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Car insurance is a legal requirement for new drivers and anyone driving on a public road in the UK. That’s the case whether you have a full driving licence or a provisional licence.
Anyone caught driving without insurance could face a fine as well as a driving ban, so it’s important to stay insured.
Although there’s no type of insurance specifically tailored to new drivers, those driving for the first time can often be quoted premiums in the thousands of pounds.
If you can pay the higher premium upfront, paying annually is the cheapest way to save money on your car insurance in the long-term. Ultimately, with every year of driving without making a claim, your premium will come down.
Black box or telematics insurance can make up for your inexperience on the road. These policies are designed to track how well you drive over time. If you drive well and safely, insurers are far more likely to bring your premiums down quicker than if you had taken out a standard policy. Although the upfront cost will be high in your first year, you’re setting yourself up for cheaper premiums year-on-year if you consistently drive well and don’t make a claim.
You’ll see black box policies alongside standard insurance quotes when you compare with us, so look out for Admiral LittleBox, RAC Black Box, Privilege Telematics and Stella Telematics, as well as others.
Not all new drivers will need to be driving consistently every week. If you’re moving to university or can rely on public transport, and you can’t afford high insurance costs, then temporary car insurance may be worth considering. Temporary insurance can typically last between one and thirty days, so it's useful if you’re only driving occasionally.
Pay-as-you-go policies charge you based on how much you drive, so they can be a good idea if you’re not driving very often and need your car regularly for small trips.
While telematics and temporary car insurance technically fall into this category, pay-per-mile insurance can take the form of a rolling contract where you pay a set rate every month, and then an additional price for each mile you drive.
Car insurance is generally more expensive the less time you’ve been on the road, but prices tend to drop as you become more experienced. Drivers who have held a licence for 5 years pay £897.21[2] on average, while first-time drivers pay an average £1493.08[2] a year.
Number of years with a driving licence | Average annual premiums |
|---|---|
0 | £1493.08[2] |
1 | £1225.66[2] |
2 | £1103.48[2] |
5 | £897.21[2] |
Lower prices will depend on you being a good driver. Being involved in accidents, making claims, or getting driving convictions will increase the price you're quoted when renewing or switching insurance provider.
10% of 17-19 year olds pay this amount or less for fully comp with us
It costs this amount on average for 17-19 year olds to insure their car
Insurers charge first-time drivers more because they have little to no experience on the road and, therefore, are riskier to insure. The truth is, one in five drivers crash within the first year of completing their test, so insurers expect to pay out more money for this demographic.
And while consumer champion Martin Lewis recently revealed that car insurance prices were down 16% year-on-year, prices are still far higher than they were two years ago - even prompting the formation of a government-led taskforce to try and get a fairer deal for consumers.
Prices remain high for a number of reasons, including:
An increase in car insurance claims - motor insurance pay-outs hit a record £11.7 billion in 2024
Rising energy prices
Increased labour costs
Used cars are more expensive
For more information about the increasing costs of car insurance, read our article: Why has car insurance suddenly got so expensive?
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Don’t go with the first quote you find. If you’ve been to insurers directly that’s great, but make sure you use price comparison sites like MoneySuperMarket to ensure you’re getting the best price. We’ll show you quotes from a range of insurers, as well as black box policies.
When you buy car insurance through us, we can keep your details on file and let you know when it's time to renew next time, and this will save you money in the long-run. For example, we know that the cheapest time to renew your car insurance is 22[12] days out. And doing so would save you £227.36[12] compared to renewing at the last minute.
Car insurance will be cheaper if you're insuring a smaller car with a smaller engine. Why? When cars are manufactured they're added to insurance groups. These groups, ranging from 1 to 50, are designed to help insurers determine the cost of insuring a vehicle, so if your car is in insurance group 1, then it's going to be cheaper for the insurer and favourably affect your risk profile.
You can check the insurance band of any car by using our insurance group checker.
As a new driver it's hard to know how many miles you'll drive. However, overestimating your annual mileage will cost you dearly. The more miles you drive, the more at risk you are of being involved in an accident.
If you can, consider the prospect of using your car less and don't overestimate your annual mileage when getting quotes.
Here's how annual mileage affects how much 17-24 year olds pay per year:
Annual mileage (miles) | Average price for a 17-24 year old driver |
|---|---|
0 - 5,000 | £1386[13] |
5,001 - 10,000 | £1348[14] |
10,001 - 20,000 | £1368[15] |
20,001 - 30,000 | £1591[16] |
30,001 - 40,000 | £1634[17] |
Black boxes and telematics devices give new drivers a little bit of control over the cost of their car insurance. If you drive well in the first year of having a policy, this will reflect positively in next year's quote.
Accessories and modifications like alloy wheels and spoilers will increase your premium.
