A guide for young drivers getting car insurance: what to know and what to avoid

A guide for young drivers getting car insurance: what to know and what to avoid

It’s no secret that young drivers’ insurance is typically very costly and can prove quite the expense for parents, guardians or for the young driver themselves. It’s not uncommon for insurance to cost more than the price of the first car, either.

On average, quotes for teenagers looking at car insurance can be as much as three times the amount of quotes for drivers who are in their mid-thirties. It’s clear that there is a huge disparity because as young drivers gain more experience and when they hit the age of 25, the insurance drops by almost 30%, continuing to decrease with each birthday.

That’s why, here at Direct Gap, we’ve put together this guide for young drivers’ car insurance. The things to know and research as well as the things to be careful of.

Understanding the different types of insurance

When you or your child applies for a quote from a car insurance company, they will be asked a number of details, including their age, to determine the criteria for their quote. This can also include personal details such as postcode, information about the car they will be driving, the level of cover, the estimated miles they will be driving each year, any previous car insurance claims, any criminal convictions, and if they have a no-claims bonus.

"Adding a parent or guardian as a second, low-risk driver on the young driver’s insurance can also help to lower car insurance quotes."

The premium, how much a young driver or their guardian will pay for car insurance, will be calculated based on that information. The more risk factors (history of claims, criminal convictions related to driving, lack of home security), the higher the premium quote will be.

The three levels of car insurance cover:

1. Third party
2. Third party, fire and theft
3. Fully comprehensive

Generally, we recommend that if you would struggle to replace your car in the case that it was written off in an incident, then you should go for the highest level of cover when it comes to young drivers – which is fully comprehensive.

Choosing a car (and an insurance group)

For young drivers looking for cheaper car insurance, the easiest way is to search for a car in a low insurance band. All cars are assigned an insurance group number (1-50). Insurance group 1 is the cheapest and 50 is the most expensive.

When looking for a car for or as a young driver, choosing one in a lower insurance group can be a simple way to quickly reduce your premium.

Why adding a second, low-risk driver can lower insurance

Adding a parent or guardian as a second, low-risk driver on the young driver’s insurance can also help to lower car insurance quotes. However, you must be careful because they cannot legally pretend to be the main driver. This act is called fronting and is illegal in the UK.


When to avoid the monthly instalment and pay upfront

While monthly installments may be the better option for some young drivers, others will find that the large interest that most car insurance companies add on to installments will quickly amount to a much greater cost than a single annual one-off payment would.

Consider taking an advanced driving course

This won’t always be the case for car insurance companies but many will lower a premium if a young driver has completed an advanced driving course. These are available from many local driving tutors and include driving on motorways and in harsh weather conditions.

James Cartwright

James Cartwright

James is an innovator in the Gap Insurance market with a longstanding understanding of automotive and Gap Insurance and consumer trends. In authoring these articles he brings together over 20 years of industry experience and a lifetime as an automotive enthusiast.

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