Young driver insurance: 10 tips for paying less

Who is considered a young driver?

Although the term is confusing, young driver status is not necessarily defined by an age limit. You are considered a new driver for the first two years after passing the driving test.

The New Drivers Act means that the first two years on the road are a probationary period. If you accumulate 6 or more penalty points within 2 years of passing the driving test, your licence can be cancelled (revoked). In order to get it back, you will have to complete a re-test.

What is the average cost of young driver insurance?

Car insurance is likely to be more expensive for young drivers because they are statistically more likely to be involved in a road accident due to their inexperience on the road.

Car insurance premiums are thus relatively high for young drivers. In 2022, drivers aged between 17 and 19 paid £1,800 a year for cover, and those aged 20 to 24 paid £1,200 per year. These figures vary pending on the type of policy and the model of the vehicle.

Tip: some insurers offer pay-as-you-go policies that are based on the number of hours you spend behind the wheel. This might save you money if you are not a high-milage driver.

Our 10 tips for paying less for your young driver’s insurance

Fortunately, there are ways for novice drivers to reduce insurance premiums. Here are our tips on how to drive safely without breaking the bank:

• Reduce your mileage: even if you have a standard policy, you might be able to save money by giving a lower estimated mileage.
• Pay annually: buying your insurance up-front is likely to be cheaper than spreading the cost over 12 months with interest on top.
• Take out a policy with your parents’ insurance company: some companies offer multi-car policies with discounts for drivers in the same household.
• Buy a second-hand car: used cars are usually cheaper to insure as they are seen as less valuable than new vehicles. But this depends on the driver’s history and other factors.
• Engine size: the popularity of the model and the value of the car all have an impact on the cost of car insurance. For young drivers, a less powerful car might be a good option to keep costs down.
• Opt for secure parking: as the risk of claims is reduced, companies might reduce the premium if the car is parked in a garage or driveway rather than on the public highway.
• Choose telematic insurance: telematics is a policy that consists of installing a connected box in your vehicle that evaluates driving behaviour. Flexible and careful driving can save you £100s on your insurance premiums, but driving badly will see your premiums increase!
• Take out insurance by the mile: if you don’t drive much, this is an excellent option for saving on your premiums. There are two options: an annual mileage limit that you cannot exceed or a “pay as you go” option.
• Use an insurance comparison tool: these tools allow you to evaluate insurance companies’ offers in just a few clicks, be sure to try all the different sites to get the best deal.
• Take care of small claims yourself: by not declaring small accidents, you continue to benefit from your no-claims bonus.

Thankfully, paying a lot for your young driver’s insurance is not inevitable. Thanks to a few simple tips, you can drive with peace of mind, well insured, and without straining your budget!