Why is car insurance for students so expensive?<\/h3><\/div>![\"Liz](\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2021\/07\/lizedwards_Finder_600x600.jpeg\")
<\/p>
Finder insurance expert Liz Edwards<\/a> answers <\/em><\/div><\/div>In simple terms, car insurance is typically more expensive for students because most students are young, and young drivers are considered a higher risk than older drivers. This is down to factors such as a lack of driving experience and the likelihood that they\u2019ll be involved in an accident. According to road safety charity Brake<\/a>, 1 in 5 drivers crash within a year of passing their test.<\/p>Even if you\u2019re a mature student, you may find that your premium is higher than you expect, as listing your occupation as \u201cstudent\u201d will put you in a high-risk category.<\/p>
As many universities are found in cities or other busy urban areas, student drivers are also at more risk of having their car stolen or damaged, which also contributes to higher insurance premiums.<\/p>
Don\u2019t be tempted to \u201cbend the truth\u201d about your main occupation or your address, though. If you deliberately provide false information, it may invalidate your policy, and the insurer may not pay out for any claims.<\/p><\/div><\/div><\/div><\/article>
What affects the cost of car insurance for students?<\/h3>
Where you live, the type of car you drive and your age are all key factors for insurers calculating your premium.<\/p>
Other factors that affect how much your car insurance costs include:<\/p>
- Where you live.<\/b> If you live in an area with a higher crime rate, you\u2019ll find that your premiums will be more expensive on average.<\/li>
- Your driving record.<\/b> If you\u2019ve got a history of poor driving, expect to pay more. But if you\u2019re a good driver, many insurers will reward this.<\/li>
- Where your car is parked.<\/b> Keep it in a secure garage and you\u2019re likely to have cheaper premiums than if you were to park it on the street.<\/li>
- Your payment frequency.<\/b> Some insurers will charge you extra if you choose to pay monthly as opposed to annually.<\/li>
- Your chosen excess.<\/b> If you opt for a higher excess, you can benefit from cheaper premiums. Just make sure you can afford it if you do need to make a claim.<\/li><\/ul>
Do I have to give my insurer my term-time student address?<\/h3>
It depends on where you will be keeping and driving the car most of the time. If you take your car to university or college with you, your car will be mainly kept at your student address, so this should be what you put on your car insurance policy \u2013 even if it increases your premiums.<\/p>
However, if you leave your car at your parents\u2019 place during term-time and only drive it when you\u2019re home for the holidays, you\u2019re probably fine to use your parents\u2019 address.<\/p>
If in doubt, contact the insurer to ask which address to use.<\/p>
How going to university could affect car insurance premiums<\/h3>
We gathered quotes for an 18 year old with a year of driving experience, driving a Vauxhall Corsa and putting in 5,000 miles a year.<\/p>
In our first scenario, our 18 year old works as a restaurant manager and lives with their parents in Berkshire. In the second scenario, they\u2019re an undergraduate student living in rented accommodation in east London.<\/p>
We also ran quotes for an 18 year old, east London-based restaurant manager, who was offered similar quotes to the London-based student. This suggests that location had the biggest impact on premiums in this comparison \u2013 an important consideration as many universities are based in cities, where premiums will tend to be higher.<\/p>Berkshire-based restaurant manager<\/h4>
Lowest quote = \u00a31,103<\/p>
- Offered 32 quotes in total<\/li>
- 13 of the 32 quotes, including lowest quote, were telematics policies<\/li>
- The cheapest non-telematics policy quote was \u00a32,302<\/li><\/ul><\/div>
London-based student<\/h4>
Lowest quote = \u00a32,420<\/p>
- Offered 20 quotes in total<\/li>
- 9 of the 20 quotes, including lowest quote, were telematics policies<\/li>
- The cheapest non-telematics policy quote was \u00a35,055<\/li><\/ul><\/div><\/div><\/div><\/article>
What are the different types of student car insurance?<\/h3>
No matter what your occupation is, there are 3 different types of car insurance available.<\/p>
To be on UK roads, all drivers are legally required to have at least third-party car insurance.<\/p>
- Third-party<\/a> (TP).<\/b> This is the most basic cover level and will cover you if you damage someone else\u2019s vehicle or property, or injure them while driving. However, it won\u2019t cover any damage to your car.<\/li>
- Third-party, fire and theft<\/a> (TPFT).<\/b> If you are responsible for causing an accident, you\u2019ll be protected for damage to other people\u2019s vehicles or property, or if they are injured. You\u2019ll also have protection against any fire damage or theft of your car.<\/li>
- Comprehensive<\/a>.<\/b> This is the highest level of cover and will provide the same protection as TPFT as well as insuring your vehicle against accidental damage and vandalism.<\/li><\/ul>
