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How can younger drivers get cheaper car insurance?

Insurance Questions Answered: 

I’m a young driver aged under 25, how can I make my car insurance cheaper?

Car insurance for young drivers tends to be more expensive, with the average premium £865 for drivers under 25, but there is reason behind the higher premiums. Drivers aged 17-24 only make up 7 per cent of UK licence holders and drive fewer miles than the average, but are involved in 24 per cent of all fatal collisions.

However, there are ways of reducing the cost of car insurance for new drivers through safe vehicle and driving choices. Some of the ways that you can make your insurance more affordable are:

1. Picking the right car

The more powerful your car is, the more likely it is to be involved in an accident. As a rule of thumb, the greater your engine size, the higher the insurance cost. The value of your car will also impact on your premium – if it’s more expensive to replace or repair, the premium is likely to increase.

2. Shop around

The UK’s motor insurance market is fiercely competitive, so it always pays to shop around to find the best price. As well as checking price comparison sites for the best motor policy, it’s also worthwhile to get a quote directly from an insurer or get in touch with an insurance broker.

As with any insurance, it’s just as important to choose a policy that fits your needs as well as your price point. Remember, car insurance is here to give you peace of mind, so there’s no point in buying a policy that doesn’t cover everything you need.

3. Drive safely

Ensuring you drive safely is a guaranteed way of keeping costs to a minimum in the long term. If you have no accidents you’ll build up a no claims discount (NCD), which will help keep costs low in the future. Penalty points on your licence can also negatively impact your premium so don’t speed, get behind the steering wheel after having one too many or use your mobile phone while driving.

4. ‘Black Box’

To demonstrate your safe driving, you might want to consider a 'black box' insurance policy, also known as a telematics policy. This uses a device installed in the car to measure how a car is being driven. These policies can help cut the cost of insurance if you are a safer driver.

5. Be financially savvy

Paying a higher excess is another way that could lower your car insurance costs. As a young driver, you may already have a higher compulsory excess than someone who has been driving for a while. In addition to your compulsory excess, you can set a voluntary excess.

Remember that you’ll have to pay both the compulsory and voluntary excess if you make a claim. If you choose a higher voluntary excess, your premium may go down, but always make sure to choose an amount you can afford to pay if you do need to make a claim.

6. Secure your car

Adding extra security features, such as an alarm or an immobiliser, may help reduce your premium and deter thieves. Keeping your car in a garage or car park may also reduce your premiums as it’s more vulnerable to theft if parked on the street.

7. But steer clear of modifications

Any changes to your car that aren’t safety-related are likely to increase the cost of insurance.

8. Never lie

Even just making a few ‘tweaks’, such as saying your car is kept on a driveway when it is actually kept on the road, can be considered to be insurance fraud. And while adding an experienced driver can result in cheaper insurance, you should never add them as the main driver unless they actually are the main driver. If you lie to your insurer, you risk invalidating your insurance and a criminal prosecution – and as a proven fraudster, you may struggle to get cheap insurance in the future.

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Last updated 09/11/2018