Congratulations on passing your driving test! As a new driver, securing the right car insurance is crucial for legal compliance and your financial peace of mind.
According to Which, the average cost of car insurance has dropped 10% since last year, but is still higher than it was a few years ago.
Premiums can be particularly high for young drivers. Understanding what influences the cost, the different types of insurance and tips for getting the best deal can help you find a policy that suits your circumstances and your budget.
So, why is car insurance expensive for new drivers?
As a new driver, you’re considered a higher risk by insurers due to your lack of experience on the road.
Statistically, drivers aged 17–24 “account for a relatively large proportion of both car driver casualties and casualties in collisions involving cars”, says the UK parliament.
Their data shows that in 2023, a young driver was involved in around 20% of all killed or seriously injured casualties from car collisions.
This increased risk and the fact that insurers often perceive young drivers as more likely to make claims translates into higher premiums.
What types of car insurance are there?
In the UK, the minimum legal requirement is third-party insurance, which covers damage to other vehicles and injuries to other people.
There’s also third-party, fire and theft, which includes protection if your car is damaged by a fire or stolen.
Comprehensive cover offers the highest level of insurance, typically covering you, your car and damage or injury to other people if you have an accident.
It’s important to compare quotes to determine which option offers the best value for your needs.
How can I lower my car insurance premium?
- Take a Pass Plus course: Completing a Pass Plus course can demonstrate your commitment to safe driving. Some providers may offer discounts, but not all, so ask before purchasing your insurance.
- Add an experienced named driver: Including a more experienced driver on your policy can sometimes lower your premium, as insurers may view the shared risk more favourably.
- Choose a car in a lower insurance group: Opt for a vehicle with a smaller engine and fewer modifications, as these are typically cheaper to insure.
- Pay annually: Paying your premium in one lump sum rather than monthly can often reduce the overall cost, as monthly payments may include interest or fees.
- Increase your voluntary excess: Agreeing to pay a higher excess in the event of a claim can lower your premium, but make sure it’s an amount you can realistically afford if needed.
- Look at telematics (black box) insurance: Installing a black box that monitors your driving habits can lead to discounts for safe driving behaviour.
By understanding the different types of insurance and the factors that influence your premium, you can find a policy that provides the right coverage at a suitable price.
Always shop around and compare quotes from different insurers to find the best deal for your needs.
