How to get cheap car insurance for young drivers

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Finding cheap car insurance deals can be tricky for young drivers.

Statistically, drivers under 25 tend to have more accidents, so insurers think that they're "riskier" to insure.

The good news is that there are lots of easy ways for young drivers to get cheaper insurance. 🤑

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Young drivers are seen as "riskier" to insure

The cost of car insurance is mainly based on risk.

High-risk drivers are more likely to have an accident and need to make a claim. This costs insurance companies money.

So the riskier you are to insure, the more expensive your car insurance will be.

Unfortunately for young drivers, age plays a huge part in the perception of risk.

The average annual car insurance policy costs around 24.5% more in your 20s than in your 30s, and just under 50% more than in your 40s.

In the UK, young drivers - those aged 17-24 years old - are seen as the most risky. Young drivers make up around 7% of all UK licence holders.

Why are young drivers more expensive to insure?

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 the age of 25.

Insurers also look at lots of other things when working out how much you should pay for a policy, including your:

(By the way: we think your insurance price should be based on how you drive, rather than assumptions based on your personal details. That's why our Smart Pricing gives better prices to better drivers. You could save up to 1/3 on your pay-monthly policy!)

Getting cheaper car insurance feels great

Looking for learner driver insurance?
We offer short-term insurance perfect for lessons and practice. Check out our hourly policies.

10 ways to get cheaper car insurance for young drivers

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:

1) Add a more experienced named driver to your 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. Don't take the risk, it's just not worth it.

2) Choose a car from a lower insurance group

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.

Because we love being helpful, we made a free insurance group checker so you can check what group your car (or a car you're interested in buying) is in.

3) Improve your car's security but avoid modifications

Installing security features like dash cams, parking sensors and locking wheel devices could help make your insurance cheaper. This is because they make your car more secure and less likely to be targeted by criminals.

Sometimes a dash cam could even help you reduce your car insurance bill.

Beware of performance and cosmetic car modifications like changing your engine or changing your car colour, though. Some insurers (like Cuvva) don't cover modifications at all, and the ones that do often charge more because modified cars are riskier to insure.

4) Limit your mileage

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 (the more often you're on the road, the more chances there are to have an accident).

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.

5) Adjust your voluntary excess

The excess is a sum of money you have to pay when you make an insurance claim.

You can choose your own voluntary excess - or choose not to pay 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.

Car insurance for young people doesn't need to be expensive

6) Tweak your job title

If there's a few different ways to describe your job (for example "artist" and "designer"), test them both out and see which gives you a cheaper policy.

Just make sure 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.

7) Pay annually (usually!)

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.

Although paying monthly for insurance can improve your credit score some insurers add interest to the payments. This makes your policy more expensive.

At Cuvva, though, things are a little different. We've created a pay-monthly car insurance subscription without any interest or added fees - and there's no penalty for cancellations either! You just pay for the insurance you use.

8) Drive safely

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, though. So it's worth checking that it will make your policy cheaper before spending your money.

9) Get on the electoral roll

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.

10) Consider a black box or telematics

Insurers can track your driving habits using a black box (aka a "telematics device"), that is fitted to your car.

Some companies offer rewards and discounts for good driving, while others may charge you a penalty for poor driving habits.

Here comes the shameless plug… we've made a type of insurance that uses your driving habits to give you a fairer price. We think it's a bit better than black box insurance. Interested? Get a Smart Pricing quote today.

You can read about the differences between black boxes (which can be clunky and come with added fees) and Smart Pricing here.

Third-party car insurance isn't always cheaper in the long run

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 May 2022