Car Insurance for Young Drivers: What to Compare

Why can insurance cost more for a young driver?

Insurers consider how likely a claim may be and how much it could cost. Age and driving experience form part of that assessment, but they are not the only factors.

The insurer will normally consider the car, postcode, annual mileage, occupation, vehicle use and where the car is kept. Previous claims, driving convictions and other people named on the policy can also affect the quotation.

A newly qualified driver has little personal driving history for the insurer to examine. This can result in a higher price even if the driver is careful. Over time, claim-free driving may help, although insurers use different no-claims discount scales and the premium will not necessarily fall every year.

Two young people of the same age can receive very different quotations. One might drive a small standard car occasionally, while the other covers a high annual mileage in a more powerful vehicle. The details need to be considered together.

Choosing a first car

The car can make a substantial difference to the quotation. Insurers consider its value, performance, repair costs, security, availability of replacement parts and claims history for that model.

Before buying a car, obtain insurance quotations using its exact registration number or full model details. Cars that look almost identical can have different engines, equipment and insurance groups.

A smaller engine or lower insurance group may help, but neither guarantees a particular price. Some modest-looking cars attract higher premiums because of their repair costs, theft record or the claims associated with that model.

Modifications must be disclosed when the insurer asks about them. These can include changes to the engine, suspension, wheels, bodywork, exhaust, lighting or interior. Even a change made by a previous owner may need to be declared.

Factory-fitted equipment and optional manufacturer packages can be treated differently from later alterations. If there is any doubt, give the insurer the details before buying the policy.

Are black box policies worth considering?

A telematics or black box policy records information about how the car is driven. Depending on the product, this may include speed, acceleration, braking, cornering, mileage, journey times and location.

Some policies use a device fitted to the car. Others work through an app or a small plug-in unit. The information may influence the current premium, renewal terms or other policy conditions.

A black box does not guarantee cheaper insurance. Read the terms carefully and check:

Which driving information is collected
Whether there are mileage limits
Whether driving at certain times is restricted
How driving scores are calculated
What happens if the phone or device stops working
Whether poor scores can increase the price
Whether the insurer can cancel the policy
What happens to the data when the policy ends

A telematics policy may suit someone comfortable with its conditions. A conventional policy may be more appropriate for a driver whose work, study or family commitments involve frequent late-night journeys or unpredictable mileage.

Adding an experienced named driver

A parent, grandparent, partner or other experienced motorist can be added as a named driver if they will genuinely use the car. This may alter the quotation, but it can increase it as well as reduce it.

The young person must be recorded as the main driver if they are the person who uses the car most. Describing a parent as the main driver simply to obtain a lower premium is known as fronting. It can result in the insurer investigating the policy and applying the remedies available to it.

Be clear about who owns the car, who is its registered keeper and where it is normally kept overnight. These people can sometimes be different, but the insurer needs accurate information about the arrangement.

A young driver using a family car occasionally may instead be added to the owner’s policy. Before doing this, ask how a claim involving the young driver could affect the owner’s no-claims discount and future premium.

Comparing price and cover

Comprehensive cover is not always more expensive than third-party or third-party, fire and theft insurance. Obtain quotations for the levels of cover that are suitable rather than assuming the policy with the least protection will cost less.

Check the compulsory and voluntary excess. Young drivers can be subject to an additional age-related excess. Add all the applicable amounts together so it is clear how much would have to be paid towards a claim.

Paying monthly is commonly a credit arrangement. Compare the annual premium with the total payable by instalments, including interest and charges. The direct debit amount alone does not show the full cost.

Optional extras can also change the price. Legal expenses insurance, breakdown cover, key protection and an enhanced courtesy car should be considered separately. Check whether similar protection is already available elsewhere.

Training such as Pass Plus may lead to a discount with some insurers, but not all recognise it. Ask for quotations before paying for a course mainly in the hope of reducing the premium.

After passing the driving test

Learner driver insurance may stop when the practical test is passed. The new driver must have cover that permits unsupervised driving before using the car alone. Contact the insurer rather than assuming an existing learner policy continues automatically.

New drivers should also be aware of the penalty-point rules. A licence can be revoked if the driver receives six or more points within two years of passing their first driving test. The official GOV.UK guidance for new drivers explains how this works.

Further useful information is available from:

This page provides general information, not a personal insurance recommendation. Insurers have different prices, acceptance rules and policy conditions. Answer every question accurately and read the policy wording and Insurance Product Information Document before buying.