Car insurance for young drivers

We’ve reviewed independent expert sources to come up with candidates for the accolade Best Young Drivers Insurance 2018. They are as follows:

Direct Line — Drive Plus
Ingenie — Car Insurance
Churchill Car Insurance — DriveSure
Aviva — Motor Insurance with the Aviva Drive app
Co-op — Young Driver Insurance
Tesco Bank — Box Insurance
Admiral — LittleBox
Bell Insurance — Plug and Drive
RAC — Black Box Car Insurance
Coverbox — Car Insurance
Wise Driving — Intelligent Car Insurance
Marmalade — New Driver Insurance
Hastings Direct — Smart Miles
Insure The Box — Private Car
Read on for:

How we came up with our Top 14 Young Drivers Insurance List
Latest News on Young Drivers Insurance
What is Black Box Car Insurance?
Which companies offer Black Box Car Insurance for Young Drivers?
How can you compare Young Drivers insurance?
Top tips to get cheaper Young Drivers insurance quotes
Young Drivers Insurance Reviews

How we came up with our Top 14 Young Drivers Insurance List
The cost of car insurance for young drivers can vary enormously because it is based on factors such as the age and driving experience of the young driver, the model and insurance group of the car being insured, and your postcode.

Comparison sites like Gocompare.com allow you to check prices from different insurance companies, based on these factors. Because it’s easy to check prices on these sites, we’ve decided to focus on the quality of the insurance to create our list of the best young driver insurance.

We looked at Which’s review of car insurance — and particularly at the total score awarded, and their «Recommended Providers». We then looked at an independent financial services review firm’s ratings for the comprehensiveness of cover each providers’ policies offer for young drivers.

We only considered insurance companies that have policies or tools specifically aimed at young or new drivers.

Latest news on Young Drivers Insurance
After a period of falling insurance costs, it looks like car insurance prices are on the rise. Although older people seem to be facing the steepest price increases, young drivers aren’t immune.

According to Confused.com, 18 year olds are paying the highest premiums. Their average is £2,114. Seventeen-year-olds are paying a little under that — an average of £2,003, while 34-year-olds are paying £655. However, it looks like Confused.com uses data from comprehensive car insurance policy quotes, which can be expensive.

There may be cheaper policies but young drivers are still likely to find their premiums are well in excess of £1,000, which will be more than the price of many people’s first car, especially if it is in group 1. Find out more with our guide to how much UK car insurance costs.

That is because insurance companies base their pricing on average data for age groups and young people tend to claim more. Black box policies can be cheaper for young people because the information the box records can prove the driver is safer than insurer’s data would have them believe (as long as you actually drive safely!).

Another interesting development has been the launch of Marmalade’s Cars for Young Drivers scheme. This offers young drivers (17 years old and up) free car insurance for 12 months when buying a new car on finance. Prices start from £164 a month, with around £500 of deposit payable up front, and cars from popular manufacturers like Fiat, Ford, Vauxhall, Kia, and Peugeot are available.

What is Black Box Car Insurance?
The black box (known as «telematics» to those who work in insurance companies) enables insurers to track driving style and enables them to predict which drivers are more or less likely to have accidents.

Black box insurance policies typically re-assess the price of insurance based on the data from the black box — either monthly, quarterly, or annually. Generally, driving shorter distances, at lower speeds, during the day (as opposed to at night), with controlled acceleration and cornering results in lower insurance premiums over time.

Learn more about black box car insurance.

Some companies have incorporated the principles of black box into apps that can measure your driving ability. Aviva has launched Aviva Drive, which it says helps drivers with a score over 7.1 out of 10 save an average of £170 on comprehensive car insurance.

Which companies offer Black Box Car Insurance for Young Drivers?
The companies in our Young Drivers Top 14 who offer black box insurance are:

Direct Line (Drive Plus)
Churchill Car Insurance (DriveSure)
Co op Young Driver Insurance
Marmalade
Bell Insurance (Plug and Drive)
Admiral — LittleBox
Hastings Direct (Smart Miles)
Coverbox — Car Insurance
Other well-known providers of black box insurance include:

Ingenie
Insure The Box
Drive Smart
Wise Driving
Learn more out about the nine best black box providers here.

How can you compare Young Drivers Car Insurance?
As in most markets where prices are high, competition has entered.

For many, the huge number of brands is not just bewildering but actually unhelpful. This is where the price comparison websites can help (for example Confused.com and Gocompare.com).

On these sites you enter your details once and in return you’ll receive quotes from a number of insurers who are, in effect, competing for your business.

However, there are some limitations with comparison sites for Young Drivers. Be aware that simply picking the company at the top of the list (ie the cheapest) might not actually get you the cheapest or most appropriate cover.

Why price comparison sites are not always best for young drivers

Many insurers are not listed on price comparison websites, including Direct Line and Aviva
Some policies are tailored to specific groups of younger drivers and may provide more relevant or tailored cover to these groups — for example, Endsleigh has insurance cover designed specifically for students
To reduce the cost of their policies many insurers have stripped back what is included. So be sure you know that what you’re buying is what you need. For example, watch out for policies that only cover limited mileage (a 3,000 mileage policy for drivers may not work for those who have a 25 mile daily round trip to work or college). Some don’t cover windscreen damage (typically £35 — £75 to repair a chip, more to replace it). Others strip out legal expenses cover, which pays out if you need to contest an insurance decision.
If you’re buying a new car you may be interested in our guide to GAP insurance.

