If you have just passed your test and are itching to get out there on the open road, you are likely to find that you won’t be able to get that modified motor you were dreaming of. This is because, unfortunately, car insurance for young people is often expensive.
Young drivers insurance costs an average of £1,197* for a fully comprehensive policy*. Since young drivers aged 18 to 24 are considered the riskiest on the road, and therefore more likely to make a claim, it’s no secret that they tend to pay more for their insurance.
While it can be challenging to find cheap car insurance for younger drivers, it is not impossible. This guide will help you find a better deal for your car insurance, hopefully without breaking the bank.
According to the average price of quotes run on MoneySuperMarket in between January and March 2018.
What are the cheapest cars to insure for young drivers?
All cars are classified into insurance groups, numbered from one to 50, with the cheapest cars to insure sitting in the first group. More powerful cars, or those which have been modified to improve their performance, will sit in the higher groups, making them much more expensive to insure.
As of March 2018, the cheapest cars to insure for drivers under 25 are:
Car manufacturer and make
Average annual cost of car insurance
Data collated between January and March 2018, from cars in insurance groups 1-3, and manufactured from 2006 onwards. Based on car insurance quotes run on MoneySuperMarket.
As the table shows, your ideal car might not be the best option if your priority is saving money on your car insurance. It pays to do your research, and opt for a model of car which could be cheaper to insure.
As a younger driver, you have probably got a few car models already in mind. Our car insurance comparison service lets you research different types of car to get an idea of what cover you might get, and at what price.
Best insurance for young drivers
Everyone must have insurance, by law, and the minimum level of insurance you can have is third party car insurance, followed by third party fire and theft (TPFT), which offers you more protection for your vehicle. The most extensive level of cover is fully comprehensive car insurance, which covers you for the most types of claim.
Surprisingly, it’s important to compare all levels of car cover because fully comprehensive is rarely the most expensive option. This is because third party, and TPFT, have become the choice of riskier or convicted drivers looking to save money. This has prompted insurance companies to significantly raise the price of these policies.
In fact, if you are a young driver, an average third party only policy costs around £1,050 more than the average fully comprehensive policy. The average cost for a third party only policy for 18 to 24 year-olds was £2,263.35, compared with £1,197 for a fully comprehensive policy*.
Consider the ‘telematics’ option
Whether you call it black box or telematics car insurance, this satellite technology offers an effective way to lower the cost of car insurance for young drivers – MoneySuperMarket data shows that you could save an average of £385.25.
Telematics works by using a small transmitter in your car, or via a smart phone app, to relay information on your driving style and driving patterns back to your insurer, so they can base the price of your premium on how you actually drive- not how other people in your demographic drive.
This approach is viewed as a fairer way of pricing policies and has led to young drivers’ premiums significantly falling. Black box insurance becomes less impactful as you get older and more experienced as a driver, so it might be more worth considering before you reach your 25th birthday.
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.
Cheap car insurance for young drivers
The good news is that there are a number of ways for younger drivers to get cheaper car insurance.
- Compare car insurance quotes. By using our comparison tool you can instantly compare car insurance quotes to find the best cover to suit your motoring and financial requirements.
- Improve your driving skills. Some insurers will reduce your premium if you have completed the government’s Pass Plus scheme.
- Add a named driver. Remember it’s crucial that the person who does the most driving in the car is listed as the ‘main driver’. Only a third (34%) of young drivers utilise this way of making their policy cheaper.
- Pay upfront for your annual car insurance. Paying monthly can cost more due to the interest charged on instalments.
- Pay a voluntary excess. Keep in mind that, after a certain level of excess, the cost of cover doesn’t change, and you must be sure that you can afford the level of excess that you have set.
The average cost of insurance for cars in insurance groups 1-3, and manufactured from 2006 onwards is based on car insurance quotes run on MoneySuperMarket between January and April 2018.
Compare young drivers insurance with MoneySuperMarket
It is a good idea to compare car insurance quotes as a young driver as MoneySuperMarket search through hundreds of competitive policies to do the hard work for you. If you are a young driver, we could help you find an affordable policy tailored to your needs.
When you compare, you will be asked about your car, where you live, your occupation and if you have any convictions – driving or otherwise. It is important to answer truthfully and disclose anything you feel may be required. If you do not, then when you make a claim your policy could be invalid and your claim will be rejected.
Comparing car insurance only takes a few minutes and you could save hundreds of pounds on your premium. Get your journey started today and find the correct policy for you.
*MoneySuperMarket data, January to March 2018.