There are three main types of young driver insurance you can choose from:
Covers damage to your own or other people's vehicle, medical expenses, fire damage, and theft of your vehicle
Covers property damage and injury to third-parties, fire damage to your vehicle, and theft of your vehicle
The minimum level of cover legally required, it only covers third-party property damage and injury
Insurance groups are a system used by car insurance companies to categorise vehicles based on their perceived risk level. Groups are numbered from 1 to 50, with group 1 being the cheapest to insure and group 50 being the most expensive.
Factors like repair cost, performance, security features, and the likelihood of claims are used to determine a car's insurance group.
Here are the cheapest car insurance providers for new drivers:
Insurance provider | Annual policy cost |
|---|---|
Performance Direct[18] | £284.56[18] |
Co-Op Essentials[19] | £335.32[19] |
Carole Nash[20] | £357.44[20] |
Saga[21] | £366.35[21] |
Rac Online[22] | £381.46[22] |
It's worth noting that the cheapest option might not always be the right decision. Add-ons such as breakdown cover aren't typically included on cheaper policies, so you'll end up paying more for a separate breakdown policy.
It's always worth comparing quotes and weighing up costs before you commit to a cheaper policy.
Comprehensive cover is the best option for new drivers, as you're fully covered if you end up in an accident. While this can be more expensive, it's worth it for peace of mind.
You could also consider adding yourself as a named driver to a parent's policy while you gain confidence on the road, or look into black box insurance to build a good driving profile, which will help you get lower premiums.
Yes, adding a second driver to your policy who is considered a much lower risk, e.g. a parent or guardian will typically make car insurance cheaper.
When you're a new driver, insurers view you as high-risk, so adding someone older who has built up their no-claims bonus will increase the chances of lowering your premiums, as insurers view them as less of a risk.
However, it's important to add a second person as a named driver only if you're the main policy holder. Adding someone as the main driver when they're not in an effort to reduce the cost of your insurance is called fronting and is illegal.
The most popular cars for first-time or new drivers tend to be smaller, less powerful models that are cheaper to insure. These cars are usually in the lower insurance groups.
Vehicle model | Average annual premium |
|---|---|
HYUNDAI I10 SE[23] | £865[23] |
PEUGEOT 108 ACTIVE VTI 68[23] | £872[23] |
CITROEN C1 VTR[23] | £906[23] |
FIAT 500 LOUNGE[23] | £915[23] |
VOLKSWAGEN UP! MOVE UP[23] | £919[23] |
VAUXHALL ADAM ENERGISED VVT[23] | £950[23] |
FIAT 500 POP[23] | £951[23] |
PEUGEOT 107 URBAN[23] | £986[23] |
TOYOTA AYGO X-PLAY VVT-I[23] | £987[23] |
PEUGEOT 107 ACTIVE[23] | £1000[23] |
Yes, black box or telematics insurance can help reduce the cost of your premiums as a new driver. Insurers install a small GPS tracking device in your car that can monitor your driving skills. You can also download an app or use a plug-in device to track your driving.
If you show you are a competent, safe driver then over time your insurance premiums typically go down. Insurers may also offer discounts, money-off vouchers and cashback if you can show you’re consistently driving well.
Based on a fully comprehensive policy, here is what is and isn't covered with new drivers insurance:
Damage to your vehicle
Third-party damage caused by your vehicle
Motor legal protection
Serious or fatal injuries
Vehicles and drivers not named on your policy
Standard wear and tear
Accidents if you're under the influence
Invalid driving licence
Add-ons will cover you for scenarios and costs that are not typically included in car insurance policies. While add-ons like breakdown cover can provide extra peace of mind, they do come with an extra cost that will be added to your policy.
Covers call-outs to mechanics if your car breaks down
Provides replacement vehicles while yours is being repaired
Pays a lump sum if you’re injured in a road accident
Protects your no claims discount for a certain number of claims
Covers certain legal fees if you are involved in a road incident
Covers the cost of replacing lost or damaged keys
Covers repairs if you put the wrong fuel type in your car
Covers the repair or replacement of cracked windscreens
Covers damaged or stolen personal belongings in your car
According to the Association for British Insurers, the average cost of car insurance fell by 2% in July to September 2024, which looked promising for new drivers.
However, the average cost of motor insurance in the third quarter of 2024 was 9% higher than the same period in 2023 due to a number of factors, such as record claim numbers and inflation.
The good news is there are still ways to save money on your car insurance if you've just passed your test. Comparing quotes with us is one of the best way to ensure you're getting the lowest price.
If you’re a new driver, driving safely on a telematics policy could also help you save in the long run. Still saving for a car? Adding yourself as a named driver to another policy could help bring the cost down when the time comes to take out your own car insurance.
Sara Newell Director of Insurance
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Having car insurance at a minimum level of third-party cover is mandatory to protect drivers on the road - it was written into law as part of the Road Safety Act of 1930.
