How much is car insurance for new drivers?
The average annual premium for new drivers was £979 during the first part of 2019. Insurers base car insurance premiums on potential risk, which is why the cost of insurance for a new driver is typically higher.
According to MoneySuperMarket data correct as of March 2019
Why is car insurance for new drivers so expensive?
When searching for cheap insurance, new drivers generally have a tougher time than any other demographic. Inexperienced motorists are seen as a big risk for insurers and this is reflected in the price of car insurance for new drivers.
But there are a number of ways you can reduce the cost of car insurance:
According to MoneySuperMarket data correct as of March 2019
Consider black box insurance
Telematics insurance is a decent option for new drivers’ car insurance because it’s often the cheapest way to get covered. Also known as ‘black box insurance’, it can save younger drivers up to an average of £151.25.
Telematics is a relatively new form of insurance where a vehicle is fitted with a 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 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. Fitting a black box could be the cheapest route to the best insurance for new drivers – especially if they are aged 24 or under.
According to MoneySuperMarket data correct as of March 2019
Car insurance is compulsory
No matter what, car insurance is compulsory and you legally have to be covered. The government cracked down on 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 is if the car is declared off the road with a Statutory Off-Road Notification (SORN).
Those driving without motor insurance are not only committing an offence, but can also expect steep penalties. This could result in a fine, court prosecution or having their car seized and destroyed.
According to MoneySuperMarket data correct as of March 2019
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 tricks to help find the cheapest insurance quotes:
- 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 it 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 and pretending someone else drives your car if they don’t!
- 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.
How to save money on your car insurance infographic
For more ideas on how you could find cheaper car insurance for new drivers, visit our money-saving tips page.