Savvy Britain

Young Drivers Car Insurance

Complete UK Guide For New Drivers

Young Drivers Car InsuranceAfter passing your driving test, it’s important to find the right young drivers car insurance for your needs.

One of the most exciting things a young person can do is learn to drive, after all it increase job opportunities, social opportunities and general freedom. No more riding the bus to college or work!

Unfortunately, young drivers aged between 17 and 24 have some of the highest premiums in the United Kingdom. This is because young drivers are regarded as high risk for insurers, they’re statistically more likely to be involved in an accident due to their inexperience and reputation.

Equally it’s not uncommon for newer drivers to lost their license. A Freedom of Information request to the DVLA in 2012 found 10,797 drivers with fewer than two years' experience lost their licences. More than half of those were found without insurance, with speeding the second most common cause. Many new drivers don’t realise that if you receive six or more points within the first two years of driving, you must re-sit the test. (Source )

Why Do Young Drivers Pay More for Car Insurance?

Historically younger drivers do pay more for their insurance, however over the last decade or so, they’re driving habits aren’t always the ‘worse age group’.

There’s around half a million 17- to 19-year-olds with full driving licences and they account for 1.6% of total number that holds a full licence. However, 22% of fatalities on British's roads in 2011 occurred in collisions involving a driver aged 17 to 24 years old. As you can see, technically younger drivers may amount for a small number of incidents when compared to the rest of the population. Though, when they do have an accident the chance of a fatality is much greater. (Source )

Inexperience - When applying for car insurance for a young driver, nearly all insurers will have the age of the driver as a ‘main ranking factor’. After all, driving experience is crucial when calculating premium costs. Typically, the more time you spend on the road the better your driving is likely to be.

Reputation - Unfortunately, young drivers do tend to have a bad reputation for causing more accidents. According to the Association of British Insurers, one in five young drivers will be involved in a crash within six months of passing their driving test.

Equally carrying passengers increases young drivers’ changes of being involved in a collision, with just three passengers almost tripling the chances of a crash. (Source )

This basically means insurance companies pay out more in claims for young drivers and so charge more for insurance policies in return.

Risk – Just like any form of insurance, Car insurance premiums are based on risk. Thus, how likely it is that an insurer will have to pay out on a claim. Most insurance providers will look at a young driver quote details before calculating a figure. This will generally include information such as the type of car, where they live, their driving experience, age, claims history and even their occupation. As younger drivers have more accidents and are generally involved with more car security issues, such as theft and vandalism. This is because crime rates are higher amongst young people. Therefore, as the risk is greater, this is reflected in the high price of premiums.

Car Insurance for Young Drivers – Great Money Saving Tips

  • Choose a Small Car – It can be a great idea to select a smaller car. A vehicle with a smaller engine is usually in a low insurance group. This means your potential premiums will be as low as possible if you’ve just recently passed. Equally a small engine car will also benefit from lower road tax.
  • New or Old – Whenever possible try to buy the newest car you can. It’s easy to purchase an older model thinking it will be cheaper to insurance. This isn’t always the case. Some insurance providers take the cars age into consideration when working out your car quote. Newer cars are typically considered ‘safer’ due to modern safety features and new parts. On the contrary, an older car may cost more to insure, as the more parts could need replacing and the safety features may not be in line with modern regulations.
  • Improve Security – If you’ve got a new car then it should be equipped with modern security measures.However, if your car is slightly older think about fitting an alarm or immobilisers. These security devices are designed to deter thieves. Installing a tracker could also make it easier for your car to be recovered and returned if it's been stolen, and it may reduce your premiums too. However, this will vary from different providers.
  • Avoid Modifications - It’s never really a ‘good idea’ to do any vehicle modifications. It doesn’t matter if you’re a new driver or have been driving for years. Sometimes people do it to improve performance or as a visual measure. However, it could dramatically increase the price that you pay for insurance. This is because ‘modified parts’ tend to be harder and more expensive to repair or replace.
  • Limit the Mileage - If you only drive at set times of the year (for example, term time) then you must let your insurance company know. Generally, it’s a good idea to avoid driving in rush hour as this can lower the risk of having an accident.
  • Use a Black Box – Telematics car insurance has been a popular choice for young drivers for a while now. It works with a ‘black box’ fitted into the vehicle or by a mobile phone app. It tracks and analyses the data, such as speed, location and so on. It’s a good idea to get the black box fitted, because most will also act as a vehicle tracker. Telematics insurance for young drivers is thought to be beneficial in the long run, particularly if new drivers are struggling to find competitive quotes.
  • Agree to a Curfew – This isn’t applicable to all insurance providers, but some may reduce your premium if you agree to limit your driving to certain times of the day. For example, not driving after seven o’clock at night.
  • Think about Pass Plus – For new drivers, the Pass Plus certificate can be beneficially, not only to the basic driving ability but potentially to insurance costs. Be aware that you'll need to pay for the course ‘up-front’ and you may not recoup the costs. This is because some insurance providers don’t recognise advanced driving certificates when calculating premiums.Click Here to learn more about advanced driving schemes in the UK.
  • Pay Yearly – This can apply to drivers from any age group, the general advice is to pay for your insurance when you take out the policy rather than by monthly instalments. Typically, you will save money over the cost of a year by paying in one instalment, for young people it can be a good idea if you’re attempting to avoid interest charges.
  • Shop Around – Don’t always take the first car quote you see. It’s always a good idea to shop around for quotes. This could be on insurance comparison websites, independent brokers or even calling insurers directly. At the end of the day, you need to get the correct policy at the right price.

Original Publication: 14 June 2017
Last Updated: 23 June 2017

Main Guide Types of Policy How to Save Money Senior Car Cover Young Drivers Insurance What Affects Premiums? Disabled Driver Insurance Advanced Driving Courses Telematics / Blackbox Cover Driving with a Medical Condition
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