Does turning 21 affect car insurance prices?
You’ve turned 21 and finally have the key to the door. Reaching this milestone brings a number of advantages – but at the very least you can expect slightly cheaper car insurance.
For example, the average cost of fully comprehensive insurance for a 21-year-old driver is £1,200 – which while still not cheap is more than £200 less than an 18-year old with the same cover (September 2017).
This drop in price is partly driven by the facts used to calculate car insurance premiums: statistics show your likelihood of being involved in an accident reduces at 21. This, in turn, means that you are viewed as a lower risk, and therefore impacts the price that you pay.
But despite this, you are still likely to find yourself paying far more than the national average at 21, which is why it is more important than ever to ensure you get the best possible deal.
Ways to bring down the cost of car insurance for 21 year olds
Car insurance for 21 year olds can sometimes seem out of reach and simply too expensive. Even slightly older drivers may find it difficult to get a reasonably priced quote that they can afford.
However, there are things you can do to keep costs down.
Telematics insurance: One option that a number of young drivers have been looking into is telematics car insurance. A black box is fitted in your car which then monitors the way you drive. It records the number of miles you cover, along with your driving behaviour.
Not only does it encourage better driving, but it means that your premium is based on you as an individual, rather than as part of an age group. And young drivers have saved an average of £202 a year by having a black box installed.
Short term car insurance for 21 year olds: If you are finding it too expensive to insure yourself for a whole year and don’t feel comfortable opting for telematics, you could still insure yourself on your vehicle at key points in the year.
MoneySuperMarket offers a number of temporary and short term car insurance deals and the good thing about this type of policy is that it can be tailored to your needs.
Car insurance groups: All cars belong to a certain car insurance group, which are numbered from 1 to 50. A range of factors determine which group your vehicle will belong to such as performance, the cost of repairs and level of security.
Generally, the higher the number of group your car is in, the more you will pay. Therefore, before you purchase your vehicle you should find out from the manufacturer what group your car falls into – it could affect your choice of make and model. Read our guide on the cheapest cars to insure to see why it might be a good idea to change to a smaller and safer car.
Finding cheaper car insurance for 21 year olds
For young drivers, car insurance just isn’t going to be cheap. However, you could increase your chances of finding the cheapest car insurance for 21 year olds by utilising the MoneySuperMarket price comparison website. You will be able to compare providers, receive quotes and find the best deal for your needs.
For more information on how to reduce the cost of motor insurance for young drivers, take advantage of our guide to car insurance for young drivers.