Having at least third-party insurance means if you’re at fault in an accident, the other person involved is financially protected if their car or property incurs damage, or they are injured.
The best car insurance for new drivers will depend on your circumstances. Certain policy types can be cheaper if you drive less frequently, have multiple cars, or aren't the main driver of the vehicle.
The variety of options available means it’s so important to compare cover from different insurers to find the best deal.
Be careful when choosing add-ons. While they bolster your cover, you’ll generally need to pay more for the extra protection.
Depending on your provider, you’ll usually have the choice of:
While advance driving courses like Pass Plus or IAM make you a better driver, they won’t always save you money on your car insurance policy. Discounts depend on your insurer and the average person typically won’t see any difference in premiums.
However, younger or inexperienced drivers might be able to save a few quid, and if the skills you learn help you avoid accidents in future, this will also help keep your costs down.
As a young or new driver, you might be able to knock a few quid off your premiums by adding another more experienced driver to your policy – in most cases this will be your parents.
While this can be a good way to get cheaper cover, people sometimes take advantage of this by declaring the older or more experienced driver as the ‘main driver’ even when the newer driver is using the car more frequently. This is known as ‘fronting’ and is illegal.
Excess payments refer to how much you’ll need to put towards the total claim cost before your insurer pays the rest.
By increasing your voluntary excess fee on top of the compulsory amount, you indicate to insurers you won’t make small or frivolous claims, so they will usually reduce the cost of your policy.
A no-claims bonus is what you earn when you go some time without claiming on your policy. The longer you’ve gone without claiming, the more your insurers will knock off your premiums.
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
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Based on the median annual price of comprehensive policies sold through MoneySuperMarket in March 2025.
Based on the 51st percentile of comprehensive for 17-19 aged policyholders car insurance policies sold through MoneySuperMarket in the month of March 2025.
Based on the 51st percentile of third party, fire & theft for 17-19 aged policyholders car insurance policies sold through MoneySuperMarket in the month of March 2025.
Based on the 51st percentile of third party only for 17-19 aged policyholders car insurance policies sold through MoneySuperMarket in the month of March 2025.
Based on the 10th percentile of comprehensive for 17-19 aged policyholders car insurance policies sold through MoneySuperMarket in the month of March 2025.
Based on the median annual price of comprehensive car insurance policies sold through MoneySuperMarket in March 2025.
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Based on 1 visit per month – average ticket value £15.30 (Oct 24)
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Based on Car Insurance enquiries on MoneySuperMarket between 2025-01-01 and 2025-04-01 where the quote was for comprehensive covertype.
Based on the median annual price where policyholder was in the age group 17-24 and the mileage was between 0-5,000 for car insurance policies sold through MoneySuperMarket between January 2025 and March 2025.
Based on the median annual price where policyholder was in the age group 17-24 and the mileage was between 5,001-10,000 for car insurance policies sold through MoneySuperMarket between January 2025 and March 2025.
Based on the median annual price where policyholder was in the age group 17-24 and the mileage was between 10,001-20,000 for car insurance policies sold through MoneySuperMarket between January 2025 and March 2025.
Based on the median annual price where policyholder was in the age group 17-24 and the mileage was between 20,001-2000 for car insurance policies sold through MoneySuperMarket between January 2025 and March 2025.
Based on the median annual price where policyholder was in the age group 17-24 and the mileage was between 30,001-40,000 for car insurance policies sold through MoneySuperMarket between January 2025 and March 2025.
Based on the average annual price of policies sold through performance direct on MoneySuperMarket between January 2025 and March 2025 and the provider sold with over 200 sales in the period, where only one driver was on the policy who had held a full uk car insurance license for at least 1 year.
Based on the average annual price of policies sold through co-op essentials on MoneySuperMarket between January 2025 and March 2025 and the provider sold with over 200 sales in the period, where only one driver was on the policy who had held a full uk car insurance license for at least 1 year.
Based on the average annual price of policies sold through carole nash on MoneySuperMarket between January 2025 and March 2025 and the provider sold with over 200 sales in the period, where only one driver was on the policy who had held a full uk car insurance license for at least 1 year.
Based on the average annual price of policies sold through saga on MoneySuperMarket between January 2025 and March 2025 and the provider sold with over 200 sales in the period, where only one driver was on the policy who had held a full uk car insurance license for at least 1 year.
Based on the average annual price of policies sold through rac online on MoneySuperMarket between January 2025 and March 2025 and the provider sold with over 200 sales in the period, where only one driver was on the policy who had held a full uk car insurance license for at least 1 year.
Based on the median annual price of car insurance policies sold through MoneySuperMarket between January 2025 and March 2025 for policyholders under 21s with more than 49 sales in the period.
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