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Young driver insurance

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You’ve passed your test, got your licence, and you’re raring to get out there on the open road.

But first - insurance!

While car insurance for young drivers can be expensive, there are plenty of ways for you to keep costs down.

What is young drivers’ car insurance?

Car insurance for young drivers is a specific type of policy created for those aged 17-24 who are just getting on to the road. Traditionally, car insurance for young people can be pricey, but some insurance companies try to keep costs down by providing tailored policies.

Young driver car insurance

How much does car insurance cost for young drivers?

The average cost of comprehensive car insurance for drivers aged 17-24 is £905. It's £879 for third party only cover (TPO).[1].

Car insurance for young drivers can vary depending on how old you are, what type of car you drive, where you keep it at night, and where you live.

You may think that a policy with a lower level of cover, like third party only car insurance, would be cheaper than a more comprehensive option, but that isn’t the case. This type of cover is usually much more expensive.

It’s always worth shopping around as a young driver and considering different options, like telematics insurance too.

Why is car insurance more expensive for young drivers?

Insurance providers base your premiums on the risk they believe you pose while on the road.

Young drivers are considered less experienced than older drivers, pushing premiums up.

The amount you’ll be quoted for young drivers’ car insurance is also based on statistical data, which often shows that young drivers get into more accidents than more experienced drivers.

The road safety charity, Brake, states that one in five drivers crash within a year of passing their test, and young drivers are four times more likely to be involved in a fatal crash if they have passengers of a similar age in the vehicle, compared to driving alone. Also, Government statistics show that 30% of casualties in road traffic accidents were aged 17-29.[2]

You could be a very careful driver, but you’ll still find that premiums are expensive, purely based on your age and level of experience.

What level of car insurance can young drivers get?

Young drivers can get the same levels of car insurance as other drivers. They are:

  • Third party only (TPO) - This is the most basic level of car insurance, and covers you for injuring someone else, as well as causing damage to other people’s vehicles or property
  • Third party, fire, and theft (TPFT) – Provides the same cover as TPO, plus fire and theft of your car
  • Comprehensive cover - Will cover you for everything we’ve already mentioned, as well as repairs to your own car and your own medical expenses if you’re injured

There’s usually the option to get black box car insurance too, which can make your car insurance premiums cheaper if you’re a consistently safe driver.

How can young drivers get cheaper car insurance?

We’ve got a few tips to help you get a better deal when it comes to your car insurance.

  1. Choose a small car

    The smaller your car, the smaller your engine, which means you’ll automatically fall into a cheaper insurance group

  2. Reduce the amount you drive

    It might be tempting to drive your car everywhere once you’ve passed your test, but keeping your mileage down can help you get a cheaper deal

  3. Pay your premiums annually

    It’s almost always cheaper to pay your insurance in one go, then it is to pay monthly premiums. If you can afford to choose this option, it’s worth doing

  4. Build your no-claims bonus by driving carefully

    This one can take time, but if you can avoid making any insurance claims, you’ll build up your no-claims bonus which can help you to save in the future

  5. Tighten your security

    Insurers like to know that you’re doing everything you can to keep your car safe, so adding an alarm or tracker could see costs come down

  6. Pay a higher excess

    Your excess is the amount you’ll personally pay towards a claim, if you need to make one. The higher the excess you can pay, the lower your premiums will be, but don’t leave yourself out of pocket

  7. Don’t get modifications

    Looking to make your car go a little faster, or look a little flashier? Bear in mind that your premiums could go up if you make modifications

  8. Add a named driver

    You could add your parents or someone you trust as a named driver to your policy to bring the price down

  9. Take care with your job title

    Your job title can make a difference to the amount you’ll pay in insurance premiums, so try different ways of describing what you do, without being fraudulent

  10. Shop around

    As always, never go with the first offer you see. You could save more by shopping around and comparing quotes

What type of car insurance can help young drivers save money?

Insurance providers have specific types of policies for young drivers, which can help you save money.

Pay-per-mile or pay-per-hour

A pay-as-you-go car insurance policy can help you to save if you don’t drive far.

