Young drivers' insurance guide

Young drivers' car insurance explained

As a young driver getting car insurance at the right price and with the right level of cover can be frustrating. Not all car insurance companies will quote for you, and when they do the prices they offer can be really high. With this in mind, we've put together some information for you to try and help you to get a better car insurance deal.

Why young drivers pay more

There are three main reasons why young drivers have to pay a lot for their car insurance - inexperience, reputation and risk.

Inexperience

Driving experience is a crucial factor - the more time you spend on the road the better your driving is likely to be. Drivers with more experience have a 'proven' track record as long as they stay conviction and claim free, and as a result get a discount on the price of their car insurance (called no claims bonus).

Reputation

Young drivers have a reputation for causing more accidents than any other age group, and statistics from the Association of British Insurers prove this is true. They reveal that the UK's 18 year olds alone cause 50 collisions a day - three times more than drivers in their fifties. Indeed male drivers under the age of 21 are ten times more likely to be involved in a motoring accident than drivers over the age of 30.^*

This means insurance companies pay out more in claims for young drivers, and so charge more for insurance cover.

Risk

Car insurance premiums are based on risk (how likely it is that an insurer will have to pay out on a claim). Insurers will look at your quote details, (for example your claims history, the cost or type of the car you drive, where you live, your driving experience), and then decide what to charge.

Young drivers have more accidents and experience more security issues with their cars, like theft and vandalism as crime rates are higher among young people. They are seen as a greater risk and this is reflected in the high price of car insurance for young drivers.

How young drivers can reduce their car insurance premiums

While higher prices are the norm for younger drivers, there are some things you can do to lower your insurance costs.

Choose a small car
Get a car with a small engine, for example a 1.1 litre rather than a 1.6 litre, which is in a low insurance group. You'll also pay less road tax if your car has a small engine capacity.
Avoid modifications
Modifications (upgrades to styling, audio or performance) may look good, but for the younger driver they mean a big increase in the price of car insurance. Alloy wheels, body kits and performance upgrades make vehicles more attractive to car thieves. Modified cars also tend to be more expensive to fix than ordinary cars.
Limit your mileage
If you only drive at set times of the year (perhaps during term time) then let your insurance company know. To lower the risk of having an accident, avoid driving in rush hour and limit your annual mileage.
Agree a curfew
Some insurance companies may reduce your premium if you agree to limit your driving to certain hours of the day.
Get a Pass Plus certificate
A training scheme for new drivers, it will typically cost you around £100 but if taken immediately after you pass your test it can cut premiums by 35%. Some local authorities offer assistance with the cost - in some cases this can be up to 50%.
Improve security
Consider improving your vehicle's security. Fit an alarm or immobiliser, and if you have alloy wheels, invest in locking wheel nuts.
Park with care
If you can, park your car in a garage overnight. Parking off the road can lower the chance of your car being vandalised or stolen.
Increase your voluntary excess
Choosing a higher voluntary excess when you take out your policy will reduce the price of your insurance. Remember though, if you make a claim you may have to pay that excess before the garage will give you your car back.

Other ways to cut costs

The easiest way to reduce your car insurance costs is to improve your reputation and driving record by staying conviction free, avoiding speeding and building up a no claims discount.

Other things you can do are:

pay for your insurance when you take out the policy rather than by monthly instalments, to avoid interest charges
if you have a car that's not worth much, look at third party fire and theft rather than comprehensive cover (the car may be only be worth a bit more than the excess on your policy)
make sure you're not paying for policy benefits you don't really need, for example legal or courtesy car cover may not be essential to you

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