If you have just passed your test and are itching to get out on the open road, you will probably find can’t afford that sleek, modified motor you were dreaming of. This is because, unfortunately, car insurance for young people is almost always much more expensive than for anyone else.
Since young drivers aged 18 to 24 are considered the riskiest on the road, and are 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 MoneySuperMarket data correct as of March 2019
What are the cheapest cars to insure for young drivers?
Every car is classified into a different insurance group, numbered from one to 50. The cheapest cars to insure sit in the first group, but the more powerful or valuable the car, the higher and therefore more expensive the insurance grouping. Cars which have been modified to improve their performance also sit in the higher groups, making them much more expensive to insure.
As a young driver, your dream muscle car therefore probably isn’t the best option if your priority is saving money on your car insurance. It pays to do your research, and pick a model of car which is cheaper to insure.
You probably have 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.
The five cheapest cars for young drivers to insure
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.
According to MoneySuperMarket data correct as of December 2018
Best insurance for young drivers
Everyone must have car 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 choices of riskier or convicted drivers looking to save money – obliging insurance companies to significantly raise the price of these policies.
In fact, if you are a young driver, a third-party only policy costs on average £1,110 more than the average fully comprehensive policy, according to MoneySuperMarket data from March 2019.
Consider the ‘telematics’ option
Whether you call it ‘black box’ or ‘telematics’ car insurance, 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 £151.25.
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.
According to MoneySuperMarket data correct as of March 2019
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 use 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 fully comprehensive premiums for young drivers, according to MoneySuperMarket data correct as of March 2019
Compare young drivers insurance with MoneySuperMarket
It is a good idea to compare car insurance quotes as a young driver, using MoneySuperMarket to help search through hundreds of competitive policies. If you are a young driver, we can 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 whether you have any convictions – for 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.