Young drivers insurance cost an average of £1,183 for a fully comprehensive policy in June 2017, according to MoneySuperMarket data. Since young drivers are considered the riskiest on the road, it’s no secret that they tend to pay more for their insurance.
Car insurance for young drivers is expensive because young motorists are considered statistically riskier drivers by insurers, so are more likely to make a claim.
It can be challenging to find cheap car insurance for younger drivers, but it is not impossible. Read on to find out how to get a better deal on your policy.
MoneySuperMarket data. Correct as of June 2017
What are the cheapest cars to insure for young drivers?
The cheapest cars to insure for drivers under 25 are:
Car manufacturer and make | Average annual premium |
|---|---|
Fiat 500 | £807.52 |
Ford Ka | £832.16 |
Citreon C1 | £839.63 |
Peugeot 107 | £847.33 |
Fiat Panda | £863.52 |
Renault Twingo | £868 |
Toyota Aygo | £881.99 |
Suzuki Alto | £887 |
Toyota Iq | £890.14 |
Data collated between August 2017 and Jan 2018, from cars in insurance groups 1-3, and manufactured from 2006 onwards. Based on car insurance quotes run on MoneySuperMarket.
As the data shows, your dream 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 which could be cheaper to insure.
As a younger driver, you’ve probably got a few car models in mind already. Our car insurance comparison service lets you research different types of car to get an idea of what cover you could get, and at what cost.
MoneySuperMarket data. Correct as of June 2017
Types of car insurance
Third party car insurance is the minimum level of insurance required by law, followed by third party fire and theft (TPF&T), which offers you more protection for your vehicle, and finally fully comprehensive car insurance, which is the most extensive level of cover.
It’s important to compare all levels of cover because fully comprehensive is not always the most expensive option, contrary to what you might expect. This is because third party and TPF&T have become the reflex choice of risky drivers looking to save money, which has prompted insurance companies to raise the price of these policies.
In fact, an average third party only will set you back around £500 more than a fully comprehensive policy, if you are a young driver.
MoneySuperMarket data. Correct as of June 2017
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.
It works by using a small transmitter in your car 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 and less on how people in your age group drive.
In some instances, the information is relayed via an app you download to your phone.
This approach is viewed as a fairer way of pricing policies and has seen many young drivers have their premiums significantly reduced.
Learn more about telematics car insurance.
MoneySuperMarket data. Correct as of January 2018
Cheap car insurance for young drivers
The good news is that there are a number of ways to get cheaper car insurance for young drivers:
1. 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.
2. Improve your driving skills
Some insurers will reduce your premium if you have completed Pass Plus.
3. Add a named driver
But remember it’s crucial that the person who does the most driving in that car is listed as the ‘main driver’.
4. Pay upfront
Paying monthly can cost more due to the interest charged on instalments.
5. 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 for yourself.