely to have an accident, young drivers pay more for their car insurance because they haven’t had the chance to build up a no claims bonus.
12 tips for finding the cheapest car insurance for young drivers
- Pick a cheap car to insure. Fast, expensive cars cost more to insure. When you buy your first car, consider buying a smaller model to help bring down insurance costs. See ten of the cheapest cars to insure.
- Scrap plans for modifications. Modifications might be tempting for a young driver looking to make a car that’s cheap to insure a bit more exciting to look at, but they’re a no-no if you want to keep your car insurance premium low.
- Think about an extra driving qualification. Consider getting an additional driving qualification, like Pass Plus, which may get you a discount on your insurance. Pass Plus costs around £200 and some councils offer discounts. should make you a safer driver, so it’s worth doing for that alone, but bear in mind that it doesn’t automatically mean cheaper insurance, because not all insurers recognise the scheme.
- Drive safely. It sounds obvious we know, but it’s important. Even those bad driving habits that you think aren’t that serious can come back to bite you. For example a claim due to clumsy parking, being caught speeding or using your mobile behind the wheel means your car insurance premiums will go up. Plus, if you don’t make any claims you can build up your no claims bonus which will earn you a discount on future car insurance premiums.
- Think about the level of cover you need…Comprehensive cover is typically the most expensive type of car insurance; it will cover both your car and other vehicles if you have an accident. Third party, fire and theft insurance will cover the costs incurred by other drivers if you have an accident or the theft of your own car, or damage caused by fire. Third party insurance is the most basic level of cover; it protects you from claims against you if you are involved in an accident and injure someone, and it will cover the cost of repairing or replacing the other person’s car but it will not cover damage to your car.
- …but don’t assume third party is cheapest. Third party and third party fire and theft are usually cheaper than comprehensive car insurance, but not always. The kind of customer who buys third party cover is sometimes seen as more of a risk by insurers, so as strange as it may seem, comprehensive could be cheaper.
- Be a named driver. Young drivers who drive their parents’ car could go on their parents’ policy as a “named driver”, as long as they aren’t going to be the person who drives the car the most. (Lying about who drives the car most is called fronting and can land you in trouble.) Remember that most named drivers will not be able to build up their own no claims bonus.
- Add a second driver. Adding a second driver to a young driver’s policy can help bring down the cost, if the second driver in question is older and has a good driving record.
- Minimise risk. Fit an alarm and an immobiliser, park in a garage or driveway if possible, and cut down your mileage. This will all help trim some £s off your premium.
- Pay per year, not per month. It’s usually cheaper to pay for the whole year in advance, because if you pay on a monthly basis, the insurer may add interest charges on to the balance.
- Increase your excess. Opting for a higher excess will reduce your premium. Make sure that you’ll actually be able to afford to pay the excess if you do have an accident.
- Shop around. Compare quotes from different providers. The difference between the cheapest and most expensive quotes can be hundreds of pounds. Some insurers specialise in younger drivers, while others have special products designed for drivers under 25. Use a price comparison site to speed up the process and get a good range of quotes from across the market.
*60% of car insurance customers could save up to £200 (Consumer Intelligence data, December 2011)
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