Are you a young or new driver looking for cheap insurance? With average car insurance quotes for young drivers hitting four figures, notoriously high premiums and risk-averse insurers are becoming a real headache for drivers aged 17-22. Getting on the road can be a daunting task. But there’s hope for the new drivers. With hacks, tweaks, and options available, we take a look at the best ways to get cheap car insurance for young drivers.
Why car insurance for young drivers is so expensive …
As a young driver it can be hard to find cheap cover, but insurance companies have their reasons. From stats to bare facts, young drivers are the riskiest road users. Insurers calculate that this makes those new to the roads more likely to be involved in accident, and so their car insurance premium costs soar to cover the risk taken on by the insurance companies.
Let’s look at the stats. Research carried out by AA showed that by the age of 23, 40% of young British drivers have been involved in a road crash. Another survey, this time from the RAC Foundation, showed that young drivers were involved in 20% of all recorded collisions, yet hold just 7% of all licenses in Great Britain.
Don’t feel singled out though. It’s not just young drivers that are penalised for their lack of time behind the wheel. New drivers hitting the roads for the first time are also paying sky-high car insurance bills, no matter their age.
But it’s not just the drivers insurance companies are looking at. The car plays a big factor too. If you’re commuting to work in a high-end car, you’ll be adding £100s to your premium. We’ve broken down the crucial details insurers consider when calculating premiums, so you can make an informed choice when buying your first car.
The value of the car
This one speaks for itself. The higher the cost of the car, the more it would cost to replace if it was stolen or involved in a serious accident. Thus, a higher price on your premium.
You may only be involved in a small prang, but if repair costs for your particular make or model of car are high – you’ll end up with a premium to match it.
The car’s security
Insurers are looking for key, built in security features, which will hinder your car from being stolen. We’re talking alarms, immobilisers, or high security locks fitted by the manufacturer.
High performance stats may rack you up some impressive bragging rights, but you’ll also be forking out some serious money in insurance bills. Statistically speaking, speedy cars and young drivers are more likely to be involved in accidents. Young drivers should ditch the 0-60 stats and go for a steady and reliable model to get cheaper deals on their car insurance.
The price of the parts
Insurers look at the replacement cost of the 23 most common parts when considering premium prices. For cheap car insurance, young drivers should keep things basic, mainstream and economical for the best deals. There’ll be time enough to opt for that classic car you’ve always dreamed of.
Companies that specifically offer car insurance for young drivers…
As a new driver looking for cheap car insurance, the marketplace can be a baffling mix of big brands, big prices and complex terms. So it’s always worthwhile hitting up our comparison service for a quick fix.
There are companies that tailor their car insurance packages for young drivers. Now, this can be hit and miss. They are not always the cheapest, but if you’ve got the time, it’s worth having a look around.
Drive down young driver insurance costs with these simple tips
Just passed your test? Congrats! But before you rush out and buy your first car, it’s worth putting in some solid research time. Checking out which are the cheapest cars to insure can save you hundreds on your annual insurance premium. As a starting guide, the Toyota Yaris, Kia Rio, and the Renault Twingo were the some of the cheapest options for young drivers in 2017.
Another way to get a good deal on young driver’s insurance is to get an early quote. Whether you’re planning ahead for a renewal deal or buying a new car, getting a quote up to 60 days in advance means you can lock in a cheap price before any price hikes.
Black Box Insurance
This is one piece of tech you can add to your car that shouldn’t ramp up your young driver’s premium – providing you keep things safe on the roads! With telematics, or black box insurance, you could save £100s on your policy. Insurers equip your car with a black box, which then sends details of your driving back to the insurance company. Black boxes generally monitors metrics such as mileage, the times you drive, speed, acceleration and braking. If you’re certain you’re a safe and steady driver, black box insurance is a winner for careful drivers. On the other side if you are completely against having a black box then visit our insurance without a black box page
Keep it locked
It may seem obvious, but keeping your car in a safe place is one of the simplest ways to keep the cost of car insurance for young drivers down. Any additional security measures you can take – such as parking your car on a driveway or locking your car away in a garage will all lower premiums.
Steer clear of modifications
Tempting as it may be to have the jazziest car in the neighbourhood, insurance companies won’t be impressed by your modifications. Any add-ons are going to ramp up your premiums further. The only exception to this rule? Any additional security measures you take will always be looked on favourably. So pass up the over-sized spoilers and invest in a good steering wheel lock instead. Your bank balance will thank you!