The cover levels available to young drivers can vary between insurance providers, so check your policy carefully to ensure you have the right level of cover.<\/p>
What level of cover is cheapest for students?<\/h3>
While you might assume that the most basic level of car insurance cover (third-party) will be the cheapest, this isn\u2019t always the case.<\/p>
It\u2019s always worth checking the cost of comprehensive cover, as it can be cheaper than third-party or third-party, fire and theft.<\/p>
What optional extras are available with student car insurance?<\/h3>
As a student driver, you\u2019ll have access to the same optional car insurance extras as anyone else. These include breakdown cover, legal expenses cover and windscreen cover. Bear in mind that the more extras you add, the higher your premium is likely to be. Read our guide on car insurance optional extras<\/a> to help decide if each add-on is worth it.<\/p>Can students get a discount on car insurance?<\/h3>
It\u2019s very unlikely; car insurers don\u2019t typically offer discounts for students. Insurers set premiums based on the risk profile of each individual. Unfortunately, students in their late teens or early 20s will usually be seen as a higher risk due to their relative lack of driving experience.<\/p>
But there are tactics you can use to cut the cost of student car insurance. These include adding yourself as a named driver for a parent\u2019s car that you drive occasionally, or considering \u201cblack box<\/a>\u201d insurance.<\/p>Are any types of car insurance cheaper?<\/h3>
There are a couple of alternatives to traditional car insurance that could help reduce costs.<\/p>
Telematics car insurance<\/h4>
Otherwise known as black box insurance<\/a>, this is where you agree to have a \u201cblack box\u201d recording device fitted into your car. This tracks your driving, such as what roads you drive on, how fast you drive and accelerate, and the times you drive, and sends the data back to your insurer.<\/p>- Pros<\/strong>: Careful driving is usually rewarded through lower premiums.<\/li>
- Cons<\/strong>: Poor driving habits could see your premiums rise.<\/li><\/ul>
Pay-as-you-go car insurance<\/h4>
This charges you a flat fee to cover your car against damage or theft while parked, plus a charge per mile or hour you drive. This is usually tracked using a black-box device.<\/p>
- Pros<\/strong>: May be a cheaper option if you don\u2019t drive frequently or far.<\/li>
- Cons<\/strong>: If you drive every day, or long distances, costs could clock up and work out more expensive than normal insurance.<\/li><\/ul>
What are the cheapest cars to insure for students?<\/h3>
Whether you\u2019re a student or not, some cars are cheaper to insure than others. But the high average cost of student car insurance means that the car you choose can make a bigger difference to your premium than for older drivers.<\/p>
The cheapest cars to insure are, as you\u2019d expect, typically cheaper to buy \u2013 and therefore to replace in the event of a write-off. Smaller, less powerful cars are also a good choice. Fast, powerful cars are statistically more likely to be involved in an accident.<\/p>
A good short-cut to working out whether a car will be cheap to insure is to check its car insurance group<\/a>, from 1 to 50. The lower the car insurance group, the lower the likely premiums.<\/p>Popular cars where most models fall into lower insurance groups include the Ford Ka, Toyota Yaris and Vauxhall Corsa. Just avoid higher-end performance or sports models.<\/p>
Can I get insured on a parent\u2019s car insurance policy?<\/h3>
Potentially, yes. If you\u2019re a student who occasionally drives your parent\u2019s car, such as during the holidays, you can ask them to add you to their insurance policy as a \u201cnamed driver\u201d. The downside for your parent is that adding you to their policy is likely to increase their premiums. That\u2019s because, as a young and less-experienced driver, their car insurer will see you as adding extra risk. However, it\u2019s likely to be less expensive for you to be added as a named driver than for you to take out your own policy to drive their car.<\/p>
However, importantly, if you are the person who drives the car the most overall, you should not put yourself down as a named driver on a parent\u2019s policy. This rule applies regardless of whether you or your parent owns the car. The main driver on a policy should be the person that drives the car the most. If that\u2019s you, but your parent is listed as the main driver, you\u2019ll be guilty of a criminal offence known as \u201cfronting\u201d.<\/p>
What is fronting and why do I need to avoid it?<\/h3>
Fronting is where you claim that a lower-risk driver, such as a parent, is the person that drives a car the most (the main driver on a car insurance policy), when really a higher-risk \u201cnamed driver\u201d on the policy, such as a young university student, uses the car more often.<\/p>
