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.
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.
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.
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.
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%.
Consider improving your vehicle's security. Fit an alarm or immobiliser, and if you have alloy wheels, invest in
locking wheel nuts.
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
- compare as many quotes as possible and use our 5 star rating system to find a policy that gives you the cover you need
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