For those just starting out on the road, securing affordable cover can be challenging. But it’s not only young drivers themselves facing these costs. Parents often step in to help with expenses like insurance, driving lessons, and even sharing (or buying) a vehicle.
With car insurance costs starting to come down from record highs, it’s a good time to revisit insurance quotes. So, what’s the best way to insure a young driver without breaking the bank? From black box policies to provisional-only cover, we’re here to help you make the right choice.
Car insurance costs: where do we stand?
At the end of 2023, car insurance premiums peaked at a record £995, on average. And although 2024 felt like a price shock, the good news is that the average price of a new policy is more than £160 cheaper now compared to March 2024.
For young drivers in particular, there have been significant decreases. Compared to this time last year, 18-year-olds now pay £711 less (23%).
The average premium of £2,434 is the lowest cost for drivers of this age in almost two years. Even for 17-year-olds, there are significant reductions with prices now £661 (23%) cheaper than last March, at £2,258.
That being said, at over £2,000 to get a young driver on the road, these averages are still high. So what can do you to save as much money as possible on a young driver’s premium?
Why is insurance more expensive for younger drivers?
Your car insurer takes into account various factors to work out the price of your premium; vehicle, driving habits and location, occupation and age. It’s all about calculating how much risk is involved in insuring you – essentially how likely is it that you’ll claim.
And unfortunately, data shows that young drivers are more likely to have an accident and need to claim.
What’s more, new drivers won’t have had a chance to build up a No Claims Bonus yet. So, it’s a triple-whammy of less experience, being high risk, and not benefiting from this massive discount.
How to save money on a young driver’s policy
1. Consider a ‘black box’
Black box insurance, or ‘telematics’, refers to a policy that includes driving with a device to monitor and record your driving style. This technology allows insurers to tailor the insurance premium based on your actual driving performance.
This kind of policy offers a more tailored insurance premium based not on how young people in general drive, but instead on how you drive. It allows young drivers to earn cheaper premiums through responsible driving.
The downside? You may have a curfew and limited mileage, and you risk penalties for bad driving. Excessive speeding, harsh breaking and cornering, and phone usage will all contribute to a ‘red journey’, and could result in a fine of up to £150 in some cases.
2. What car you drive matters
If you’re buying a vehicle for a new or young driver, consider the make and model carefully in terms of which Car Insurance Group it falls under.
You can even get a car insurance quote ahead of time, to get a rough guide to the cost of insuring a young driver on that vehicle. This is something a broker like Howden can assist you with.
3. Named driver or a new policy?
When you insure a new or young driver, should you add them to your policy or get them their own policy? Well, it all depends on who owns the vehicle.
If they’re driving a vehicle owned by a parent, they could be added to the existing policy as a named driver. This might work out as a more cost-effective solution. However, the downside is that the new driver won’t be building up their own no claims bonus, which can lead to higher premiums in the future.
If a new driver is driving a car that they own, then they need their own insurance policy. Not doing so could result in fronting – which is illegal! For example, if you declare to an insurer that a more experienced driver is the ‘main’ driver, rather than the newly qualified driver to try and get a cheaper premium, then you’re committing fraud.
Insurance fronting is most often caught during the claims process, and could invalidate an insurance policy. You risk being charged with fraud and potentially taken to court – so it’s really not worth it. If in doubt, this is where the advice of a broker could be invaluable.
4. Learner specific policies
It’s worth looking for specialist schemes for learner and new drivers. For example, a temporary learner driver add-on for another driver’s car while you’re learning can give you that flexible, short-term protection, covering the learner driver to practice in that car with a supervising driver.
Some even offer a relatively low excess of £250, and it means there’s no impact on a parent’s NCB. There are even young driver insurance schemes that allow you to set up cover while you’re on a Provisional Licence and agree no additional premium midterm once passed test.
5. We’re here to help
Insurance isn’t a one-size-fits-all thing – especially when it comes to insuring young drivers. But by purchasing policies online, you could be purchasing something unsuitable, or even missing out on a better price!
That’s why it’s worth speaking to an insurance broker, such as Howden. Not only will an expert consider your exact needs, and find a policy that’s tailored to you, but they have access to schemes that you can’t find on comparison sites. By getting an insurance broker to do the hard work for you, it means there’s no nasty surprises in your policy, in case you had to claim.
Search Howden Insurance to find your nearest branch.
Sources: BBC News, Confused.com
You could also read:
- AirTags – a car thief’s worst nightmare?
- Top tips for avoiding a claim crisis
- The older driver’s handbook
- First cars vs worst cars
- Dashcams and driver scores – do they reduce your premium?
This is a marketing blog by Howden Insurance.