Young Driver Insurance
Young drivers – those under 25 years of age – often pay more for car insurance. And it all comes down to insurers viewing them as more likely to cause or be in an accident. To help you better understand young driver car insurance, in this guide we’ll explain your car insurance options and how to find the best insurance for young drivers.
What is young driver insurance?
Young driver car insurance is insurance for drivers aged between 17 and 24. There isn’t a separate car insurance product for young drivers. But as younger drivers are viewed as a higher risk by insurance companies, anyone under 25 years of age usually pays a premium for their car insurance.
Just because young driver insurance is typically more expensive, it doesn’t mean there aren’t steps you can take to lower it and find cheap young driver insurance.
Why is young driver insurance so expensive?
More often than not, younger drivers pay more for their car insurance. Currently, the average price for car insurance for drivers aged 17 to 24 is £2,156.50 a year*.
*Based on premiums sold in September 2024. Car insurance comparison service is provided by Vast Visibility Limited.
The reason you pay more for car insurance when you’re younger is because young drivers are involved in, and cause, more car accidents. This means that insurance providers view you as a higher insurance risk. In reality, you might be a safe and competent driver – and this might be unfair – but car insurance companies base their risk profiles on statistics. And the statistics say on average that drivers under 25 are more likely to make an insurance claim.
How can I get cheaper insurance as a young driver?
If you’re a driver aged between 17 and 24 years of age, you will likely pay more for your car insurance. But that doesn’t mean there aren’t things you can do to lower the costs. To find the cheapest car insurance for young drivers, you should:
- Drive a smaller car: Smaller cars with lower-powered engines, and that are less expensive, fall in lower insurance groups. This makes them cheaper to insure.
- Agree to drive less: The less you drive, the cheaper your young driver insurance can be. If you agree to a lower annual mileage – such as less than 5,000 miles a year – you might be offered a cheaper insurance policy.
- Pay annually: You’ll typically pay less if you pay your insurance policy up-front in one annual payment, rather than in monthly instalments. This means there will be no additional interest payments or fees.
- Add an experienced driver to your policy: Adding another named driver to your insurance could lower the cost, especially when that driver is older and has a no-claims bonus. Ask your parents or family members if they’d be willing to do so. Just remember, this person will have to genuinely drive your car. Giving false information about who will drive your car is called ‘fronting’, and is a kind of fraud that can invalidate your insurance policy.
- Build your no-claims discount by driving carefully: Whilst this can take a few years, building up your no-claims bonus is an effective way to prove that you’re a safe driver and a proven way to lower your premiums.
- Volunteer to pay a higher excess: The excess is how much you’ll pay when you make a claim on your insurance. If you agree to pay a higher excess, your premium will typically be lowered.
- Choose a black box insurance policy: Also called a telematics policy, with black box car insurance a device is installed in your car that monitors how well you drive (although some insurers now use an app on your mobile phone). If you drive safely with a black box in your car, it can lower the cost of your future premiums.
- Improve your security: The more steps you take to keep your car safe, the lower the risk it could be stolen or vandalised. Park your car in a secure off-road location – like a locked garage – if you can. Also use security items like an immobiliser and a tracker.
- Consider taking the Pass Plus driving qualification: As this can help lower your premium by showing you’re committed to being a safe and informed driver.
- Shop around: You’ll have a better chance of finding cheaper young driver insurance if you compare insurance quotes from a wide range of insurance providers. You can do so through Asda Money.
The car insurance comparison service is provided by Vast Visibility Limited.
Find out more about how car insurance premiums are calculated and how you can save money on your car insurance.
What cars are the cheapest to insure for young drivers?
Smaller, lower-powered, less expensive cars are typically cheaper to insure for young drivers as they belong to a lower car insurance group.
The cheapest cars are Group 1 vehicles, which are usually small hatchbacks with small engines. City cars like the Fiat 500, Volkswagen up!, Skoda Citigo and Hyundai i10 are all Group 1 cars.
Types of insurance for young drivers
Just as with standard car insurance, there are three levels of cover to choose from when it comes to young driver insurance:
- Third-party insurance: Covers you for the cost of third-party claims made against you if you cause an accident. This includes the cost of repairing the other person’s car, replacing damaged property or paying for medical costs.
- Third-party fire and theft insurance: Covers you for third-party claims made against you but also for any damage or losses you suffer due to fire or theft.
- Comprehensive insurance: Covers you for third-party claims made against you. Plus compensation for any damage or losses to your car or property, even if you were at fault for an accident.
As well as the three levels of insurance cover, you have other options when it comes to young driver insurance. These include:
- Named driver: Taking out insurance with a parent or guardian who has no driving convictions and a no-claims bonus can help lower the cost of your car insurance. You’ll need to be honest about who’ll be driving the car.
- Black box insurance: Involves installing a black box device into your car that monitors how you drive. If you’re shown to be a safe driver, black box insurance can result in lower insurance premiums.
- Learner driver insurance: If you have a provisional UK driving licence, this provides cover whilst you’re learning to drive, including when you’re driving outside of lessons.
Compare young driver insurance quotes through Asda Money
Through Asda Money, you can compare insurance quotes from over 60 of the UK’s top insurance providers to find the right policy for you. The car insurance comparison service is provided by Vast Visibility Limited.
Young driver insurance FAQs
- What insurance is cheapest for young drivers?
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A range of factors will determine the cost of your car insurance, including your age, driving history and your car. Different car insurance providers will offer you different prices, so you should compare quotes to find the cheapest car insurance for young drivers.
- What car is best for young driver’s insurance?
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Smaller cars with lower-powered engines – such as small hatchbacks and city cars – are typically the cheapest to insure for all drivers.
- How much does a black box reduce insurance?
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Black box insurance won’t necessarily make your car insurance cheaper. If you drive safely and sensibly, your future premiums may be lower. But if you don’t drive carefully, your insurance could even go up.
- Which insurance group is the cheapest?
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Cars in insurance Group 1 are typically the cheapest to insure for young drivers. Group 1 cars are small hatchbacks usually known as city cars, like the Hyundai i10, Fiat 500, Toyota Aygo X, Volkswagen up!, Kia Picanto and MINI Electric.
- At what age does car insurance go down in the UK?
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Car insurance is typically most expensive for drivers between 17 and 24 years old. It usually drops when you’re 25 and older.
- Are newer cars cheaper to insure for young drivers?
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A range of factors will influence the cost of your car insurance, including your age, where you live and what kind of car you want to insure. Driving a newer car may be cheaper to insure than an older one – especially if it is small, low-powered and has modern safety and security features.