While it can be tempting to do this in a bid to keep premiums down, don\u2019t. It\u2019s a form of insurance fraud and a criminal offence. At the very least it\u2019s likely to invalidate your insurance policy and mean that any claims will be rejected. It could even result in you being prosecuted for fraud.<\/p>
How can I get cheaper student car insurance?<\/h3>- Buy a smaller, less expensive car.<\/strong> Choosing a modest car over a sports model or highly modified vehicle will save you money on insurance.<\/li>
- Don\u2019t claim unless absolutely necessary.<\/strong> It might save you money in the short term, but it will wipe out any no claims bonus<\/a> you may have and mark you as a risky driver, which increases your premiums.<\/li>
- Increase your excess.<\/strong> By agreeing to pay a higher excess, you can reduce the cost of your insurance premiums.<\/li>
- Don\u2019t list other young drivers on your policy.<\/strong> Restrict the number of people who can drive your car, and preferably limit it to those who are over 25, with the exception of yourself.<\/li>
- Consider adding a more experienced driver.<\/strong> Adding an older, more experienced driver as a policy \u201cnamed driver<\/a>\u201c, such as a parent, could reduce your premiums as they will be considered lower-risk by the insurer.<\/li>
- Improve your car\u2019s security.<\/strong> If possible, park in a garage instead of the street, and add security such as an alarm, tracking device or antitheft device for lower premiums.<\/li>
- Consider temporary car insurance. <\/strong> If you only drive occasionally, it may not be worth taking out annual cover.<\/li>
- Switch to telematics insurance.<\/strong> If you\u2019re a safe driver, consider a telematics insurance policy, where a black box<\/a> device is fitted to your car to measure driving performance. The better your driving, the cheaper your insurance.<\/li>
- Compare student car insurance providers. <\/strong> Always research a number of policies to find the best deal. Some insurers may even offer discounts or specialised cover for students. You can compare student car insurance from dozens of leading insurance providers by clicking the green button below.<\/li><\/ul>
<\/p>
In simple terms, car insurance is typically more expensive for students because most students are young, and young drivers are considered a higher risk than older drivers. This is down to factors such as a lack of driving experience and the likelihood that they\u2019ll be involved in an accident. According to road safety charity Brake<\/a>, 1 in 5 drivers crash within a year of passing their test.<\/p> Even if you\u2019re a mature student, you may find that your premium is higher than you expect, as listing your occupation as \u201cstudent\u201d will put you in a high-risk category.<\/p> As many universities are found in cities or other busy urban areas, student drivers are also at more risk of having their car stolen or damaged, which also contributes to higher insurance premiums.<\/p> Don\u2019t be tempted to \u201cbend the truth\u201d about your main occupation or your address, though. If you deliberately provide false information, it may invalidate your policy, and the insurer may not pay out for any claims.<\/p><\/div><\/div><\/div><\/article> Where you live, the type of car you drive and your age are all key factors for insurers calculating your premium.<\/p> Other factors that affect how much your car insurance costs include:<\/p> It depends on where you will be keeping and driving the car most of the time. If you take your car to university or college with you, your car will be mainly kept at your student address, so this should be what you put on your car insurance policy \u2013 even if it increases your premiums.<\/p> However, if you leave your car at your parents\u2019 place during term-time and only drive it when you\u2019re home for the holidays, you\u2019re probably fine to use your parents\u2019 address.<\/p> If in doubt, contact the insurer to ask which address to use.<\/p> We gathered quotes for an 18 year old with a year of driving experience, driving a Vauxhall Corsa and putting in 5,000 miles a year.<\/p> In our first scenario, our 18 year old works as a restaurant manager and lives with their parents in Berkshire. In the second scenario, they\u2019re an undergraduate student living in rented accommodation in east London.<\/p> We also ran quotes for an 18 year old, east London-based restaurant manager, who was offered similar quotes to the London-based student. This suggests that location had the biggest impact on premiums in this comparison \u2013 an important consideration as many universities are based in cities, where premiums will tend to be higher.<\/p> Lowest quote = \u00a31,103<\/p> Lowest quote = \u00a32,420<\/p> No matter what your occupation is, there are 3 different types of car insurance available.<\/p> To be on UK roads, all drivers are legally required to have at least third-party car insurance.<\/p> The cover levels available to young drivers can vary between insurance providers, so check your policy carefully to ensure you have the right level of cover.