If the cost of learning to drive or buying your first car wasn’t enough, insurance premiums for young drivers have surged by 50% in a year. Here, we explain how you can cut costs.
Spiralling car insurance premiums have been impacting all motorists, but newer and younger drivers have been hit the hardest. Drivers aged 24 and under had to fork out £1,792 in summer 2023 compared to £1,198 a year prior, according to research by Compare the Market.
Currently, 18- and 19-year-old drivers are being forced to pay some of the highest prices on record, with average premiums for the youngest drivers now exceeding £2,000 a year.
In this article, we explain:
- How much is car insurance for new drivers?
- What type of insurance is best for new drivers?
- How to get cheaper car insurance for new drivers
- What is the cheapest car to insure for new drivers?
- Do learner drivers need insurance?
Looking for a new car insurance policy? Try our helpful comparison tool
This article contains affiliate links that can earn us revenue*.
How much is car insurance for a new driver in the UK?
According to Quotezone, a comparison site, the average car insurance policy for an 18 year old is £1,207 per year. We’ve included more of their information below:
| Only 18 year olds | Only 21 year olds | 18 – 24 year olds | 25 – 34 year olds |
| £1,207 | £1,260 | £1,192 | £827 |
How does Quotezone work?
With Quotezone you only have to fill in your details once and it’ll send your information to over 100 UK insurance providers. A few moments later their quotes are returned to you in real time, on your screen. Don’t waste time filling out multiple forms, and compare all the best deals on one browser!
Compare car insurance
The best insurance providers for young drivers
Luckily, there are cheaper insurance policies on the market. Below are some providers which offer specialist or five star rated cover for young drivers. These ratings are from Defaqto, a data company, and are specific to telematics cover.
Marmalade
Offers specialist cover
About Marmalade
– Offers a range of insurance policies for learner drivers, students, and young driver insurance
– Founded in 2006 with the aim of providing specialist cover for young drivers
Why we rate it: Marmalade offers a range of bespoke cover for young drivers, from learners to student car insurance.
Its black box insurance, for example, covers young drivers between the ages of 17 and 30 with comprehensive cover. This includes up to £5,000 protection for personal accidents and cover in Europe.
Meanwhile, if you’re not travelling long distances then it also offers pay per mile insurance. Under this policy you’ll be covered for driving a set number of miles, so it could be cheaper than an annual policy.
Marshmallow
Recently moved to the UK?
About Marshmallow
– Cover extends to car and van insurance
– Started with the aim to provide cheaper insurance policies for people who moved to the UK
Why we rate it: Marshmallow offers two different levels of cover, original and plus.
Its plus cover for telematics insurance earns itself a five star rating from Defaqto.
This is a comprehensive policy which includes £25,000 personal injury cover, windscreen protection, and breakdown cover through the AA.
It’s worth noting that Marshmallow only offers comprehensive cover, so if you wish to only take out third part insurance then you’ll need to consider another provider.
Churchill Insurance
Excellent customer service
About Churchill Insurance
– Founded in 1989, Churchill Insurance is one of the longest-serving direct motor insurers
– In addition to telematics insurance, it also offers electric car insurance
Why we rate it: Churchill insurance offers one of the best telematics policies on the market. Its telematics policy is rated five stars from Defaqto and can be managed via its app.
Here you’ll be able to access your driving score and explore active ways to improve your habits.
In addition, Churchill Insurance received a Gold award from the Times Money Mentor team for excellent customer service. Overall, it scored a 70% satisfaction score from our readers.
Direct line
App-based telematics cover
About Direct Line
– Part of a larger group which owns Churchill Insurance and Green Flag
– Also offers multi car insurance for your entire family
Why we rate it: Direct Line offers five star rated telematics insurance from Defaqto. However, what separates its cover from some of its competitors is that it doesn’t require you to install a black box in your vehicle. Instead, you need to just download its app and you’re good to go.
This means you will need to ensure you have sufficient data for the policy to function. Direct Line says travelling 1,000 miles at an average speed of 40mph will use roughly 60mb of data per month.
Plus, if your family owns another vehicle you can use its multi car insurance to receive a discount.
Why is car insurance for young drivers so expensive?
One of the most significant factors insurers take into account when calculating insurance premiums is your age.
Young and inexperienced drivers are not only more likely to be involved in a car accident, but the average cost of claims is more expensive too.