Shell out and save
If you can, paying for your insurance up front can bag you a cheap deal on your premium. Monthly direct debits do spread the cost through the year, and make things more manageable, but you’re essentially taking a loan, so you will have to pay more – often up to 10% more. So if you’re really counting the pounds, this is an easy way to shave a sizeable sum from the cost. If your parents, perhaps, are able to loan you the money upfront, set up a direct debit and pay them back month by month, so you’re getting the cheaper price, spread evenly throughout the year. Best of both worlds!
Be smart on your policy
Let’s be clear. Lying to any insurance company is a big no-no. Anything other than the truth is going to invalidate your policy, and could even see you becoming the subject of a criminal prosecution. With all that said, you can still use some details to your advantage – so long as the details are still true. Job titles are a prime example. A simple change from a title such as Office Administrator to Customer Advisor can save you money. If you’re using price comparison sites or online companies, try different versions of your job title to see which gets the best results. You’ll be surprised at how much this simple trick can save you.
Improve your driving skills
A practical step towards cheap car insurance for young drivers could include taking an advanced driving course. Be sure to check with insurers before forking out for one of these courses though. Not all insurers will lower the premium on young drivers insurance – even if you’ve passed the course with flying colours. Pass Plus used to be a popular option, but fewer companies are now offering lower premiums in return. Look instead courses such as the Advanced Driver Course by IAM RoadSmart. Coming in at around £150, this is a great next step for newly qualified drivers.
Add another driver
Adding an older and more experienced driver to your policy can make a huge difference to insurance costs for young drivers. There are rules to follow, though. Make sure you’re still the named driver and be sure to add someone who will actually drive the car. Better still, add someone with a great driving record under their belt. We’re talking mums, dads and grandparents here. The cheap car insurance for young drivers far outweighs having to let your dad take your ride for a spin now and then.
Max out your excess
If you’re keen to really get the cheapest insurance, try maxing out your excess. Be warned though, this does come with a catch. In the event of a claim, this is the amount you’ll have to pay out as part of the claim. So only use this one if you’re really keen to push down the cost.
How adding named drivers can save you £100s on your policy
Insurance companies love drivers with plenty of experience behind the wheel. Add one or two to your young driver’s insurance policy and you could be looking at saving £100s on your premium. But what’s the deal here? We’ve broken down just what it is insurers are looking for and how you can benefit.
Do add family members.
Anyone who lives with you, or close by, with access to the car is a winner. Remember though, any named driver must occasionally be driving the car.
Choose older drivers.
The biggest savings can be made by adding experienced and older named drivers to your policy. Insurers assume that if the car is being driven by a more experienced driver – for at least part of the time, there’s less chance of the car being involved in an accident.
Be a named driver.
As tempting as it may be to have your own car, if you only drive occasionally, consider just being a named driver on one of your parent’s cars. Some companies will let you notch up a named driver discount, which you can transfer when you get your own car. Be wary of the rules though. If you’re the one who drives the car most often, or you’re the owner, but you claim you’re a named driver, it’s illegal.
Don’t add someone with a rocky road history.
We’re talking insurance claims, accidents and penalty points here. Always opt for someone with a clean license and a shiny no claims bonus – for maximum benefits.
Don’t add another young driver.
Goes without saying, but you’re looking for someone with at least a few years driving experience – preferably 5 or more. So even if your partner really really wants to be on your policy, think twice before upping your premium just so they can be designated driver now and then.
Don’t make it up.
If your named driver(s) live in Australia, are fictional, or will never driver the car – they don’t make the grade.
Don’t switch places.
Naming your Dad is the main driver on your car, when he isn’t, is called ‘fronting’. Yes you’re quote will be cheaper, but fronting is also illegal.
Don’t make assumptions.
You may think adding your mum or gran will be the best way to reduce your annual premium. But check out other family members too. It could be that your brother or dad will bring the premium down further – always check.
What about third party only insurance?
Previously this was the young driver’s go-to solution for cheap car insurance. Risky, but cheap, third party just protects you from claims another driver may make in the event of an accident. You won’t receive any money for your car if you’re involved an accident – or if your car gets stolen or damaged.
So not a great policy if you live in an area where vandalism or car crime is statistically high. That said, insurers now see third party only insurers as a high risk group. Consequently premiums in some cases can be higher than if you took out fully comprehensive insurance. The logic being, if you care that little about your own vehicle, are you actually a riskier investment for the insurer?
This one all comes down to the best fit for you. If you’re driving an older, low value car, safely in a safe area – then third party only insurance will get you on the road. However, if the deck looks stacked against you on this one, fully comprehensive cover may be worth the extra money in the long run.