Young & New Drivers Car Insurance

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Young & New Drivers Car Insurance

If you’re a young or newly-qualified driver, you are much more likely to experience high car insurance costs. Insurers will usually charge young drivers (aged between 17 and 24 years of age) and new drivers higher premiums than more experienced motorists. This is because young and new drivers are considered a greater risk and more likely to be involved in a collision or accident.

This guide will explain why young and new drivers are faced with higher insurance premiums, and suggests practical ways of reducing those costs - by using black box car insurance, for example.

Passing your driving test can come at a hefty price, as finding cheap insurance for new drivers can be difficult and often expensive. 

However, there are ways to reduce costs and save money. Let’s take a closer look at why car insurance for new and young drivers is higher than for other motorists, how a black box policy works, and the types of car insurance available to you.

Safer drivers save money
With Black Box Insurance, drive carefully and  your premium could be cheaper at renewal

Free Breakdown Cover
RAC Black Box Insurance comes with FREE RAC connected breakdown cover, if selected*

Enjoy the benefits of Black Box Insurance
No curfews, choose your own mileage limits, and more - more details here

Black Box Car Insurance helps young and new drivers save money by rewarding safe driving



Why is car insurance so expensive for young drivers?

The reason car insurance is usually so expensive for young and new drivers is simple - they are statistically more likely to be involved in an accident than experienced drivers, so there is a higher risk involved in insuring them.

It may seem unfair, but it makes sense and is supported by statistics. Research shows that there’s a higher probability of newly qualified drivers being involved in an accident within the first year of passing their test. This is why the annual cost you pay for insurance (also known as a premium) is so high.

Your age is one of the main factors for pricing up young drivers’ car insurance but there are other categories you may not have realised insurers use.

Some may include:

          Your occupation: some jobs will have you spending more time on the road or in areas that insurers deem risky. This is why it’s important to be as accurate as possible when describing your occupation. 
Your vehicle: The more expensive your car is, the more it will cost to replace; but the older your car is the more unreliable it may be. Even if your car was cheap to buy, insurers will take into account how safe they believe it to be on the road. Insurers will also look at how desirable your car is, and so how likely it is to be stolen or broken into. If your car has a big engine this can hike the price up, as it has more power.
 
Your postcode: where you live plays a part in price. If you live in a built-up area, the risk of accidents are a lot greater than in the countryside where the roads are quieter.
 
How often you’ll use the car: if you plan to use your car every day for work, or commuting, you can expect to pay more than if you just use your car on the weekends.
 

How to reduce the cost of car insurance for new drivers

Even though it is a necessity, new driver car insurance is an expensive bill to fork out for. You’ll find that the cost of insurance will only dramatically improve once you’ve become a more experienced driver. However, there are ways to get cheaper insurance for young drivers. For example, you may find that insurance will vary depending on the make and model of your car, and the size of its engine.

If you can afford to pay the full annual fee in one go, it can save more than paying monthly. This is because an insurer will only need to charge a one-off admin fee and no additional monthly interest payments which can add up.

When applying, it’s important you answer all the questions as honestly and as accurately as possible. Here are some other ways you can get cheap car insurance for new drivers:


  • Black box technology: also known as telematics, black box technology can be a cheap car insurance option. It’s so popular because it rewards new drivers on the safety of their driving. 
  • Increase your voluntary excess: when you’re getting a quote for car insurance you’ll be asked how much you’re comfortable to pay should you need to claim. This is called voluntary excess and can be as little as £0. If you increase the amount you pay towards any repairs that may need covering, you’ll find that your overall premium will decrease. Voluntary excess is only paid when you make a claim on your insurance.
  • Add a second driver: if you add an older, second driver to a young driver policy your premium may come down. This is because a more experienced driver will be seen to use the car for some of the time. It’s important that the second driver does actually intend to use the vehicle, so you don’t invalidate your insurance. If a young driver is added onto a more experienced driver’s policy (as a second driver), but the younger driver uses the car more frequently than the named driver, you could be committing fraud. This is called fronting and it’s illegal - find out more here.
  • Ensure your car is safe and secure: the safety of the vehicle is determined by how it’s stored when it’s not being driven and the level of security the vehicle has. If it’s fitted with an alarm, immobiliser or another validated security device, it may help reduce insurance costs. The higher the rating of security system, the more likely you are to save on your premium. Find out more information on the official Thatcham’s alarm categories here.


What type of policy should I choose?

Understanding the right car insurance for new drivers can be a confusing process. There are three main policies you should know about before committing to an insurance provider. You need to choose the right insurance to suit your needs, and they vary in price. This is why finding cheap car insurance for young drivers can be so challenging.

 

Comprehensive car insurance

Comprehensive car insurance is the highest level of cover and includes both third party and third party, fire and theft insurance. It also provides financial protection for any damage caused to your own vehicle, even if the accident was not your fault. This type of cover offers the most amount of protection for you, your passengers, your vehicle and others on the road. Policy packages do vary by insurer, so make sure you read all documents before signing up.

 

Third party, fire and theft insurance

Third party, fire and theft insurance is the next level up from basic. This covers the repair costs to your own car if the accident was not deemed your fault. It also covers you for fire damage and if your vehicle is ever stolen.

