Car Insurance for Teenagers

Teenagers: how to get your car insurance for less

Car insurance is a significant expense for any motorists, but it is often even more problematic for teenage motorists.

Car insurance for teenagers costs more for the simple reason that they are more likely to make a claim: 1 in 5 drivers are involved in a crash during their first year on the road.

Male teenage car insurance prices are particularly high

Male drivers are a particular risk. If you are a man under the age of 21, you are ten times more likely to have a car accident than a male driver over the age of 35. So it's perhaps no surprise that the price of car insurance for teenagers, particular for male drivers, is so high.

However, a law change in December next year will make it illegal for insurers to offer different premiums to men and women based on their gender. The anti-discrimination legislation is expected to cause a 30% jump in car insurance premiums for female teenagers. 

The impact of high teenage car insurance prices

The high price of car ownership is pushing motorists off the road. More than 1 million people have given up driving over the past 12 months, according to Sainsbury's Finance. And many are tempted to drive without insurance. There are about 1.4m uninsured vehicles on Britain's roads and the cost to the industry is high.

It is illegal to drive without at least third party cover, although some young motorists are apparently ignorant of the law: one in ten 18 to 34-year-old drivers is unaware that car insurance is a legal requirement, according to research by the Motor Insurers' Bureau (MIB).

Continuous Insurance Enforcement (CIE) legislation was also introduced earlier this year which makes it an offence to keep a car without insurance - even if you don't drive it - unless you declare the vehicle off the road with a Statutory Off Road Notification (SORN). Failure to comply can result in a fine of up to £1000, plus seizure and disposal of the car.

The government hopes that the crackdown on uninsured vehicles will help to bring down the price of teenage car insurance. The recent government ban on referral fees, where insurers trade the details of accident victims with lawyers, should also reduce the cost of personal injury claims and ultimately motor premiums. Then there's an investigation into the recent big increases in premiums by The Office of Fair Trading.

Some of these measures could take time to filter through to the consumer, but there are ways to reduce the cost of car insurance in the meantime.

Impact of vehicle choice on car insurance for teenagers

The type of car you drive has a big impact on premiums, so choose your vehicle with care. Insurers divide cars into 50 groups based on a number of factors including the cost of repairs and engine size. The higher the group, the higher the premium. So, you will pay more to insure a Porsche 911 than a Fiat Panda. You can find details of car insurance groups at www.thatcham.org.

Any modifications will also boost your premiums. In other words steer clear of fat tyres and spoilers. A modification is considered to be anything which results in a vehicle deviating from its original manufacturer specification. You can find more information on this with our modified car insurance page.

Get cheaper car insurance for teenager drivers

If you car isn't worth very much, you might want to consider arranging third party insurance or third party fire and theft instead of comprehensive cover. But take care. Some insurers only offer comprehensive insurance. You might also find that you can buy a comprehensive policy for roughly the same price as more limited cover.

Teenage drivers have little experience of the road, which makes insurers nervous. But young motorists can enhance their driving skills by completing the Driving Standards Agency's Pass Plus course, which covers various aspects of motoring, including motorway driving and night driving. There is a fee for the course but it should be offset by a reduction in your premium, of up to 35% in some cases.

If you don't want to take a Pass Plus course, you might be able to add some experience to your policy with a named driver. You would think that it would cost more to insure an additional driver, but if you add an older driver with a clean record, perhaps your mum or dad, then your premium could come down. Always be honest with your insurer. If you put your mum down as the main driver with you as an additional named driver, then you could be guilty of what's known as 'fronting' - and that's an offence.

Many teenagers are turning to technology to lower the price of car insurance. If you agree to fit a telematics device in your car - often dubbed a black box - you can bring premiums down by 30% or more. The black box monitors how many miles you drive, when you drive and how you drive. Careful drivers who cover fewer miles are rewarded with a cheaper premium.

All motor policies include a compulsory excess, which is the amount you pay towards any claim. Check if potential insurers will quote a cheaper price if you agree to a bigger voluntary excess. But make sure the excess is affordable in the event of a claim.

Finally, one of the easiest ways to save money on teenage car insurance is to shop around for cheap quotes using MoneySupermarket's online comparison service.

Check out our car insurance tips for more ways to save or visit our young driver car insurance guide for guides which cover more specific ages.