MoneyMagpie

Jun 04

Cheap car insurance for young drivers

Getting cheap car insurance for young drivers is a huge challenge.

According to the AA, insurance premiums have increased by 40% over the last two years for 17–22-year-olds. We’ve even seen quotes for young male drivers reach a ridiculous £8,000-plus a year! One of the most regular questions we get asked is “how can I save money on car insurance?” so we’re revealing all here!

 

 

How to get cheaper car insurance for young drivers

The average standard premium for a male aged 17–22 is now over £1,850. Young women generally pay less, but still face hefty average costs of just over £1,460.

But there is a way to reduce the premium you pay – by getting car insurance based on ‘black box’ technology.

‘Black box’ insurance involves having a monitoring unit invisibly fitted to your car (it’s normally located underneath the dashboard) which monitors your driving behaviour (your braking, acceleration, cornering, speed and so on). It’s not a million miles away from the infamous black boxes that are used in aeroplanes.

insurance for young drivers

All this data is then used to calculate your insurance premium; smooth driving will result in lower premiums, while someone who frequently jams on the brakes and goes round corners on two wheels will see their premiums rise significantly.

The aim is to reward careful driving, whatever your age.

With Direct Line’s black box car insurance drivers under 21 can benefit from an upfront discount of up 25% on their car insurance and drivers aged 21-25 can get at least a 15% discount.

Co-operative Insurance claim that their Young Driver policy (which uses their ‘Smartbox’ system) could save 25% of under-25s £704 on their initial premium. The Co-op also offer up to 70% no claims discount.

(As an added bonus, if your car were to get stolen, the GPS technology of the black box would enable the police to quickly track down your vehicle).

Of course, making any saving is dependent on being a good driver! After you’ve signed up, you can log in to a website and check your driving stats on a day-by-day basis to see how you’re performing.

Case StudyTom Mason from Bromsgrove, 18Tom Mason started driving his Peugeot 106 when he was 17.Having received staggering quotes of £15,000 or more on some comparison sites, Tom opted for the Co-op’s Smartbox’ policy. This originally cost him just over £2,000 (with Tom as the named driver).However, Tom drove so carefully over his first 12 months that the Co-op cut the cost of renewing his policy to just £837.If you want to see how much your premium would be, you can get a quote from the Co-op.

 

Direct Line offer DrivePlus telematics insurance – also known as black box car insurance – which is insurance designed to capture how, when and where your car is driven. Drivers under 21 can benefit from an upfront discount of up 25% on their car insurance when they buy the black box car insurance and drivers aged 21-25 can get at least a 15% so it’s worth checking them out.

Click to find out more!

 

But don’t forget to shop around…

Although specialist policies like the Co-op’s will often give young drivers the best deal, it’s still worth getting some quotes from the big comparison sites.

Put aside 15 minutes and try the Moneymagpie car insurance comparison tool. It’s quick, easy to use and compares all the top providers.

There are also some big insurance players who aren’t covered by comparison sites at all.

Our pick of the best offers (that aren’t on comparison sites) are:

 

dlDirect Line

Direct Line offer DrivePlus telematics insurance – also known as black box car insurance – which is insurance designed to capture how, when and where your car is driven. Drivers under 21 can benefit from an upfront discount of up 25% on their car insurance when they buy the black box car insurance and drivers aged 21-25 can get at least a 15% so it’s worth checking them out.

Aviva

Aviva are currently offering a 20% online discount*. Plus their premiums are as low as £198 to start with. Check out Aviva’s deal.

*Discount depends on individual circumstances and does not apply to optional extras. Minimum premium applies.

 

Kwik Fit

Kwik Fit offer a 20% online discountNot only is it potentially a very good discount, but their customer service has won quite a few awards (it’s important you get good service as well as a good price).

 

BeWiser

BeWiser gives you free breakdown cover with all its car insurance policies.

 

 

 

 

Tips to reduce your insurance costs even further

There are certain things you can do to reduce the cost of your insurance – whatever your policy.

You can reduce your insurance premium by:

  • Fitting a security device to your car (preferably one that is Thatchum approved).
  • Parking your car in a garage (as it reduces the risk of both theft and accidental damage).
  • Adding a mature second driver to the policy can sometimes knock hundreds off your premium – even if they’re not down as a ‘main’ driver. (A word of warning: don’t ever be tempted to lie and put someone else down as the first named driver to try and cut the cost. Not only would it invalidate your insurance, it’s illegal and could even lead to prosecution.)
  • Taking an additional driving course, such as Pass Plus.

 

 

What type of cover should you go for?

There are three main types of car insurance cover:
  • Third party: this is very basic cover that only covers damage that you (or your passenger) cause to another person or property. It doesn’t cover you against any damage to your vehicle (or yourself)
  • Third party, fire and theft: as above, but this cover will repair or replace your vehicle if it’s damaged or destroyed by fire or stolen
  • Comprehensive: this extends third party, fire and theft to also cover damage to your own vehicle should you have an accident.
Is third party cover always cheapest?

People automatically assume that basic third party cover will be the cheapest option – but this isn’t always the case (some insurers probably see drivers who only get third party insurance as being less likely to care about their vehicle and more likely to get into scrapes).

Third party is often cheaper of course – especially if your car’s worth less than £1,000 and you don’t already have a no-claims bonus – but it’s still worth getting a quote for both third party and comprehensive cover to check.

What about learner drivers?

insurance for young driversTemporary car insurance is often the most cost-effective and practical method of insurance for learner drivers.

It’s also a great option if you’re a parent with kids who are learning to drive in your car (as it means they can drive your vehicle without putting the no-claims bonus on your main insurance policy at risk).

We recommend the insurance company Provisional Marmalade for young drivers. They insure drivers as young as 17 – a lot younger than most other insurers are willing to go.

They’re cheap too, with their prices starting from just £2.30 a day. This is surely preferable to putting a young driver on your own policy, which could see your premiums rocket.

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