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How to Get Cheaper Car Insurance for New Drivers

Saarrah Mussa
Written by  Saarrah Mussa
5 min read
Updated: 08 Feb 2024

When you’re a new driver it can be daunting to start your first insurance quote and you may be surprised by how expensive it is. However, there are some things you can do to decrease that number.

How to Get Cheaper Car Insurance for New Drivers   

New drivers often face the harsh reality of car insurance rates. This can feel like a major roadblock but there are some things you can do to help lower your premiums.

student car insurance

Why is insurance for a new driver so expensive? 

While insurance is more expensive right now than it has ever been in the past, it is especially expensive for new drivers. Whether you’ve just passed your test at 17 or you’re older and are still facing expensive insurance as a new driver. This is because, as a new driver, (according to statistics) you have less experience on the road and are therefore more likely to make a claim, you are seen as a high-risk driver.  

How does age affect the cost of car insurance?  

Age also plays a part in the price of your premiums. According to data collected from the Association of British Insurers (ABI), if you are a new driver aged 18-20 you are likely to pay the highest average premiums as the average claim made by 18-20-year-olds in 2022 is 3,667, higher than older age groups.   

Number of years with a driving licence

Average annual premiums

0

£1799.92i

1

£1372.88i

2

£1213.35i

5

£949.39i

10

£742.71i

15

£640.68i

How do I get my insurance down as a new driver?  

There are a few things you can do to help lower your costs as a new driver here are a list of useful tips:   

Higher excess

Your excess amount is the amount you will have to pay in the event of a claim. Usually people would want this to be as low as possible so any costs associated with an incident go straight to the insurer, however, as a new driver, opting for a higher excess can make your premiums lower – just be sure you will be able to pay the amount you choose in the car of an accident.

Telematics/ black box insurance  

As a new driver, a telematics policy may be your only affordable option, especially if you’re aged between 17 and 19. A black box/telematics box is a box that is a small piece of technology that is attached to your car, given to you by your insurer, to monitor your driver. It will judge your driving based on your braking, acceleration, speeding, miles driven, and even how often you're driving and at what times during the day, all of which will impact your diving score. 

Adding a named driver  

Adding a driver who has more experience will show your insurer that you will be sharing the driving with a more experienced driver and will therefore offer you a cheaper price for your insurance policy.

Choosing a cheaper car from a lower insurance group

Every car falls into an insurance group and the lower the insurance, usually the less expensive the car is to repair. The car is also rated highly for its safety features and its also less likely to be stolen.

Add security but avoid modifications  

Adding extra security to your car such as adding a dash cam can help lower your premiums. However, modifications can work the other way. You need to make your insurer aware of any modifications you make to your car or you can risk your policy being cancelled. 

The type of car you drive

The type of car you drive impacts your insurance the most, the model, the make, the engine size, and the age of the car all play a vital role. 

Things you don’t realise are making your insurance more expensive:

Add-ons 

You can choose to omit certain aspects of your policy that are probably making your insurance more expensive. Options such as breakdown cover, windscreen protection, and courtesy car cover can cause your premiums to go higher.

Claims  

If you have made any previous claims or any claims have been made including you, that will impact the price of your insurance. Any claims made do increase your premiums. It’s important to note that failing to disclose previous claims while you’re finding new quotes for your car insurance, can result in the cancellation of your policy in the future.

Monthly vs annual

Paying for your policy annually can save you money. Choosing to pay monthly will add on an interest fee so paying once annually will be cheaper for you. 

Voluntary excess 

The higher your voluntary excess, the cheaper your premiums will be, however, this is the amount to volunteer to pay yourself in every claim you make or is made against you so be sure to choose an excess amount you will be able to pay yourself.

Annual mileage

Lower annual mileage often translates to lower premiums.

Your choice of car

Big engine sizes, performance cars, and cars that are on the expensive side can increase your premiums.

A bad telematics score  

A bad telematics score indicates that you do not have safe driving habits however, at the end of your policy, your driving score will not be shared with other insurers.

Your age

As a young driver you are seen as less experienced and a higher risk to insurers, therefore be prepared for higher premiums.   

It is important of remember that all these factors work in conjunction with each other / together. Always compare quotes on our comparison tool to find the best policy to suit your needs at a price that works for you.  

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  1. Based on the median annual price of comprehensive policies sold through MoneySuperMarket in April 2024.