Insurance tailored for young drivers, aged 17-24, is commonly referred to as young driver insurance. While it’s not a distinct policy, insurance providers often categorize young drivers as higher risks, leading to higher premiums. Despite the inherent cost challenges, there are strategies to explore for securing more affordable coverage.
Why is young driver insurance costly?
The average premium for young drivers stands at £2,041[1]. This elevated cost is primarily due to statistical data indicating that young drivers are more prone to accidents, necessitating insurance claims.
[1] According to Compare the Market data in December 2023, 51% of young drivers aged 17-24 could obtain a car insurance quote of up to £2040.44.
Tips for obtaining cheaper car insurance as a young driver:
- Consider your car’s type and value: The make and value of your vehicle impact insurance costs. Owning a new, high-powered, or luxury car may result in higher premiums.
- Add an experienced named driver: Including an experienced driver with a clean record can potentially reduce your premium. However, avoid providing false information about the primary driver to prevent ‘fronting,’ a form of fraud that could invalidate your policy.
- Drive responsibly: Maintaining a clean driving record without penalty points or speeding fines can help keep your premiums in check.
- Explore a Pass Plus driving qualification: Completing this qualification may demonstrate that you’re a safer driver, potentially leading to lower premiums.
- Limit your mileage: Reducing the time spent on the road can minimize accident risks and, consequently, lower premiums. Ensure your reported annual mileage is accurate to avoid policy invalidation.
- Pay upfront: If feasible, consider paying your annual insurance in a lump sum. Monthly installments often include interest charges.
- Adjust your excess: Choosing a higher excess amount can reduce your premium, but ensure it remains affordable in case you need to make a claim.
- Shop around: Comparing quotes from different providers can help young drivers find more economical annual premiums. Begin exploring alternatives three weeks before your policy renewal date.
For added convenience, set up automated quotes with us, and we’ll notify you of potential savings before your renewal.
Types of insurance for young drivers:
- Third-party insurance: The basic legal requirement covering damage to others’ vehicles or injuries caused to others in an accident.
- Third-party fire and theft insurance: Includes the above coverage and extends to theft or fire damage to your vehicle.
- Fully comprehensive insurance: Encompasses all the above and provides protection for you as a driver, along with coverage for damage to your car.
Surprisingly, fully comprehensive insurance can sometimes be the most cost-effective option for young drivers. When seeking affordable coverage, it’s advisable to compare the different policy types available.