<\/p> While you might assume that the most basic level of car insurance cover (third-party) will be the cheapest, this isn\u2019t always the case.<\/p> It\u2019s always worth checking the cost of comprehensive cover, as it can be cheaper than third-party or third-party, fire and theft.<\/p> As a student driver, you\u2019ll have access to the same optional car insurance extras as anyone else. These include breakdown cover, legal expenses cover and windscreen cover. Bear in mind that the more extras you add, the higher your premium is likely to be. Read our guide on car insurance optional extras<\/a> to help decide if each add-on is worth it.<\/p> It\u2019s very unlikely; car insurers don\u2019t typically offer discounts for students. Insurers set premiums based on the risk profile of each individual. Unfortunately, students in their late teens or early 20s will usually be seen as a higher risk due to their relative lack of driving experience.<\/p> But there are tactics you can use to cut the cost of student car insurance. These include adding yourself as a named driver for a parent\u2019s car that you drive occasionally, or considering \u201cblack box<\/a>\u201d insurance.<\/p> There are a couple of alternatives to traditional car insurance that could help reduce costs.<\/p> Otherwise known as black box insurance<\/a>, this is where you agree to have a \u201cblack box\u201d recording device fitted into your car. This tracks your driving, such as what roads you drive on, how fast you drive and accelerate, and the times you drive, and sends the data back to your insurer.<\/p> This charges you a flat fee to cover your car against damage or theft while parked, plus a charge per mile or hour you drive. This is usually tracked using a black-box device.<\/p> Whether you\u2019re a student or not, some cars are cheaper to insure than others. But the high average cost of student car insurance means that the car you choose can make a bigger difference to your premium than for older drivers.<\/p> The cheapest cars to insure are, as you\u2019d expect, typically cheaper to buy \u2013 and therefore to replace in the event of a write-off. Smaller, less powerful cars are also a good choice. Fast, powerful cars are statistically more likely to be involved in an accident.<\/p> A good short-cut to working out whether a car will be cheap to insure is to check its car insurance group<\/a>, from 1 to 50. The lower the car insurance group, the lower the likely premiums.<\/p> Popular cars where most models fall into lower insurance groups include the Ford Ka, Toyota Yaris and Vauxhall Corsa. Just avoid higher-end performance or sports models.<\/p> Potentially, yes. If you\u2019re a student who occasionally drives your parent\u2019s car, such as during the holidays, you can ask them to add you to their insurance policy as a \u201cnamed driver\u201d. The downside for your parent is that adding you to their policy is likely to increase their premiums. That\u2019s because, as a young and less-experienced driver, their car insurer will see you as adding extra risk. However, it\u2019s likely to be less expensive for you to be added as a named driver than for you to take out your own policy to drive their car.<\/p> However, importantly, if you are the person who drives the car the most overall, you should not put yourself down as a named driver on a parent\u2019s policy. This rule applies regardless of whether you or your parent owns the car. The main driver on a policy should be the person that drives the car the most. If that\u2019s you, but your parent is listed as the main driver, you\u2019ll be guilty of a criminal offence known as \u201cfronting\u201d.<\/p> Fronting is where you claim that a lower-risk driver, such as a parent, is the person that drives a car the most (the main driver on a car insurance policy), when really a higher-risk \u201cnamed driver\u201d on the policy, such as a young university student, uses the car more often.<\/p> While it can be tempting to do this in a bid to keep premiums down, don\u2019t. It\u2019s a form of insurance fraud and a criminal offence. At the very least it\u2019s likely to invalidate your insurance policy and mean that any claims will be rejected. It could even result in you being prosecuted for fraud.<\/p>What affects the cost of car insurance for students?<\/h3>
Do I have to give my insurer my term-time student address?<\/h3>
How going to university could affect car insurance premiums<\/h3>
Berkshire-based restaurant manager<\/h4>
London-based student<\/h4>
What are the different types of student car insurance?<\/h3>
What level of cover is cheapest for students?<\/h3>
What optional extras are available with student car insurance?<\/h3>
Can students get a discount on car insurance?<\/h3>
Are any types of car insurance cheaper?<\/h3>
Telematics car insurance<\/h4>
Pay-as-you-go car insurance<\/h4>
What are the cheapest cars to insure for students?<\/h3>
Can I get insured on a parent\u2019s car insurance policy?<\/h3>
What is fronting and why do I need to avoid it?<\/h3>
How can I get cheaper student car insurance?<\/h3>