Top tips to get cheaper Young Drivers insurance quotes
You could buy your insurance with as high an excess as your insurer will allow, and then separately insure this excess. The likelihood is that this will reduce your premium. But be aware that you will not be able to make a claim up to the level of the excess selected, but successful claims above that level will be paid out in full. Importantly this route can help build up a No Claims Discount by preventing smaller claims.
Build your No Claims Discount — some insurers will allow you to do this without having a policy in your own name so you may be able to build it while driving on a parent’s policy (for example, The AA), while others will let you carry forward your learner driver track record into a full driver policy (for example, Provisional Marmalade).

Young Drivers Insurance Reviews
Read our expert, independent reviews of companies such as Marmalade insurance and Aviva to learn more about Young Driver insurance:

Marmalade Car Insurance Review
Aviva Car Insurance Review
Admiral Car Insurance Review
Hastings Direct Car Insurance Review
Bell Car Insurance Review
1st Central Car Insurance Review
Carrot Insurance Review
Endsleigh Car Insurance Review
Churchill Car Insurance Review
Ingenie Insurance Review
Drive Smart Insurance Review
Wise Driving Insurance Review
MyPolicy Insurance Review
New drivers’ insurance for cars is notoriously expensive – find out why and what you can do to lessen the blow and find cheaper insurance for young drivers.

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The latest data shows that average premiums for young drivers aged 17 to 22 are up to £1,771 (AA British Insurance Premium Index July 2017).

And with insurers calculating car insurance premiums based on risk, the cost of young drivers insurance is only heading in one direction.

Why is young drivers car insurance so expensive?
The main reason car insurance for young drivers is so expensive is the risk the insurer takes — statistics show that young drivers are far more likely to be involved in accidents than drivers over the age of 25, with insurance premiums calculated to reflect the stats.

AA research shows that one in eight British drivers is aged 25 and under, with a quarter of all drivers involved in serious traffic collisions within this age group.

As well as being more likely to have an accident, young and new drivers often have to pay more for their car insurance because they haven’t had the chance to build up a no claims bonus over time.

This makes cheap car insurance for young drivers quite difficult to find, but you can compare insurance policies from different providers for new driver cover on uSwitch:

Get a car insurance quote
See a range of car insurance quotes in just a few minutes when you compare with uSwitch

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How to find the best cheap car insurance for young drivers
There are a number of things you can do if you’re struggling with the high cost of car insurance for young drivers:

Find the cheapest cars to insure
Many things can impact the cost of young driver insurance and one of the first places to look at is the car itself.

Insurers place cars into individual insurance groups from 1 to 50. Typically, if the car is in group 1 it will be amongst the cheapest to insure and 50 will be the most expensive. Cars are rated on the following factors:

How quickly the car accelerates and its top speed
The value of the car as new
The security features the car has
How much it will cost and how long it will take to fix if it is broken
How much the individual parts cost
You can learn more about the type of cars which attract the cheapest insurance premiums by reading our guide to the cheapest cars to insure.

Increase your excess
Choosing to pay a higher excess — the amount you have to pay up front if you make a claim – could significantly lower the cost of young driver insurance.

However think realistically about whether you could afford to pay that lump sum if you end up needing to make a claim.

Don’t pay for what you don’t need
With a number of different types of car insurance policy out there, it pays to get an idea of what level you require. Don’t pay extra for what you don’t need.

The minimum level of cover to legally drive in the UK is third party car insurance. This will cover costs in repairs or injuries to any third party affected by an accident you cause. Any costs to your own car however will not be covered.

With a third party car insurance policy you will also not be compensated if your car is stolen or damaged. If you live in an area where theft and vandalism is common then you might want to consider getting third party, fire and theft cover.

As with regular third party insurance however, third party fire and theft won’t cover any injury costs or repair costs to your vehicle in the event of an accident. To get this level of cover, opt for a fully comprehensive insurance policy.

Take some time to consider what level of cover you need. Also, make sure you compare the whole car insurance market as you may be surprised at which level of cover comes out cheapest.

Add an experienced second driver to the policy
Adding an experienced and older named driver to the policy is another effective way to bring down the cost. This way the insurer is reassured that the young person will not be the only one driving the car, which reduces the chances of an accident occurring.

However, be careful of ‘fronting’. The car must be in the name of the main driver of the vehicle, otherwise you are breaking the law and any claims you make will be turned down and your insurance invalidated.

new drivers insurance

Don’t pay per month
It may not be possible for many young drivers to fork out the cost for car insurance in one go, but if this option is open to you, take it, as you could pay less in total by not paying in monthly instalments.

Telematics/Black box insurance
If you’re a careful driver, telematics (or black box insurance as it’s also known) could be the right move for you.

A telematics box will be installed in your car (or an app installed on your phone) that can monitor how and when you drive.

The technology measures factors like speed, mileage and braking and paints a picture of how safe a driver you are. So if you’re a safe driver and stick well within the speed limits then you could get your hands on cheap young driver insurance.

In fact, drivers aged 17-21 with zero no claims could save an average of £1,282 by choosing black box insurance over a standard policy (based on quotes generated by uSwitch between November 2016 and January 2017).

Some black box policies work more like pay-as-you-go mobile phone plans, where you can top up the number of miles you plan to cover.

Read more about black box insurance in our guide.

Make your car secure
Make your car more secure by adding security features such as an alarm and try to keep it out of harm’s way as much as possible. If you can park your car off the street, or even better — in a garage, then you will very likely see the quotes fall in price.

New drivers insurance
It is not just young drivers that are faced with sky-high premiums, new drivers insurance is similarly expensive. Ultimately, it comes down to the providers taking a risk on your inexperience.

New drivers of any age are often cited in statistics that show them being more likely to have an accident than their more experienced counterparts.

This often means that new driver insurance is likely to have the high premiums often associated with car insurance for young drivers.