The Young Driver Insurance Test

Car insurance is a legal requirement for drivers on UK roads, but being insured also means knowing what your policy covers and what information you must keep up to date with your insurer. Foryounger drivers who may be arranging their own cover for the first time, understanding these responsibilities is an important part of becoming a confident and informed motorist.

To explore how well young motorists understand these responsibilities, we’ve surveyed 2,000 UK drivers aged 17-25 about their knowledge and confidence around car insurance, as well as which areas they wish they’d understood better before they started driving. The findings show how well new drivers understand insurance and where there can be gaps in knowledge. 

How Well Do New Drivers Understand Car Insurance?

Getting your driving licence is a big step, but for less experienced drivers in particular, there may be uncertainty around the situations that could affect their cover, from what they need to declare to their insurer to how everyday driving decisions could impact their policy. 

Where young drivers feel least confident when it comes to car insurance

Overall, young drivers told us they feel fairly confident about car insurance, with an average of 77% saying they feel confident across the 15 topics we tested. However, that confidence varies considerably, particularly when it comes to understanding some of the more technical aspects of a policy.

Taking the top spot for uncertainty, almost three in 10 young motorists (30%) said they feel unclear about how filing a Statutory Off Road Notification (SORN) could affect their insurance. Over a quarter (27%) reported low confidence about policy exclusions, with drivers aged 21-22 reporting the highest level of confidence among this age group (23%). Around one in four (24%) were unsure about how their job title can influence the cost of their premium.

However, young drivers are considerably more confident when it comes to the fundamentals of their cover. Understanding what their car insurance covers ranked highest, with 84% saying they feel confident in this area, followed by understanding how named drivers work on a car insurance policy (81%).

What young drivers wish they’d known about car insurance before becoming a driver

When asked which topics, if any, they wished they had learned more about before becoming a driver, the vast majority of young drivers (96%) selected at least one. 

The car insurance topics young drivers wish they’d learned more about before becoming a driver

How to reduce the cost of car insurance came top, chosen by almost one in ten, followed closely by what to do after an accident and how to make a claim (9%), what car insurance actually covers (7%) and the impact of SORN on a policy (7%). 

The State of Young Drivers’ Insurance Knowledge

With 96% of young drivers identifying at least one area they wished they had learned more about earlier, we wanted to see how this translated into their knowledge of car insurance. 

How easy is car insurance to understand for young drivers? 

To explore how confident young drivers are when it comes to car insurance, the same 2,000 drivers were asked 50 questions covering everything from different types of cover to costs, payouts and what information needs to be shared with an insurer.

To pass the quiz, participants needed to answer at least 26 questions correctly. Overall, 51.8% reached this threshold, highlighting some of the areas where young drivers feel the least confident.

Pass rate calculated as achieving more than half of the questions correct

We’ve explored some of the questions where there was the most uncertainty, helping to highlight the areas of car insurance that can be less intuitive for young drivers, from understanding what different levels of cover provide to knowing when changes to their circumstances need to be declared to an insurer.

More than a third were unsure what third-party insurance covers

One area where young drivers showed uncertainty was around third-party insurance. When asked whether third-party insurance covers damage to their own car if they cause an accident, 35% thought this was true, while 42% correctly identified it as false.

Third-party cover is designed to pay for injury or damage caused to other people and their property, rather than damage to the policyholder’s own vehicle. This could be particularly important for young drivers, who may opt for third-party cover when looking to keep their insurance costs down. 

Alicia Hempsted, Car Insurance Expert at MoneySuperMarket, explains the importance of understanding what is and isn’t covered by your policy, and how this could help young drivers avoid unexpected costs after an accident:

“Third-party insurance is the minimum level of cover required to drive legally in the UK, but it only protects other people, their vehicles and their property if you’re at fault in an accident. It won’t cover damage to your own car, so if you want cover for your own vehicle too, you’d need a third-party, fire and theft or comprehensive policy. It’s always worth checking exactly what your policy covers, rather than assuming you’re protected.”

Over a third were unsure whether they need to declare an accident that wasn’t their fault

Over a third (34%) of young drivers didn’t know they needed to tell their insurer about an accident even if it wasn’t their fault. This isn’t something that applies only to young drivers, as many experienced drivers aren’t aware of this either, which can put their insurance cover at risk.

Alicia Hempsted explains: 

“Being involved in an accident doesn’t necessarily mean you were at fault, but it’s still important to report the incident to your provider, no matter how minor or whether you want to make a claim. Keeping your insurer informed about incidents can help to ensure your policy records are accurate, avoiding the risk of non-disclosure – which can affect your ability to claim on your policy – and allowing your insurer to step in if there are any disputes around fault.”

