How to get cheap car insurance for young drivers
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. 🤑
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:
9 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 looking for cover. 🎉 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 don't cover modifications at all, and the ones that do often charge more because modified cars are riskier to insure.
Cuvva does cover some modifications. Here's the full list of the modifications we cover.
4) Be accurate with 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, the more often you're on the road, the higher the price - so don't just lazily click the highest option. Have a proper think and work out your expected mileage (we've got a handy mileage calculator for this very thing!).
Just make sure you're honest and accurate, or you risk your policy being voided. Top tip: don't forget to factor in some unexpected longer trips.
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.
6) Improve your credit score
A better credit score could result in a cheaper premium.
We've written a whole guide on credit scores and car insurance - have a read!
7) 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.
8) 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.
9) 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.
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.