They work by charging you a flat rate while your car is parked up, and another rate while you’re driving. Your driving data will be tracked by the insurer using a telematics device or smartphone app, depending on the policy.

Both pay-per-mile and pay-per-hour policies can work out cheaper than standard insurance if you don’t drive a lot. However, you’ll need to weigh up whether paying by the mile or hour will be best for you.

If you spend a lot of time zipping up the motorway, a pay-per-hour policy could be better for you, whereas if you’re only driving in your local area, pay-per-mile could be the right fit.

Telematics

Telematics - or black box insurance - allows insurance providers to track how you’re driving, and whether you’re taking risks on the road, such as speeding.

You’ll be given a score for your driving skills, and the insurance company will bear this in mind when giving you a price for your premiums when it’s up for renewal.

Some black box insurance policies require you to keep within a certain speed limit, or drive within certain hours, which will be laid out in the policy details when you purchase your insurance. However, using a black box could help you save on your car insurance.

Short term

Short-term car insurance will only cover you for a set amount of time.

If you’re studying at uni and want to drive while you’re back at home, short-term cover could help you to keep the cost of your insurance down.

You won’t be able to drive outside of the period you’ve specified though, as you won’t be covered.

Named driver

Adding your parent or guardian to your policy could help bring costs down, as insurance providers will trust a more experienced driver.

You’ll need to be 100% honest about who is the primary driver of the car though, because your policy could be invalid if you’re found to be fronting. This is when an experienced driver is listed as the primary driver of the vehicle and a younger person is named as an additional driver on the policy (rather than vice versa) to lower premiums, but the young driver actually uses the car more.

What are the cheapest cars to insure for young drivers?

It’s no surprise that the cheapest cars to insure are small hatchbacks, with small engines.

A small engine means your car won’t have the power of a larger car, which puts it in the cheaper car insurance groups.

Find out more about the cheapest cars for young drivers.

Frequently asked questions

Yes - you’re required by law to have car insurance.

You’ll need third party cover as a minimum, but this can often be more expensive than comprehensive cover.

Yes, unless you’ve legally registered it as ‘off the road’ with a Statutory Off Road Notification (SORN), and keep it in your garage or driveway.

It’s unlikely, but your policy will tell you whether you’re insured to drive other cars or not.

Most providers don’t offer this as a standard feature anymore. You could add yourself onto someone else’s policy if you’re driving their car regularly instead.

It all depends on your provider, but here are some extras you could add on to your policy. Bear in mind that they’ll each cost a fee to include:

  • Breakdown cover – Receive assistance if your car breaks down
  • Courtesy car – Temporarily replaces your car if it needs to go into the garage for repairs
  • Legal expenses - If somebody makes a claim against you
  • Lost or stolen keys – You can get a new key if yours go missing or are stolen
  • Misfuelling cover – Can cover the cost of flushing out the wrong fuel and providing you with enough fuel to get to the nearest petrol station
  • No-claims discount protection - Protects your no-claims bonus if you have to make a claim
  • Personal injury cover - Covers medical expenses if you’re involved in an accident
  • Windscreen repair and replacement - Get your windscreen fixed if it’s cracked or chipped
  • Driving abroad – Cover for your car for when you take it abroad
  • Multi-car cover – Insure more than one car under the same policy. They need to be registered to the same household and usually you’ll get a discount for adding more cars to the policy

If you’ve given inaccurate information accidentally, such as your home address, you should inform them as soon as possible to update your details.

However, if you try to make a claim on your insurance, and you’ve deliberately withheld information to reduce the cost of your premiums, you could find yourself in hot water.

Your policy will be invalid, leaving you unprotected, and you may have to declare your non-disclosure to your next insurance provider. Some providers may refuse to cover you, which will reduce your options when it comes to finding a new deal.

It’s never worth lying when you’re applying for car insurance as it could backfire and see you shelling out even more money.

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[1]Average price paid for annual car insurance polices where the main driver is 17-24 years old purchased in November 2022.

[2]GOV.uk. Reported road casualties Great Britain, annual report: 2021.