Car insurance premiums for young drivers in the UK are typically much higher than for older drivers, reflecting the greater risk insurers associate with inexperienced motorists. According to Go.Compare, drivers aged 17 to 24 pay an average of £828 annually—nearly double the £476 paid by those aged 25 to 49. However, there are several strategies young drivers can use to reduce their insurance rates.
Check Prices Early
Start comparing car insurance quotes 3 to 4 weeks before your policy begins. Using comparison sites like Go.Compare, MoneySuperMarket, Confused.com, and Compare the Market can save you hundreds by showing rates from multiple insurers at once.
Add an Experienced Driver
Including a parent or experienced driver as a named driver on your policy can lower premiums, as it spreads the risk. Make sure the additional driver occasionally uses the car, and avoid “fronting” by falsely naming someone else as the main driver, as this is illegal.
Pick the Right Car
Choose a smaller, less powerful vehicle in a low insurance group to keep costs down. Popular cheap-to-insure models for young drivers include the Volkswagen up!, Suzuki Alto, and Fiat 500. Buying secondhand cars in good condition with a full service history also helps reduce expenses. Avoid modifications, as these often increase premiums.
Consider a Black Box Policy
Telematics insurance uses a device or app to monitor driving behavior, rewarding safe driving habits with lower premiums or cashback. For example, a 19-year-old with telematics pays a median £864 per year, compared to £1,096 without. However, risky driving can increase your premiums, so drive carefully.
Avoid Automatic Renewal
Don’t simply accept renewal quotes. Always shop around using comparison sites and then ask your current insurer to match or beat the best price you find.
Pay Annually If Possible
While monthly payments may be easier to manage, they often include interest charges up to 30% APR. Paying your premium annually is almost always cheaper. If you can’t pay upfront, consider a 0% interest credit card, provided you pay it off before interest accrues.
Improve Security
Where you park your car affects your premium. Driveways, private gated parking, or buildings with fob-controlled access are preferred over street parking. Adding security features like steering wheel locks, immobilizers, or dashcams can further lower insurance costs.
Tweak Your Job Title
Your job title can impact premiums. Using a truthful but less “risky” job description (e.g., “writer” instead of “journalist”) might reduce your costs. Tools like MoneySuperMarket’s “car insurance job picker” can help you find the best match.
Increase Your Excess
Raising your voluntary excess—the amount you pay toward a claim—can reduce premiums. However, only increase it if you can comfortably afford to pay that amount if needed.
Build Your No-Claims Discount
A no-claims discount rewards you for claim-free years, reducing your premium by 20% to 30% after one year and up to 60% after five years. This discount is tied to you, not your car, and can usually be transferred if you switch insurers or vehicles. Even if you make a claim, your discount may not be lost if you weren’t at fault.
By applying these practical tips, young drivers in the UK can find trustworthy insurance options and manage their car insurance rates more effectively, easing the financial burden while gaining valuable experience on the road.
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