Car insurance for new drivers

Have you got someone in the family who’s just a driving test away from qualifying to drive? If you have, you will probably be aware that passing the driving test is not the only barrier to being able to take to the roads alone.

If you haven’t done so already, looking at insurance for your newly fledged driver is likely to be a distinctly gut-wrenching exercise. Even if they have saved enough money for a first car, the cost of insurance for the first year could be as much as the cost of the car itself in some cases.

Recent figures from Confused.com suggest that the average cost of insurance for someone aged 18 years old is as much as £3,162 per year – and furthermore, drivers aged between 17-20 years old have seen average insurance costs rise by more than £1,000 compared to figures from 2023.¹

Is there a cheaper option?

For parents, adding their son or daughter to their own car insurance policy is an option, although there are two important factors to consider.

Firstly, having a new and inexperienced driver on a policy may increase the price – so mum and dad should be prepared to see their own insurance premium rise.

Secondly, if the new driver is listed as a named driver on someone else’s policy, they can’t be the main driver. Putting children on your insurance with the intent of them using the vehicle as their own and driving it for the majority of the time can be considered ‘fronting’.²

Fronting is illegal and is seen as a method of fraud. If you’re suspected of fronting, your car insurance could be declared void as a result.²

However, here’s five practical tips that may help reduce the cost of new driver insurance:

1. Setting a higher claims excess

By increasing the voluntary excess amount that is paid towards a repair in the event of a claim, new drivers may be able to help reduce their overall premiums – but it’s important that they’re able to afford to pay out the initial excess before deciding to do this.

2. Opting for insurance with ‘black box’ telematics

New drivers may be able to save money on their insurance through the use of a telematics box, installed by the insurance company to monitor driver behaviour and reward safe and responsible driving. Data from insurance firm Adrian Flux suggests that new drivers may be able to save as much as 60% on their car insurance premiums with a black box fitted.³

3. Adding an older named driver to their first car insurance policy

By adding an older named driver to the policy, this could help lower premiums for new drivers. However, the caveat here is that it is important that the older driver does use or intends to use the car to avoid invalidating the insurance at a later date.

4. Choose a cheaper car

As one might imagine, the choice of make and model of car can make a big difference to the price of insurance for new drivers. Cars are ranked by insurers in groups, ranking from 1-50 – those in group 1 being the cheapest. A survey by motoring firm Carwow revealed that the top 5 cheapest cars to insure in 2024 include the Volkswagen Polo, Hyundai i10, Volkswagen Up!, Kia Picanto and the Dacia Sandero.⁴

5. Ensure that the car is safe and secure

Insurance providers like to know that the vehicle being insured is likely to be as secure as possible to avoid the risk of theft. This concerns security inside the vehicle, and where it is stored when not being driven.

If the car is fitted with an alarm, immobiliser or another security device, this may help in reducing the cost of insurance for new drivers. Much like car insurance groups, Thatcham Research has categorised alarms – the higher the rating of the security system in the vehicle, the more money could be saved on the car insurance premium.²

When the car is being driven, where is it left? The new driver will be asked for this information when comparing car insurance quotes. If the vehicle will be kept in a garage overnight, or parked on the driveway, that could result in a saving on the insurance policy compared to street parking.²

Sources

1. BBC (2024) Young drivers face £3,000 cost for car insurance. Available at: https://www.bbc.co.uk/news/business-67991154 [Accessed 18 Jun 2024]
2. RAC (2024) How to reduce new-driver car insurance costs. Available at: https://www.rac.co.uk/drive/advice/how-to/reducing-the-cost-of-insurance-for-new-drivers/ [Accessed 18 Jun 2024]
3. Adrian Flux (2024) The pros and cons of black box insurance. Available at: https://www.adrianflux.co.uk/learner-drivers/pros-cons-black-box/ [Accessed 18 Jun 2024]
4. Carwow (2024) 15 cheapest cars to insure in 2024. Available at: https://www.carwow.co.uk/best/cheapest-cars-to-insure-0115#gref [Accessed 18 Jun 2024]

All the information in this article is correct as of the publish date 27^th June 2024. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.