Car insurance for 17-year-olds

So you’ve passed your test and are free to get behind the wheel without supervision. Time to celebrate! That is, until you try to get car insurance and do a double-take at just how much it costs. Car insurance tends to be very expensive for 17-year-olds, especially when you consider that many are still in education and not earning a full-time income. This guide explains what car insurance is available to 17-year-olds and how they can find the best policy for their needs.

Why is car insurance more expensive for 17-year-olds?

Well, we hate to say it, but younger and less experienced drivers are simply more likely to be involved in an accident and to make a claim. Official stats prove it. Department for Transport figures, for example, show that 17-20 year old drivers make up a disproportionately high number of road traffic casualties (11%) compared with most other age groups.

Car insurance companies will calculate a new customer’s premium based on the risk of someone in their demographic making a claim on their policy, among other things, so insurers charge them far more to compensate for this.

What types of insurance are available to 17-year-olds?

Technically, 17-year-olds can purchase the same types of insurance as any other motorist: comprehensive, third-party fire and theft or third-party only.

Comprehensive insurance offers the deepest level of protection. And, contrary to what you might expect, it may not be the most expensive type. So it’s worth checking the cost of all types of insurance.

With some insurers, younger drivers may be able to opt for a “black-box” policy. This allows insurers to track your driving activity and (hopefully) prove that you are a safe driver. If you can do this, you’ll often be able to get discounts on your premium.

Cheapest cars to insure for a 17-year-old

Average car insurance cost for a 17-year-old

To give you an idea of the average cost of car insurance for a 17-year-old, we ran several quotes using a popular make and model for a 17-year-old and an average UK postcode. Based on our results, on average, you could get a comprehensive car insurance policy for an annual sum of £2049.32.

• How we got this rate

  To generate these quotes, we used the following information:

  • Ford Fiesta 1.1 Trend 5dr 85 PBS
  • The vehicle is a 2019 model
  • Manual transmission
  • Petrol
  • 1.1-litre engine
  • Driver pays £200-£600 excess
  • Driver is 17 years of age
  • Driver has less than two years no claims bonus
  • Driver has no driving convictions
  • Driver lives in Chester (which our research suggests is an average postcode in regards to cost

Average insurance cost for a 17-year-old by location

The table above shows the cheapest cars to insure for 17-year-olds and the average insurance premium for each make and model. However, there are a number of other factors that affect the cost of your car insurance premiums, one of the biggest being your location.

To show the power of the postcode, here are some average quotes for a 17-year-old living in three different locations. The quotes are for a Hyundai i10 S 5d Model.

• Cheap: £1512 (Truro, TR8)
• Average: 1855.46 (Chester, CH1)
• Expensive: 2271 (London, E10)

As you can see above, there is a great degree of cost variability between each location due to factors such as the likelihood of theft, historic claims data in the area and road traffic data. For example, the driver who lives in London will pay an extra £759 per year when compared to the driver who lives in Truro.

• How we got these rates

  These rates are based on the average cost of cover for cars in the locations shown. Our research suggests E10 is one of the most expensive locations, CH1 represents an average cost location and TR8 represents one of the cheapest locations. Updated: March 2021 (source: Quotezone).

Case study: finding the cheapest car insurance for a 17-year-old

Holly, our fictional 17-year-old, has held her licence for 5 months. She’s been driving her parents’ shared car as a named driver since she passed her test, but wants the freedom and flexibility that owning her own car will give her, so is thinking of investing in a second-hand VW Golf SE hatchback.

Holly’s keen to get the cheapest car insurance she can, so decides to try out a few options. She starts off by getting quotes with a leading price comparison site, plus Direct Line, which isn’t on price comparison sites.

When the price comparison site results come up she gets a bit of a shock. Some of the top five quotes all come in at more than £3,000, with the cheapest being £2,255 if she pays annually.

Can going direct save Holly money?

Sadly Direct Line isn’t any cheaper. Its standard comprehensive policy would set her back an eye-watering £4,282, while the provider’s black box policy would cost £3,094, so she rapidly rules this option out.

What about adding an experienced named driver?

Desperately searching for ways to cut the cost of cover, she asks her 50-year-old dad if he’d be interested in driving her car occasionally, so she can add him as a named driver. He likes the idea and has a clean driving record with plenty of no-claims years, so she tries adding him on as named driver on the price comparison site.

She’s pleased to find that this knocks more than £200 off the cost of insurance via the price comparison site, with the cheapest quote now coming in at £2,029.

Is it worth considering a different car?

Finally, Holly notices that her car of choice – a VW Golf SE – is in insurance group 11 out of 50. It’s not the most expensive insurance group, but nor is it the cheapest. She reconsiders and checks the price for a VW Polo SE instead, which is in insurance group 8. This puts her cheapest quote at £1,598, so she decides this is a trade-off worth making.

• How we got this rate

  To generate these quotes, we used the following information:

  • Quotes gathered in March 2023
  • The vehicle is a 2019 model
  • Manual transmission
  • Petrol
  • £250 voluntary excess
  • Driver is 17 years of age
  • Driver doesn’t have any no claims bonus
  • Driver has no driving convictions
  • Driver lives in Berkshire

What other costs are involved in getting your first car?

