How much is car insurance for new drivers?
MoneySuperMarket’s latest data shows the average annual premium for a new driver aged 17 to 24 was £1,116.27* in March 2018. Insurers base car insurance premiums on potential risk, which is why the cost of insurance for a young driver is typically higher.
MoneySuperMarket data showing the average quoted premium for new drivers aged between 17 and 24. Correct as of March 2018
Why is car insurance for new drivers so expensive?
When searching for cheap insurance, new drivers generally have the toughest time. Inexperienced motorists are seen as a big risk for insurers and this is reflected in the price of car insurance for new drivers. If you’re aged between 18 and 21, for example, then you make up 70% of claims for fully comprehensive insurance – which is the reason behind the high price of premiums.
Statistically speaking, one in five new drivers is involved in a crash within 12 months of passing their test. What’s more, motorists between the ages of 17 and 24 are responsible for a third of all fatalities on the road. But, there are a number of ways you can reduce the cost of cover by undertaking cost-cutting steps, as detailed below.
MoneySuperMarket data showing the average quoted fully comprehensive premium for new drivers aged between 17 and 24. Correct as of March 2018
Consider black box insurance
Telematics insurance might be the best car insurance for new drivers because it’s often the cheapest way to get covered. Insurers think black box insurance could save a new driver up to 25% - and our latest data shows that 17 to 24-year-old drivers could save an average of £363.25 with this type of policy. It’s likely that telematics could present an option for car insurance for new drivers, and is worth considering.
Telematics is a relatively new form of insurance where a vehicle is fitted with a ‘black box’ data-recording device, which is about the size of a smartphone. The device records driving performance – taking into account whether speed limits are adhered to and also monitoring cornering and braking.
This helps the insurer build up a profile of the policyholder and offer them premiums which take into account their overall performance and the statistical likelihood of them being involved in accidents. Getting a black box fitted could be the cheapest route to the best insurance for new drivers.
MoneySuperMarket data showing the average quoted savings for drivers aged 17 to 24 when they take out a telematics policy, between January and March 2018.
“Although car insurance for new drivers is likely to make a dent in your finances, going without just isn’t an option.”
Car insurance is compulsory
No matter what, car insurance is compulsory and you simply have to be covered. The government cracked-down on the large number of uninsured drivers with the introduction of Continuous Insurance Enforcement (CIE) which states that every car, whether on or off the road, has to be covered. The only exception to this is if the car is declared off the road with a Statutory Off Road Notification (SORN).
Those risking driving without motor insurance are not only committing an offence, but they can also expect to be hit with steep penalties. This could result in a fine, court prosecution or your car being seized and destroyed.
MoneySuperMarket data showing the average quoted premiums for drivers aged 17 to 24, between January and March 2018.
Find the cheapest insurance for new drivers
Although car insurance for new drivers is likely to make a dent in your finances, going without just isn’t an option. However, the good news is that there are some tricks to help get the cheapest insurance for new drivers:
- Shop around: Never just accept the first new driver car insurance quotes you get. Shopping around and comparing prices will allow you to weigh up your options and get the most suitable and cheapest car insurance quotes available.
- Reduce your mileage: One of the things insurers will look at is how many miles you estimate you’ll be covering over the course of the year. The less you are out on the road, the less of a perceived risk you are. Therefore, being accurate with your estimate mileage will avoid overpaying for miles you won’t use. And if you can reduce this by using public transport or getting involved in a car share you may save money on your premium.
- Take an advanced driving course such as Pass Plus: As well as improving your driving, insurers will look favourably on this extra experience and it may result in cheaper new driver car insurance premiums.
- Opt for a higher excess: Opting to pay a higher excess can reduce your premium – just make sure you would actually be able to afford this if you did need to put in a claim.
- Buy online: Purchasing your car insurance online may attract discounts.
- Keep your car safe: You will often be offered cheaper new driver car insurance quotes if the insurer believes that the vehicle is less likely to be stolen or vandalised. You can achieve this by simply parking the vehicle in a locked garage at night or at least off the road on a secure driveway. If this is not possible, then you could look at adding security enhancing devices such as immobilisers, tracking devices and alarms.
- Named drivers: If you add a named driver to your policy who is older and/or more experienced, the car insurance provider will likely offer cheaper premiums because they will assume that driving responsibilities will be shared and hence the riskier motorist will be spending less time behind the wheel. This often results in cheaper premiums. You can read more about this on guide to named driver car insurance – but make sure you don’t break the law by ‘fronting’ your policy.
- Black box: the aforementioned black box, or telematics insurance policy, could potentially be a great way to overcome statistics and prove to insurers that not all new drivers are bad drivers.
For more ideas on how you could find cheaper car insurance for new drivers, visit our money saving tips page.