New to the road? We’ll help you find an affordable car insurance policy if you’re a young driver.
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Car insurance for young drivers is expensive because young motorists are considered statistically riskier drivers by insurers. The average annual amount a young driver aged 17 to 24 is likely to pay for cover is £1103 according to MoneySuperMarket data (January – March 2017).
Here are some of the cheapest cars to insure for drivers under 25:
- Suzuki Splash: average annual price £635.85
- Fiat Panda: average annual price £663.03
- Vauxhall Agila: average annual price £667.71
- Renault Modus: average annual price £670.58
- Suzuki Alto: average annual price £677.16
- Citroen c1: average annual price £677.77
- Skoda Fabia: average annual price £684.99
- Volkswagen Fox: average annual price £705.78
- Toyota Aygo: average annual price £706.28
- Fiat 500: average annual price £708.97
Data collated between July 2016 – Dec 2016, 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.
Also, some insurers may refuse cover altogether based on the following grounds:
- Vehicle of choice is too costly.
- Vehicle specification is too high.
- Too many modifications have been made.
- Vehicle engine is too powerful.
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.
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.
Cutting car insurance costs
The good news, is that there are a number of ways for younger drivers to cut the cost of car insurance.
- Run a price comparison quote. By using our comparison tool you can instantly compare car insurance 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 Pass Plus.
- 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’.
- Pay upfront. 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 for yourself.