Third Party Insurance

This is the most basic insurance that meets the minimum legal requirement. This policy tends to be the cheapest out of the three because it offers less financial protection for the driver and the cover is very limited. This type of insurance will only pay for damage caused to other drivers’, passengers’ and pedestrians’ property, or any compensation for injuries in an incident judged as your fault. This means third party insurance would not cover the cost of repairs for your vehicle or provide any funds to support legal fees or compensation. It won’t pay out if your vehicle is ever stolen or damaged by fire.

 

Why is a black box policy so good for new drivers?

New driver insurance can be extremely pricey, so finding any way to reduce the cost can help young drivers to get out on the road. Having a black box fitted can decrease the price of young driver car insurance.

A black box, about the size of a smartphone, is fitted to your car. It’ll run reports on your driving behaviour and builds a picture of how you drive for your insurer. It’ll check things like the speed, distance and time of day you’re travelling at. It can also check on how you travel around corners, and your braking and acceleration. What’s great is you’ll be able to access all reports to see how you’re performing and then make improvements in any areas you need to. Our RAC Black Box Car Insurance has no curfews, and you can choose your own mileage limit when you get a quote and buy. It gives you the control and the freedom to drive where and when you want.

 

Frequently Asked Questions

Can I get insurance on my parents’ policy?

If you hold a full driving licence or provisional licence, you can be added onto your parents’ existing policy. However, when you become a named driver on your parents’ insurance you can’t be the most frequent user. It’s illegal for you to be a named driver on a more experienced driver’s licence if you plan to use the car more than they do. 

 
How do I get new driver insurance on a family car?

A way to help combat the expense of young driver insurance is to have yourself added as a named driver on your family’s car. You must not use the car more than the primary driver on the policy, as this could be classed as fraud. To add someone to an existing policy you’ll need to ring up your insurance provider. 

If you’re an RAC customer, our customer services team will be able to assist. Please call on 0330 159 1031.

How much would it cost to add my son/daughter to my insurance?

The cost to add a named driver onto an existing policy will vary depending on the insurance provider. 

If you’re an RAC customer, call our expert team on 0330 159 1031 for a quote.

Do I have to use a black box as a young driver?

It’s not a legal requirement for a new driver to use a black box. But, you may find that car insurance for young drivers with a black box is cheaper than without. Find out more about RAC Black Box Car Insurance.

 
What is the cheapest car to insure for young drivers?

Car insurance for young drivers is particularly expensive but the price can decrease depending on their chosen vehicle. A powerful car, with a bigger engine and a fast acceleration will typically cost more than a modest car. 

 
What is the cheapest insurance group?

Each new car model is assigned an insurance group from 1 to 50 – the lower the grouping, the cheaper the car should be to insure. Cars in the higher groupings tend to be performance vehicles which are likely to cost the insurer the most when it comes to claims. It’s certainly worth bearing in mind which insurance group any new car falls into before purchasing. Find out more about Car insurance groups.

 
Why is car insurance so expensive without NCD?

Having no No Claims Discount (NCD) says to an insurer that you either have very little experience driving and haven’t been able to build any NCD up, or that you have claimed recently and lost any NCD you previously had. Either could mark you as a bigger risk to insurers than other road users.

 

*Terms and Conditions: 

1. This offer applies to new annual RAC Black Box Car Insurance policies and is not available to customers renewing or amending an existing policy.

2. RAC breakdown cover is attached to the car insurance policy and will end if the car insurance policy is cancelled or not renewed. Unless opted out, your RAC breakdown cover will automatically renew alongside your car insurance policy and will become chargeable using the payment details supplied when taking out the insurance.

3. The breakdown offer will consist of a 12-month single Vehicle Based UK Roadside Membership for the same car as insured through RAC Black Box Car Insurance. Connected breakdown comes as standard on UK Roadside and all other levels of breakdown cover.

4. To take out this offer the customer must select the correct breakdown option, at a cost of £0.00, during the purchase journey.

5. This offer is not available to existing RAC Members.

6. The offer cannot be transferred to any other policy and there is no cash equivalent available.

7. We reserve the right to amend or withdraw this offer at any time.

8. RAC Breakdown and connected breakdown services are provided by RAC Motoring Services, registered No 01424399. Standard terms and conditions for the breakdown cover will apply and can be found here. Terms & Conditions for RAC Black Box and connected services can be found here.

RAC Insurance is a trading name of RAC Financial Services Limited. Registered in England and Wales No. 5171817. Registered office: RAC House, Brockhurst Crescent, Walsall, WS5 4AW. RAC Car Insurance and RAC Home Insurance are arranged and administered by BISL Limited, which is an independent intermediary. Registered in England no. 3231094. Registered office: Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS. Both companies are authorised and regulated by the Financial Conduct Authority.

Breakdown cover provided by RAC Motoring Services (Registered No 01424399) and RAC Insurance Ltd (Registered No 2355834). Registered in England; Registered Offices: RAC House, Brockhurst Crescent, Walsall, WS5 4AW. Arranged, sold and administered by RAC Motoring Services who is authorised and regulated by the Financial Conduct Authority in respect of insurance mediation activities only. RAC Insurance Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

 
 

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