Road safety charity Brake says inexperienced drivers are less able to spot hazards. Meanwhile, youth can cause some drivers to take unnecessary risks like speeding or overtaking dangerously.
It says that one in five young drivers crash their car in their first year of driving. Furthermore, over 1,500 young drivers are killed or seriously injured on UK roads each year.
Read more: How can I beat rising insurance premiums?
What type of insurance is best for new drivers?
Comprehensive insurance is likely to be the best option for younger or newer drivers because it means you shouldn’t end up with a big bill if you’re in an accident where you were at fault.This is because it will cover damage to your car as well as any others involved in the accident.
By contrast, third-party only policies only cover the costs of damage you cause to other cars and property. You will have to pay for any repairs to your car and it won’t be covered for theft.
Third-party fire and theft policies offer marginally more cover, and will foot the bill if your car is stolen or damaged by fire.
Even though you might think-third party policies will be the cheapest as they offer a lower level of cover, that’s often not the case. This is because insurers have found these policies tend to attract higher risk drivers.
Read more: How much is temporary car insurance?
Breakdown cover from £6.95 a month
The RAC is one of the most recognisable providers to offer breakdown cover, and it’s currently running an enticing promotion for new customers. Plus, its prices are affordable too, starting from just £6.95 a month. Ts&Cs apply*
*New, single vehicle-based cover. £6.95 a month for Roadside cover
How to get cheaper car insurance for new drivers
Car insurance for young drivers will always be more expensive than for those who are more experienced. Nonetheless, there are still ways to reduce the cost:
- Consider a black box policy.Also known as ‘telematics’, these policies involve fitting a device to your windscreen that monitors your driving. This includes your speed, braking and cornering as well as the time of day you drive. It enables the insurer to give you a personalised premium based on how you drive.
By driving safely and reducing levels of night time driving, young drivers are potentially able to significantly cut the cost of their insurance.
- Ask your parents to add you to their policy.Another option is to become a ‘named driver’ on your parents’ insurance. This will boost the cost of their cover but it won’t be as expensive as a separate policy. However, it means you can only drive your parents’ car and they must use it more than you.
Pretending to be the main driver when you are not is a form of fraud known as fronting and could invalidate the policy. You also need to be mindful that if you make a claim, it will hurt your parents’ no claim discount – something they might not be too happy with.
- Shop around. It’s always a good idea to use a comparison tool, which can potentially help you get the best value quote. Confused.com says 51% of its customers could save £501 a year by shopping around. Just make sure the policy offers the level of cover you need before accepting the cheapest deal.
- Opt for a less powerful car. Car insurers see powerful cars that can accelerate quickly as more dangerous, which hikes the cost of your policy. When you get started with driving, you’ll save on insurance money if you go for a cheaper model.
Read more: What is black box insurance?
What is the cheapest car to insure for new and young drivers?
Some cars are cheaper to insure than others. If you want to keep insurance costs down, it’s important to think carefully about the car you buy.
As a rule, the bigger your car and the more powerful it’s engine, the more expensive it will be.
Comparethemarket.com has compiled a list of the cheapest cars to insure, which includes:
- Citroen C1, Vibe and Airplay models (2005 -2014)
- Fiat Panda, Active, Active ECO and Dynamic five-door models (2004-2011)
- Ford Ka+, Studio model (2016-2019)
- Hyundai i10 Premium, S, SE and S Air models (2014-2020)
- Kia Rio, CRDi 1 Air model (2011- 2017)
Do learner drivers need insurance?
If you’re learning with a professional driving instructor, you don’t have to worry about learner driver insurance. The instructor will have cover and it will be included in the cost of your lessons.
However, if you’re taking any lessons or practising with a friend or a family member, you will need to arrange insurance. You can either ask to be added as named driver on their policy, or buy your own learner driver insurance.
How much is learner driver insurance?
How much learner driver insurance costs will depend on your age, the car you’ll be driving and the length of cover.You can buy an annual or short-term policy. RAC, for example, offers cover from one day to five months. A guide price for two months of cover is £116.96.
Is my car insured?
It’s illegal to drive on UK roads without car insurance, so it’s vital that you know you’re covered.
If you don’t know whether you’re insured, or are concerned your policy has run out, you can check the Motor Insurance Database here.
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Looking for a new car insurance policy, or want to see if you can save on what you currently pay? Try our car insurance comparison tool
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