Two in five were unsure whether they need to tell their car insurer about a new job

When asked whether they need to tell their insurer if they change jobs, 40% of young drivers said ‘no’. However, your occupation can affect your insurance cost, so your insurer needs to know about any change. 

This is particularly relevant for young drivers, who may be moving from education into their first job, changing roles, or taking on work alongside their studies. Occupation can affect how, where and when someone uses their car, which insurers take into account when assessing risk and calculating premiums. Not updating your details could mean your policy no longer accurately reflects your circumstances. 

Alicia Hempsted explains:

“Your occupation is one of the factors insurers consider when assessing your policy, as different jobs can mean different patterns of driving and car use. For a young driver, starting their first job, changing roles or taking on work alongside their studies could therefore affect the cost or terms of their cover. It’s important to tell your insurer when your circumstances change so they can make sure your policy accurately reflects how you’re using your car. If you don’t update your details, you could risk your claims being denied or your policy being invalidated, leaving you without legally required insurance cover.”

More than one in five were unsure whether a change of address needs to be shared with their insurer

We found that 22% of young drivers said ‘no’ to needing to declare a change of address to their insurer. 

This is particularly relevant forstudent drivers, who may move between a term-time address and their family home. Where the car is normally kept could change during this time, making it important to check that the information held by their insurer accurately reflects their circumstances.

Alicia Hempsted explains when moving address could affect your car insurance:

“It’s important to tell your insurer if your circumstances change, as where your car is usually kept is one of the main factors considered when assessing your cover. For young drivers moving away from home, such as going to university, this can be a little more complicated if they regularly split their time between a term-time address and their family home. The address associated with your car insurance policy should always be your main address – meaning the address you use most of the time. If you are spending the majority of the time living at your student accommodation, not your parents’ home, then you will need to update your address on your insurance policy. Failing to do so could result in a rejected claim or even invalidate your policy altogether.”

Almost a third were unsure whether breakdown cover comes as standard with car insurance

Nearly a third of young drivers (31%) thought that breakdown cover is automatically included with every car insurance policy. In reality, breakdown cover is generally separate from car insurance and may be offered as an optional add-on or through a standalone policy.

For young drivers buying their first policy, understanding the difference between the two types of cover is important. Car insurance provides cover for specific risks involving the vehicle and other road users, while breakdown cover is designed to provide assistance if the vehicle breaks down. Assuming it is included when it isn’t could leave a driver being caught off guard by the cost of arranging assistance themselves.

Commenting on why young drivers shouldn’t assume breakdown cover is included, Alicia Hempsted says:

“For young drivers buying their first policy, checking exactly what is and isn’t included can help avoid an unexpected cost if their car breaks down. Breakdown cover, while a useful cover to have, isn’t usually included with standard car insurance. Instead, it can be bought as a separate policy or often comes as an optional extra alongside other useful added covers, like key protection, misfuelling protection, and courtesy car cover. 

While these added cover types come at an extra cost – which young drivers in particular need to keep in mind considering they face the highest premiums out of all age groups – they can offer valuable protection as young drivers learn to get comfortable on the road.” 

What newly qualified drivers need to know beyond the driving test

Our findings suggest that passing the driving test doesn’t necessarily mean young drivers feel confident about the responsibilities that come with driving independently. To put these knowledge gaps into context, we spoke to Alex Jones, Senior Training Manager at Bill Plant Driving School, about the broader challenges newly qualified drivers face as they transition from learning to driving independently. 

Alex Jones explains:

“Learning to drive is a core life skill, but passing the test is only part of the journey. For learners who focus solely on passing the test, this can leave gaps in cognitive, situational, and behavioural skills. 

Alex Jones adds:

“Many collisions involve newly qualified drivers who lack experience in ‘real-world driving’. Hazard perception and anticipation, which include aspects such as maintaining a safe following distance and appropriate speed, are essential. New drivers can be over-confident, which can be especially dangerous in challenging conditions such as motorways, night driving, or driving in rain, fog or ice. New drivers also need to be especially aware of the risk of distractions such as mobile phones, passengers and loud music, for example. Concentration is key.”

The same principle applies to the wider responsibilities that come with owning and driving a car. Once they’re driving independently, young motorists need to manage things they may not have had to think about during lessons, from vehicle maintenance and warning lights to running costs, insurance, MOT and tax. 

Methodology and sources

Sources and methodology:

To create this report, MoneySuperMarket surveyed 2,016 UK drivers aged 17-24. 

Questions were asked to understand drivers' understanding of the insurance implications of everyday driving decisions, covering areas such as who can drive your car, where you usually park, whether you use your car for work or commuting, making modifications, and what information you need to declare to an insurer.

The pass rate is calculated as answering more than half of the questions correctly.

The survey was conducted between 10th and 17th September 2026.