As well as paying for their car insurance, new drivers will need to make sure they have the money available to cover a bunch of other costs. They all add up, soo make sure you do your budgeting carefully before shelling out for your own car.

• Fuel. As a new driver, it’s easy to underestimate the cost of keeping the tank full, or an electric engine powered up.
• Car tax. This annual bill, also known as vehicle excise duty, is paid to the government. The amount you’ll pay is based on your choice of vehicle, its emissions and when it was registered.
• MOT. If a car is more than three years old, you’ll need to pay for an MOT test every year to make sure it meets the minimum legal standards for road safety and environmental friendliness.
• Servicing and maintenance. You’ll have to pay for the cost of repairs of maintenance as a vehicle ages. An MOT test will identify what crucial maintenance jobs are required.
• Repairs. If your car needs repairs following an incident, you can make a claim on your insurance, in which case your provider will pay for it. However, this will impact your no-claims bonus, so you might prefer to cover the costs of cheaper repairs by yourself. And bear in mind that wear and tear won’t be covered. Touching up minor scratches caused by gritty roads or dealing with rust patches will typically come out of your own pocket.

How can 17 year-olds save on their car insurance?

• Choose a cheaper car. Insurers will consider how much a car costs to repair when calculating your premium. When you choose a cheaper car, you’ll pay less to insure it. Scroll up to see our list of cheapest cars to insure.
• Add a named driver. If you add a more experienced driver onto your policy, insurers will often reduce your premium.
• Take your “Pass Plus” course. This course teaches newly-qualified motorists how to handle some more advanced aspects of driving, such as driving at night or on the motorway. You’ll get a certificate for completing the course, and some insurers will offer a discount to younger drivers who have this.
• Add a black box. A telematics box will track your driving activity and prove to your insurer that you’re a safe driver. Black box insurers will offer you a discount if you agree to this. Assuming, of course, that you drive safely. Careless driving could have the opposite effect. .
• Increase your voluntary excess. Most insurers will cut your premium if you agree to cover more of your insurer’s potential costs with a larger excess. Make sure you don’t set it so high that you can’t afford to pay it following an incident, though.
• Add additional safety measures. When you install extra safety measures – such as an alarm or immobiliser – to your vehicle, you reduce the likelihood of making a claim. For that reason, most insurers are happy to reduce your premium when you do it.
• Avoid unnecessary modifications. Modifications such as a spoiler or an expensive sound system can send your premium skyrocketing because your insurer will factor in the cost of replacing these luxury items.

The bottom line

Car insurance can be a huge expense for 17-year-olds, but there are a number of actions you can take to reduce the costs. From choosing a vehicle in a low insurance group to installing a telematics device, there are options out there for first-time drivers.

As always, it’s important to compare quotes to find a provider that suits the level of cover you need and falls within your budget.

Frequently asked questions

• Will my gender affect the cost of my car insurance

  In 2012, the European Union forbid insurance companies from discriminating on their customers by gender. Following Brexit, the UK is free to ignore these rules, but they remain in place at the time of writing.

• Is it worth going for a black box policy as a 17-year-old driver?

  It’s certainly worth investigating. Black box, or telematics, policies involve installing a small device in your car to monitor your driving. Safe, careful driving is typically rewarded with discounts, either at renewal or, in some cases, part way through a policy. Be warned, though. Reckless driving could have the opposite effect.

• Are there specialist insurers for 17-year-olds?

  Yes. A number of insurers or brokers claim to specialise in car insurance for younger drivers, including 17-year-olds. Some feature on price comparison sites, so will appear in your search results. Others, especially brokers, don’t, and you may have to call them to get a quote rather than buying online. It’s worth looking into though, especially if you’re struggling to find affordable cover from other insurers.

• Do I need to change my insurer when I pass my driving test?

  Possibly, yes. At very least you’ll almost certainly need to change your policy, as learner-driver car insurance policies typically become invalid once you pass your test. You may be able to take out a standard insurance policy with the same provider, but it’s worth shopping around for the cheapest insurance regardless, because the best provider for you as a learner may not be the best once you’ve passed your test.

• When does insurance start to get cheaper?

  It depends on a number of factors, but you should be able to find a cheaper deal after one year of making no claims on your policy. According to research by the Association of British Insurers, on average young drivers should see premiums start to drop more substantially once you they turn 21, though the lowest premiums are reserved for those in their 50s and 60s.

• Can my parents help me get cheaper car insurance?

  Yes, by adding more experienced drivers (such as your parents) onto your policy as named drivers, you can often reduce the cost of your premium.

• Are older cars cheaper to insure for a 17-year-old?

  Insurers will consider the cost of repairing a vehicle, not its age. However, older cars do tend to be cheaper to insure because they are usually cheaper to repair.

• Do all insurance companies insure 17-year-olds?

  You’ll find plenty of insurers willing to cover you at age 17, but insurance companies are free to set their own age limits for their customers.