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Car insurance tends to be more expensive for new drivers because they are more likely to be involved in accidents than drivers over the age of 25. And they are more likely to cause injuries to third-parties, making claims more expensive.

Figures from the Department for Transport in 2018 show that around one in five new drivers are involved in a crash during their first year on the road. 

Other reasons why car insurance is so expensive for new and young drivers include: 

• Drivers aged 17 to 24 are three times more likely than those from other age groups to injure somebody in an accident

• Young drivers tend to travel with other young people in the car, and Government figures show that just over half of accidents involving drivers aged 17-19 resulted in injuries. This compares with one in five accidents where drivers were aged 60-69

• Injured passengers are classed as third parties meaning insurers must compensate for their injuries. Life-changing injuries cost insurers more the younger the injured person is because the victim must be compensated for the rest of their life

The cost of car insurance for 21-year-olds fell 7% to £118 per month on average during the first few months 2020, partly because fewer car journeys were being made as a result of the coronavirus pandemic. But it is still not cheap:

• Drivers aged 21 pay £1,525 on average per year

• 18-year-old drivers pay the most, handing over an average of £2,134 per year for car insurance

Insurance is dependent on a multitude of factors such as age, area and driving history.

Car insurance for young drivers will nearly always be more expensive, but there are things you can do to minimise the cost of your premiums:

• Choice of car: Each car is assigned an insurance group number from one to 50, with one being the cheapest to insure and 50 the most expensive. Driving a car in a low insurance group is the easiest way to reduce your premiums

• Adding a driver: You can add a second, low-risk driver to lower the costs of your car insurance. A lot of younger drivers include their parents. Another motorist cannot pretend to be the main driver – this is illegal and known as ‘fronting’

• Being a named driver: You can be a named driver on another person’s insurance policy and build up a no-claims bonus

The best car insurance may not be the cheapest. For example you may be able to lower your premium by having a higher excess but you may struggle to pay out for repairs if your car is involved in an accident. New driver car insurance costs tend to be more expensive, so you may be better off paying a higher premium and taking long term measures - such as advanced driving courses or having a black box fitted, to reduce your costs over the coming years.

New drivers who are older tend to pay slightly less insurance, as part of the car insurance premium you pay will be based on your age. But your experience as a driver also determines how much you pay so an older driver with less driving experience will pay more than an older driver with more experience.

There are occasions when multi-car insurance policies offer a really good deal. They are worth considering if:

Multicar insurance might also be suitable if:

• You own more than one car

• You’re a family with more than one driver

• You’re a couple with more than one vehicle

You don’t need to own a car to require car insurance. If you are only planning on borrowing a car, or even if you have one tucked away on your drive with the required Statutory Off Road Notification, temporary car insurance might be the ideal solution.

Black box or telematics insurance involves fitting a device to your car. This GPS-enabled device allows the car insurer to monitor driving behaviour. For example, acceleration, braking, cornering, miles covered and also what time of day you are driving.

The price of your insurance then goes down if you can prove you are a good, safe driver. However bad driving can result in your premiums going up and your insurance could even be cancelled.

• Add a more experienced named driver: If you are a new driver you can cut car insurance costs by adding a named driver who is older and more experienced to the policy. But don’t pretend they are the name driver if you are. That is called fronting and is a crime.

• Change the type of car you drive: Another factor is the type of car you drive, with the car’s speed, security features, and value all playing a big part – read our guide to the cheapest cars to insure to find out which cars attract the cheapest insurance premiums.

• Increase your voluntary excess: Opting for a bigger voluntary excess may result in a cheaper monthly premium. But make sure you can afford any voluntary excess if you need to claim. This excess is in addition to the compulsory excess set by your insurer. This is what you will have to pay if you ever have to claim. However, you can also insure your excess, so that if your claim exceeded your excess it too would be paid. 

• Pay upfront: Pay for your insurance in one go if you can. Spreading the cost of your car insurance over 12 payments, monthly, may seem cheaper but remember you will be paying interest on top of the amount you pay towards your car insurance premium.    

• Drive less: Limiting your miles makes you less of an insurance risk. Simply because you are reducing your risk of having an accident. When you take out your car insurance policy the insurer always asks for an estimate of your maximum annual mileage. You need to try and you’re your mileage low, although you need to be realistic as to how much you will drive. 

• Install extra security: Having an alarm or immobiliser is considered a theft deterrent and by deterring car thieves you can reduce your car insurance. Not all insurers will offer this, so check first.

• Do an advanced driving course: Some insurers will offer a discount for drivers who have completed an advanced driving course. There are several recognised providers such as the Institute of Advanced Motorists and the Royal Society for the Prevention of Accidents.

• Shop around: Shopping around, aim for a month before your car insurance renewal comes up could also save you money. It may be your current car insurance is the cheapest available but because pricing changes it’s always best to stay vigilant.

• Consider a multi car insurance policy: If your parents’ driveway is heaving with cars it may make more sense to try and include all those cars and yours on one policy. Some insurers allow you to take out a single multicar policy including for children at university. Check to see if you can reduce your insurance costs with a multi-car insurance policy.

• Don’t own a car: This might sound like a drastic alternative but if you don’t always need access to a car, maybe you can borrow a friend’s or family member’s car. Many insurers offer short term and temporary car insurance which, in some cases can be taken out for just a day. Compare quotes for short-term or temporary car insurance.