Cheapest car insurance for new drivers

As someone new to driving, insurance companies will hit you with higher premiums. That’s because you’re seen as being more likely to have an accident and make a claim. However, there are ways to find discounts and policies that can lower your insurance costs, while giving you the cover you need. Read on to find out how to get the cheapest car insurance for new drivers.

What is new driver car insurance?

There are no special policies that are only available to new drivers, and of course you can pass your test and become a “new driver” at any age. But when many insurers refer to new drivers, they’re often thinking about young drivers (between the ages of 17 and 24, say) who have only recently passed their test and are therefore less experienced drivers.

Why is new driver insurance so expensive?

There are a couple of factors that drive up the cost of new driver insurance.

Firstly, official statistics show that young, inexperienced drivers are more likely to be involved in an accident, and therefore to make a claim. Insurers bump up premiums to account for a new driver’s greater likelihood of needing to make a payout.

Secondly, new drivers won’t have had a chance to build up any years of no-claim driving that prove they’re safer drivers than the age-related statistics might suggest. This means they won’t qualify for a no-claim discount.

How much does new driver insurance cost?

It’s difficult to give a categorical answer to this, as the cost of car insurance is heavily influenced by age, and you can become a new driver at any age.

What we can tell you is that, on average, young drivers (under 25) pay significantly more for their insurance than over 25s. This will at least be partly due to their lack of driving experience, which can result in a higher statistical chance of younger drivers being involved in an accident and needing to make a claim.

For example, someone that passed their test as soon as possible at age 17, and who wanted to insure a car in insurance groups 1-10, would face an average annual premium of £2,142, according to Finder data.

A 21-year-old insuring an equivalent car would pay a lower, but still pricey, average premium of £1,563.

• How we got these rates

  Source: Quotezone. Correct as of March 2021. We gathered quotes for people aged 17 to 90 in each of the 50 insurance groups, across 3 different postcodes – a cheap, average and expensive address.

What affects the cost of new driver car insurance?

There are a number of things that can make car insurance more expensive for one new driver than another. These can include:

• Age – unfair as it may seem, older newly qualified drivers are likely to pay less than those that pass their test in their teens.
• Car make and model.
• Where you live.
• Average yearly mileage; more miles typically equate to higher premiums.

What type of insurance is best for a new driver?

As with any driver, new drivers can choose between 3 levels of cover. These are third-party cover, third-party, fire and theft cover, and fully comprehensive cover.

Logic should dictate that third party insurance is the cheapest type of policy. This is the most basic type of deal on offer and it’s the minimum level of cover you need to legally drive in the UK.

It pays out for any damage you cause to someone else’s vehicle or property. Unlike comprehensive cover, it won’t offer any financial help should your car need repairs or replacing.

However, insurance companies have clocked that younger and less experienced drivers are the main buyers of this type of policy. As a result, many insurers don’t necessarily offer cheaper premiums for third-party cover.

It’s definitely worth getting quotes for third party, fire and theft and comprehensive insurance too. These might work out cheaper and offer you higher levels of protection to boot.

What other insurance options are there for a new driver?

If the cost of buying a traditional, annual car insurance policy makes your eyes water, there are alternatives worth taking a look at. Whether they’re right for you will depend on whether you own your own car and how often you plan to drive.

• Black box car insurance. This tracks how well you drive using a small device or “black box” installed in your car and adjusts your premium accordingly.
• Pay-as-you-go car insurance. These policies charge you according to how much you drive. You pay a basic set rate each month or year, plus a small additional charge for each mile or hour of driving. Your insurer will usually use a black box device to record the data.
• Named-driver car insurance. If you’ll be driving a parent’s or sibling’s car, rather than your own, you can ask them to add you to their policy as a named driver. You can only do this if you aren’t the main driver of the car though.
• Temporary car insurance. If you only get behind the wheel occasionally – at weekends, or during university holidays, for example – a policy that covers you every day for a full year may not be worth it. Temporary policies can insure you for a few days or weeks at a time.

Can “black box” car insurance save new drivers money?

Potentially, yes. This is dependent on you driving carefully and safely, though.

Black box insurance is designed to give good drivers cheaper car insurance. Its official name is telematics insurance. A small device is fitted to your car that records your driving performance and sends these details back to your insurer.

Safe, careful driving will be rewarded with lower premiums over time. But watch out; bad habits such as speeding will see your premium shoot up.

How long are you considered a new driver?

There’s no fixed definition across insurers of how long they’ll consider someone to be a “new driver” after they’ve passed their test. But once you’ve gained a year or 2 of driving experience and started to build up an insurance no-claim bonus, you should see your premiums start to drop.

This may happen faster if you passed your test when you were older, as in general, drivers aged under 25 pay higher premiums than older drivers.

Will adding another driver to my policy reduce the cost?



Finder insurance expert Danny Butler answers

Just as a new driver can add themselves to a parent’s policy, if you have your own car (and therefore need your own insurance), you can add another driver to your policy as a named driver.

Whether this will save you money depends on the driver in question. But generally, adding an older, more experienced driver is likely to reduce a new driver’s car insurance premium.

That’s because insurers regard experienced drivers as lower-risk. If an insurer thinks that your car will be driven by a low-risk driver some of the time, it is likely to reduce the premium accordingly.

One word of warning: If you’re the person that will be driving the car the most, don’t be tempted to put a parent or another experienced driver as the main driver and add yourself as a named driver. This is a form of insurance fraud known as fronting.

