Car Insurance for Young Drivers: Everything You Need to Know About Car Insurance for 17-24 Year Olds

What is Young Driver Insurance? 

Young driver insurance is a specialised car insurance for individuals aged 17 to 24.  

This demographic often faces higher insurance premiums due to statistical risk factors associated with less driving experience. According to data, drivers aged 17-24 are more likely to be involved in accidents, leading to higher insurance costs.    

Young driver insurance covers personal and third-party liabilities, ensuring legal compliance and financial protection.   

What Cover is Available for Young Drivers?   

There are multiple coverage options available for young drivers, including:   

• Third-Party Only (TPO): This basic level of coverage meets the legal requirement and covers damage to other vehicles in the event of an accident. However, it does not cover damage to your car.   
• Third-Party, Fire, and Theft: This option protects against fire damage and vehicle theft in addition to third-party coverage.   
• Comprehensive Cover: Offering the highest level of protection, comprehensive insurance covers damage to your vehicle, third-party liabilities, theft, and fire damage. It’s the most extensive coverage option. 

Can I Get Additional Insurance Cover as a Young Driver?  

Young drivers can often purchase additional coverage to enhance their insurance policies. Some common additional cover options include:   

• Breakdown Cover: Provides roadside assistance and recovery services in case of a breakdown.   
• Legal Expenses Cover: Legal fees are covered in the event of a dispute related to your car insurance policy.   
• Personal Accident Cover: Provides financial compensation for injuries sustained in a car accident.   

These additional covers can provide added protection beyond standard insurance policies.   

What Type of Insurance Do Young Drivers Need?

Choosing the right type of insurance is crucial for young drivers to ensure adequate coverage while managing costs effectively.    

Here’s a breakdown of the types of insurance young drivers typically need:   

• Comprehensive Insurance: This provides the highest level of coverage and protects against a wide range of risks, including damage to your vehicle, theft, and third-party liability. While comprehensive insurance offers the most protection, it’s often the most expensive option.   
• Third-Party, Fire and Theft Insurance: This type of insurance covers damage to third-party vehicles and property as well as your car if it’s stolen or damaged by fire. It’s a middle-ground option that provides essential coverage at a more affordable price compared to comprehensive insurance.   
• Third-Party Only Insurance: This is the most basic level of coverage required by law in the UK. It covers damage to third-party vehicles and property but doesn’t cover damage to your car. Third-party-only insurance is typically the cheapest option but offers the least protection.   

When determining the type of insurance to purchase, young drivers should consider their budget, vehicle value, and risk tolerance.    

How Much Does Young Driver Insurance Cost?

Young driver insurance costs vary depending on several factors, including age, driving experience, vehicle type, and location.    

According to MoneySuperMarket data, the average annual premium for young drivers aged 17-24 is around £1,348. However, individual premiums vary significantly based on personal circumstances and insurance providers.   

Are There Ways to Make Young Driver Insurance Cheaper?   

As a young driver, finding affordable insurance can seem like a daunting task. However, there are strategies you can employ to make it more budget-friendly.  

For example: 

• Consider Telematics or Black Box Insurance Policies: These policies use technology to monitor your driving habits, rewarding safe driving with lower premiums.    
• Opt for a Higher Excess: Opting for a higher excess can lower your premium, although it’s important to ensure you can afford the excess in case of a claim.    
• Build a No-Claims Bonus: Building a no-claims bonus over time by driving safely and avoiding accidents can also significantly reduce your insurance costs.    
• Add a Named Driver to your Policy: Adding a named driver with a clean driving record to your policy can sometimes result in lower premiums.   

What Factors Influence the Cost of Insurance for Young Drivers?  

Several factors influence the cost of insurance for young drivers in the UK.  For example:  

• Age: One of the primary factors is age, as statistically, younger drivers are more likely to be involved in accidents.    
• Type of Vehicle: The type of car you drive plays a significant role, with powerful or high-performance vehicles typically attracting higher premiums.    
• Location: Your location also matters, as areas with higher rates of accidents or vehicle theft may result in higher insurance costs.    
• Driving Experience: Your driving experience and driving record can impact your premium.    
• Level of Coverage: The level of coverage you choose and any optional extras, such as breakdown cover or legal protection, will affect the overall cost of your insurance policy.   

What are the Best Cars to Insure for Young Drivers?

When finding the best cars to insure for young drivers in the UK, there are several factors to consider.    

• Engine Size: Opting for a car with a smaller engine size can often result in lower insurance premiums, as these vehicles are typically cheaper to repair and less powerful, reducing the risk of accidents.    
• Safety and Security Features: Cars with good safety ratings and security features like alarms and immobilisers may be cheaper to insure.    
• Affordability: Popular choices among young drivers include hatchbacks and small family cars, which are often more affordable to insure than sports cars or larger vehicles.    
• Insurance Group Rating: Choosing a car with a lower insurance group rating can help keep costs down, as vehicles in lower insurance groups generally attract lower premiums.   

