Car insurance for young drivers

How much is car insurance for young drivers?

New drivers face higher motor insurance premiums, especially young first-time drivers. 

According to Go.Compare, between July and September 2024, the average 17-24-year-old driver was quoted £887 - more than twice what drivers in general pay (£437).

Those are average quotes, but car insurance is personally priced, so you could pay more or less. 

Here we explain how to reduce your premium and avoid extra fees.

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How does age affect the cost of car insurance?

1. Higher premium

Being a younger driver, particularly if you're under 25, will increase your premium.

This is the case even if you've been driving for several years with no accidents, although experience and a clean record can help.

2. Steeper excess

You may also find you must have a higher excess – the amount of any claim that you will have to pay. 

A compulsory excess might be £100 for a driver over 30 but several hundreds of pounds if you're younger. And you may feel you have to choose a high voluntary excess to bring down the premium.

This means any claim will cost you more than an older driver, although you can separately buy excess insurance.

3. Cost of credit

If you want to spread payments monthly, many insurers will charge interest on top of your premium.

We found the average rate in September 2024 was 22% - though with some providers, they're over 40%.

Some insurers have a flat rate of interest for all pay-monthly customers, but others adjust the rate based on credit score.

It's possible that if you're younger you may have a limited credit history (such as because you've never had a credit card) and hence a low credit score - resulting in a higher interest rate.

• Find out more: How to improve your credit score 

What type of insurance is best for new drivers?

Motor insurance comes in three main types:

• Fully comprehensive – this covers you damaging your own car as well as other people (third parties) or their property
• Third-party, fire and theft (TPFT) – any damage you cause to others, plus if your vehicle is stolen or damaged or destroyed by fire
• Third-party only (TPO) – only the damage you cause to others.

Surprisingly, TPO is sometimes more expensive than comprehensive cover, as insurers see drivers with TPO as riskier.

If the price difference is marginal, opting for comprehensive cover gives you much more security. 

While you might be able to hold third-party insurance and afford to pay for a small repair yourself, if you have a larger accident you might not be able to afford to get back on the road.

You must also state what you will use the car for. If you commute to work (even to the station to get a train to work) then you need to include commuting cover.

 If you drive to different places for work then you also need business use. Business use premiums depend on the work you do, any tools or products you carry and who your passengers might be. 

Failure to accurately declare any of this can result in you being deemed uninsured. Your car may be crushed, on top of you being fined and given penalty points.

While price is important, don't settle for a cheap policy that won't pay out when you need it. Which? has rated car insurance policies and surveyed customers who have made a claim, to find out their experiences.

• Find out more: Best car insurance companies in the UK 2025 

How to get cheaper car insurance for new drivers

Shopping around

Get quotes from several comparison sites, as well as insurers that aren't on them.

If you're still struggling to find an affordable quote, talk to an insurance broker. The British Insurance Brokers Association can help you find one near you.

• Find out more: How to find cheap car insurance 

Excess insurance

Opting for a high excess can reduce your premium but can leave you paying a high proportion of repair costs if you have an accident.

One compromise is to buy separate excess insurance. This has its own premium, so you'll need to calculate whether you'd just be better off picking a lower excess with your main insurer.

Go.Compare offers £250 free excess cover if you purchase a policy through it.

Spread payments the right way

Try to buy the policy outright and not in an instalment plan offered by the insurer or broker. 

Look at alternative ways to get credit, such as paying for annual cover on an interest-free credit card (or asking parents for a loan), then paying the card or your parents back on a monthly basis.

But work on improving your credit score too - if you haven’t already done so - to reduce the interest rates insurers offer you.

Get 'black box' insurance

Opting to have a telematics device ('black box') installed in your car can lower your premiums.

Insurers will track how and when you drive and reduce your premiums, or send you vouchers or cashback, if you drive according to their advice.

But if you drive in a way they consider risky, such as speeding or sharp braking, or frequently drive at night, your premium could rise.

• Find out more: How black box car insurance works 

Drive a cheaper and less powerful car

It's worth checking how much a car you're considering buying will cost to insure before going ahead with the purchase - as the insurance premium may form a significant part of its running cost.

A car that's cheaper to buy will generally be cheaper to repair and replace, and hence cheaper to insure.

Pay attention to engine size though - aim for below 1.5 litres and ideally close to 1.0 litre. 

Even if you may be able to buy a larger, more powerful used car for not much more money, bear in mind that insurers are concerned by the risks a faster car presents.

• Find out more: Best first cars for new drivers in 2025 

Extra qualifications

The ABI recommends taking the Pass Plus safer driving qualification after passing your driving test. 

You can then also consider the Institute of Advanced Motorists, which has a young driver assessment as well as advanced courses, plus RoSPA’s bronze, silver and gold advanced driving standards.

Should I add myself to my parents’ car insurance?

If you are driving a parent's car you should get them to add you to their insurance as a 'named driver'. 

It might increase their premium but will mean you drive under their fully comprehensive policy. 

Driving other cars' ('DOC) cover, which covers you to drive cars where you've not been named on the policy, won't necessarily be extended to you as a named driver - especially you're under 25 - and in some cases DOC cover is only allowed to be used in emergencies. 

As a named driver, you don't usually accumulate no-claims years, which can be used for a no-claims discount.

However, some insurers run schemes where named drivers are rewarded for not claiming, but only if you take out a policy with that same insurer. Weigh up the quotes from other insurers against what your parent's insurer is offering you.

What you must not do is insure a car for which you are the main driver (the person who drivers the car most often) in the name of a parent, with you added as a named driver. This is a criminal offence known as fronting. Both you and your parent could be in serious trouble.

Alternatively, you could add your parents as named drivers to your insurance policy. This sometimes reduces the premium.

Why is car insurance for new drivers expensive?