Finding cheap car insurance deals can be tricky for young drivers.
This is because (statistically) drivers under 25 tend to have more accidents, which makes them riskier to insure.
The good news is that there are ways for young drivers to get a cheaper car policy.
We explain everything you need to know.
The average annual car insurance policy costs around 24.5% more in your 20's than in your 30's, and just under 50% more than in your 40's.
In the UK, young drivers are made up of people aged 17-24 years old. Young drivers make up around 7% of all UK licence holders.
The cost of car insurance is largely based on risk.
Insurance companies look at your age as one of the big things that determines your risk.
As a general rule, the riskier you are to insure, the more expensive your car insurance policy will be.
This is because high-risk drivers are more likely to have an accident and need to make a claim (which costs insurance companies money).
Young drivers are more expensive to insure because they’re (statistically) more likely to have an accident.
(Around 25% of all claims are made by drivers under 25-years-old.)
Insurers also look at lots of other things when working out how much you should pay for a policy, including your:
We think your car policy should be based on how you drive rather than assumptions based on your personal details.
At Cuvva, we’re working on a new type of insurance to do just that!
The good news is that there are ways of getting cheaper insurance if you’re a young driver. 🎉 (The secret is making yourself less risky to insure 🤫)
These tips and tricks could help you get a cheaper car policy:
An experienced driver with a good driving history is statistically less likely to get into an accident.
This makes them cheaper to insure since they’re less likely to make a claim.
Adding an experienced named driver, such as a parent, to your policy could reduce your overall risk level and help you get a cheaper car policy.
It’s also worth checking if it would be cheaper for you to be added as a named driver on a more experienced driver’s policy.
But it’s really important that the person using the car the most is listed as the main driver.
If you’re listed as the named driver, but do most of the driving, you could be committing insurance fraud known as “fronting” - which is illegal.
If you’re caught fronting, your car insurance may be invalidated which could make it harder for you to get a policy in the future. 😕
Every car in the UK is put into an insurance group between 1 and 50.
Insurers often use these groups to work out how much your car insurance will cost.
Generally speaking, the higher the car insurance group, the more expensive your insurance policy will be.
So a car in insurance group 1 will cost a lot less to insure than cars in insurance group 50.
You can find out what group a car is in using our free insurance group checker.
Installing security features like dash cams, parking sensors and locking wheel devices could help make your insurance cheaper.
This is because they make your care more secure and less likely to be targeted by criminals.
Some insurers don’t cover modifications at all, and the ones that do often charge more because modified cars are riskier to insure.
Most insurers ask for an estimated annual mileage when you buy car cover to work out how frequently you drive (and therefore your risk of getting into an accident).
Usually, car insurance policies are more expensive if your mileage is high because you’re more likely to get into an accident when you drive a lot.
On the other hand, drivers with lower mileage tend to get cheaper car insurance. So you may be able to get a cheaper policy if you drive less throughout the year.
The excess is a sum of money you have to pay when you make an insurance claim.
You can choose your own voluntary excess. (And you don't have to set one at all!)
But the higher you set your voluntary excess, the cheaper your car insurance policy will be.
Make sure your excess isn’t too high though! As you’ll need to pay that amount to be able to claim for damage to your car.
With our new pay-monthly car insurance you can adjust your excess.
If your job falls under several titles - for example, “artist” and “designer” - test them both out and see which gives you a cheaper policy.
Make sure that the job title you pick actually describes what you do!
Your insurer may cancel your policy if you’re caught lying to get a cheaper quote.
Paying for an annual policy in one lump sum is usually cheaper than paying monthly by direct debit.
This is because traditional car policies insure you for the entire year so making monthly payments is like repaying a loan.
At Cuvva, we’ve built a new subscription car insurance that lets you pay monthly without any interest. (You can also stop your policy at any time without paying a cancellation fee).
Driving offences such as speeding could result in your premium going up because it shows that you’re a high-risk driver.
Getting six or more penalty points in your first two years of driving can also result in your licence getting cancelled. 🚫
Driving carefully helps you build up a good claims record and could help make your insurance cheaper.
Some insurers offer discounts to drivers who complete the Pass Plus driving qualification.
The course costs around £150-£200 so it’s worth checking that it will make your policy cheaper before spending your money.
Registering to vote makes it simpler for insurers to confirm your identity when you get a quote.
Drivers who aren’t on the electoral roll are sometimes charged more for a policy because it’s harder for companies to prove their details are correct.
It only takes a few minutes to sign up and could help keep the cost of your car policy down.
You can register to vote on GOV.UK.
Insurers can track your driving habits using a black box (aka a “telematics device”), that is fitted to your car. (Some companies use apps instead.)
Some companies offer rewards and discounts for good driving, while others may charge you a penalty for poor driving habits.
We’re working on a new type of insurance that uses your driving habits to decide how much your policy. Watch this space!
Third-party cover is a type of car insurance that only insures against damage to other people’s cars or injury to other people.
While third-party car insurance policies tend to be cheaper, they may work out more expensive in the long run.
This is because you’ll have to cover the cost of repairing or replacing your car yourself if you ever get into an accident.
Sometimes a fully comprehensive policy works out cheaper overall as they tend to cover the cost of repairing or replacing your car.
They’ll also usually offer a pay-out if your car gets written-off.
It’s really important to check the terms and conditions of the policy you sign up for and make sure you get the cover you need.
If anything is unclear, get in touch with the company to check.
Updated on 24th March 2021