Cheap Car Insurance for Young Drivers

There are three different types of cover to choose from:

• Third-Party Insurance: The minimum legal level of insurance cover which protects you against damage to other people’s vehicles and injuries to others (but does not cover your own vehicle or injuries).
• Third-Party Fire and Theft Insurance: Offers the same protection as third-party insurance, but also includes cover for your car if it’s stolen or damaged by fire, and excludes any accident-related repairs.
• Comprehensive Insurance: This provides all the benefits of third-party and third-party fire and theft cover but with additional protection for your own vehicle plus cover for injuries sustained in an accident.

Comparing these options can help you find the best and most affordable insurance policy.

Young drivers have several options available to help manage costs and find the best insurance policy including:

Named Driver Insurance

• Overview: You can be added to a parent's or other policyholder’s insurance policy as a named driver.
• Benefits: Often results in cheaper premiums compared to having your own individual policy. 
• Eligibility: Named driver insurance is open to both full licence holders, and learners. You can legally be a named driver if you use the car less frequently than the main driver.
• Cost Reduction: Adding an older, more experienced driver to your policy or becoming a named driver can split the cost and reduce premiums for each driver.

Black Box Insurance

• Overview: This insurance uses a small tracking device installed in your vehicle to monitor your driving habits.
• Benefits: Tailored premiums based on your driving style, such as speed, braking, and cornering. This can lead to lower costs if you demonstrate safe driving.
• Eligibility: Suitable for both full licence holders and learners. It provides a means to secure cheaper cover on your own car rather than being insured under someone else’s policy.
• Cost Reduction: Proving responsible driving with a black box insurance policy can reduce your insurance costs compared to the standard rates for young drivers.

Pay-as-you-go Insurance

• Overview: Also known as pay-per-mile insurance, this option charges you based on how much you drive.
• Benefits: Ideal for young drivers who don’t drive frequently, as you pay for insurance based on actual mileage. This can significantly reduce insurance costs.
• Eligibility: Available for young and new drivers who drive less than average. This type of policy often includes fully comprehensive coverage, protecting you in various situations.

Student Car Insurance

• Overview: Tailored car insurance policies specifically for young drivers who are students or attending university.
• Benefits: Helps students save on car insurance premiums and start building a no-claims discount, leading to even lower costs in the future.
• Eligibility: Available for drivers who have passed their driving test and are enrolled as students. Some policies may require telematics devices, have restrictions on vehicle types, or set mileage limits.

Learner Driver Insurance

• Overview: Learner driver insurance is designed specifically for young drivers who are still learning to drive and hold a provisional licence.
• Benefits: Provides coverage for learners to gain road experience under supervision without affecting the main driver's insurance policy, helping them to build up their driving experience safely.
• Eligibility: Available for provisional licence holders. This type of car insurance may include requirements for a supervising driver, restrictions on vehicle types, or limitations on driving hours.

There are a number of things you can do to save money on car insurance as a young driver:

Pick the right car

Saving on your insurance and finding the cheapest car insurance possible begins with your choice of car.

Insurers place cars into one of 50 categories based on attributes such as power and engine size. Cars in “group one” tend to be the cheapest to insure, with “group 50” being the most expensive.

Some insurers may even refuse to cover young drivers who own a car in the highest categories as they view this as too high-risk.

Keep your car secure

Keeping your car demonstrably safe and secure is another way you can help reduce the price of your premiums. For example, storing your car in a garage is a great way to do this, as is investing in anti-theft devices like steering wheel locks.

Advanced learning courses

You can improve your driving skills after you pass your test by paying for specialised driving courses, such as the government's Pass Plus scheme.

Insurers may see you as a lower-risk driver if you can provide evidence of completing an advanced driving course, thus reducing the cost of your insurance policy.

Increase your voluntary excess

When you claim on your insurance, the first part of the claim is usually paid by you, known as the policy excess. So if you opt for a higher excess amount, you will often be rewarded with a lower overall premium cost. However, make sure that you can realistically afford the amount of excess you choose, else you won’t be able to facilitate a payout if you cannot cover the initial excess. 

Compare quotes with a price comparison website

If you follow all of the above steps, drive carefully and keep mileage down, you can significantly reduce the cost of your insurance as a young driver.

But by far the best way to guarantee that you get the cheapest car insurance quote is to use an online comparison service.