Are Black Box Policies Cheaper for Young Drivers?  

Black box policies, also known as telematics insurance, can help lower insurance prices for young drivers. These policies involve installing a small device in the car that monitors driving behaviour, including speed, braking, and acceleration.    

According to Toby van der Meer, the CEO of Hastings Direct, “Young drivers are statistically more likely to have an accident, but with the installation of telematics technology, we have seen a 25% reduction in accidents involving our policyholders.” 

Here’s why a black box policy might be a cost-effective option for young drivers:   

• Personalised Premiums: Black box policies assess premiums based on individual driving habits rather than general demographics. This potentially helps lower costs for safe drivers.   
• Incentives for Safe Driving: Young drivers who demonstrate responsible behaviour can earn discounts or rewards. For example, avoiding harsh braking and adhering to speed limits,  
• Increased Awareness: The feedback provided by black box technology can help young drivers become more aware of their driving habits. This helps encourage safer practices on the road.   

Is It Cheaper for Young Drivers to Drive Their Parent’s Car?   

Many young drivers consider reducing costs by being added as a named driver on their parent’s car insurance policy.    

While this can sometimes lead to savings, several factors should be considered:   

• Parental Driving History: If the parents have a clean driving record, adding a young driver to their policy might result in lower premiums compared to a separate policy.   
• Type of Car Insured: The make and model of the car, as well as its insurance group rating, will influence the overall cost of the policy.   
• Policy Limitations: Some insurers restrict who can drive the vehicle and may require the young driver to be listed as the primary user if they are the car’s main driver.   

Why is Young Driver Insurance So Expensive?    

Understanding why young driver insurance is expensive involves considering the various factors that insurers take into account when calculating premiums:   

• Higher Risk Profile: Young drivers are statistically more likely to be involved in accidents, leading insurers to perceive them as higher risks.   
• Inexperience: Lack of driving experience contributes to the perceived risk, as young drivers may not have developed the skills to handle various road situations confidently.   
• Cost of Claims: Accidents involving young drivers often result in higher claims due to factors such as repairing or replacing vehicles and covering medical expenses.   

When Will My Car Insurance Start Getting Cheaper?

While young drivers often face high insurance premiums, several factors can contribute to reducing costs over time.    

Here’s when you can expect to see your car insurance become more affordable:   

• Building No-Claims Bonus: As you drive without making claims, you’ll accrue a no-claims bonus, which can lead to lower premiums.   
• Gaining Experience: Insurance premiums typically decrease as you gain more driving experience and demonstrate responsible driving behaviour.   
• Reaching Milestones: Insurance costs often decrease around the age of 25, as insurers consider drivers to be more mature and less risky. However, individual circumstances may vary. 

Where Can I Compare Car Insurance Quotes for Young Drivers?   

Comparing quotes from multiple insurers is crucial when searching for affordable car insurance as a young driver.    

Here are some platforms where you can easily compare quotes:   

• Comparison Websites: Websites like Insuro, Compare the Market, Confused.com, and GoCompare allow you to input your details and receive quotes from various insurers.   
• Insurance Brokers: Independent insurance brokers can provide personalised assistance in finding suitable policies tailored to your needs and budget.   
• Direct Insurer Websites: Many insurance companies offer online quote tools, allowing you to get instant quotes and compare different coverage options.   

Remember, don’t accept the first quote you’re given. Shop around and compare prices from different insurance companies.  

According to Graham Hill, the CEO of Total Car Check, “Young drivers should use comparison websites to find the best deal on car insurance. However, read the small print and check that the policy covers everything you need.” 

How To Get A Car Insurance Estimate With Insuro:                                   

At Insuro, we aim to make the process of finding car insurance estimates simple and hassle-free.    

Our car insurance calculator is a comparison tool that allows you to run an insurance price check across over 120 providers. And because we aren’t owned by or have any investment from insurance companies, we provide an independent and unbiased service.    

Here are the steps:        

• Visit Our Website: Navigate to our user-friendly platform at www.insuro.co.uk/compare/car-insurance/.      
• Enter Your Information: Provide details about yourself and your vehicle, such as its make and model, as well as your driving history, including any past claims or violations, to generate personalised quotes.    
• Compare and Choose: Review the quotes provided, comparing coverage options and prices to select the insurance policy that meets your needs.    

Start today! Find your personalised car insurance quotes here and experience the ease of Insuro.   

Please note: This Insurance comparison tool is provided for your use by SEOPA. Insuro.co.uk are not responsible for the contents of the comparison you receive.