What can new drivers do to save on their insurance?

Car insurance can be a major drain on young drivers’ wallets. While you might see yourself as a responsible road-user, insurance companies will see you as being a higher risk. That’s because younger drivers are statistically more likely to be involved in a collision.

But there are ways to get a decent deal on car insurance as a young driver. These include:

• Buy a lower-risk car. Cheaper, less-powerful cars are more likely to fall into a lower car insurance group, which typically means lower insurance premiums.
• Avoid paying in instalments. Insurers often charge interest on monthly instalments, which means higher costs. If you can, paying an annual lump-sum will save money.
• Opt for a higher excess. When you make a claim you generally have to pay a certain amount (an excess) before the insurer starts contributing. Agreeing to a higher excess can lower your premium, though make sure you don’t opt for such a high excess that you can’t afford it if you need to claim.
• Add an experienced named driver. Adding an older or more experienced driver to your policy if they use your car occasionally can lower costs.
• Consider a telematics policy. Having a black box in your car which monitors your speed, distance travelled and the times you drive can lower costs. Bear in mind that it can raise them too if you fall into bad driving habits.
• Build a safe driving record. Drive responsibly and avoid making any claims, and you will start to earn a no claim discount after a few years.
• Get an additional driving qualification. Taking an advanced driving course might convince the insurance company that you’re safer on the roads and provide you with a cheaper premium.
• Park in a secure location and up your car’s security. Leaving your car in a garage overnight, if possible, can make insurance much cheaper, as can installing antitheft or other security features in the car.
• Don’t blindly auto-renew. Car insurance companies often don’t reward loyalty. Each year you should compare car insurance quotes and shop around, it could save you hundreds of pounds. Particularly if you’ve had a change in your personal details, such as getting married for instance.

Bottom line

As a new driver, insurers consider you more of a risk than experienced drivers. But this doesn’t mean you should pay over the odds for car insurance.

Even though you might not have a lot of experience on the road, you may be a safe and careful driver. If so, choosing a telematics insurance policy could help to lower your premium.

As any driver should, before deciding on a policy, do your research and compare the deals on offer.

Frequently asked questions

• Do I have to get car insurance as a new driver?

  Yes. To drive legally in the UK, you must have a basic third-party insurance policy.

• Can I get insured on a parent's car insurance policy?

  When the main driver of a car adds another driver to their policy, they are known as a “named driver”. If, as a new driver, you’ll be driving your parent’s car rather than your own, you can ask them to add you to their policy. This is likely to bump up your parent’s premium due to the additional risk you pose as an inexperienced driver. However, there’s a good chance it’ll be cheaper than you taking out a standalone policy.

• Can new drivers get day insurance?

  Usually, yes. Day insurance is a form of temporary car insurance. This lets you insure yourself on a car for as little as a day, usually up to around a month. It can be a good option if you only need to borrow someone’s car every now and then. Bear in mind that you won’t be able to earn a no-claim bonus on temporary policies. In addition, many insurers have minimum age limits (over 18, for example). Some will also require you to have passed your test at least 6 months or a year ago.

• Is it better to pay for my car insurance monthly or annually?

  If you can afford to pay the lump sum, then paying your premium annually will work out cheaper. That’s because insurers add interest to your monthly payments. However, paying monthly can help you spread the costs if you can’t afford to pay the full premium up-front.

• What extras can I add to my car insurance as a new driver?

  If you take out your own, annual insurance policy, you’ll be able to buy the same optional extras as any other driver.

  Add-ons that you might want to consider include:

  • Windscreen cover – to cover the cost of repairing or replacing a chipped or cracked windscreen.
  • Courtesy car cover – provides a replacement car while yours is in for repairs following an accident.
  • Key cover – in case you lose your keys or key fob, or they’re stolen.
  • Breakdown cover – to rescue you if your car breaks down.

  Some insurance policies may include cover for some of these as standard, so when you’re comparing policies double check and make sure you’re comparing like for like.

• Can I drive other cars on my insurance policy?

  It depends on the specific policy. Some, but not all, comprehensive policies entitle you to drive someone else’s car on a third-party basis. You typically won’t be able to drive other cars if your main insurance is third-party or third-party, fire and theft.

• Will an advanced driving course make my insurance cheaper?

  It’s possible, but not guaranteed. Advanced driving courses such as Pass Plus are intended to help new drivers boost their experience and improve their skills. Some insurers will ask about these courses as part of the quote process, and may give you a discount if you’ve taken one. Bear in mind that the saving may not be enough to cover the cost of taking the course in the first place though.

• How much will my insurance go down after 1 year of no claims?

  How long is a piece of string? While insurers reward claim-free driving through a no-claim bonus, every insurer’s discount works differently, so it’s almost impossible to generalise how much your premium will decrease by after a year.

  One thing that’s certain is that the cheapest insurer for a brand new driver may not be the cheapest insurer after a year of claim-free driving. Don’t assume that staying loyal will be the best option. As you approach your first renewal, use a price comparison site such as Finder to shop around for the best deal.

• What is fronting?

  “Fronting” is when an older, more experienced driver claims to be the main driver of a car when in fact, a younger, less experienced driver is. The main driver of a car is regarded as the person that drives the car most often. Anyone that drives the car less often can be added as a named driver.

  Fronting is a form of insurance fraud and is illegal in the UK. It is likely to result in any insurance claim being invalid, and could mean your policy is cancelled entirely. You could also be fined, and even face a criminal conviction.