Insurance for Young Drivers

There are many things to consider when you are looking to buy your first car, especially if you are a young driver.

Before you start going to see cars for sale, you need to ensure that you have thought about a few things first!

Insurance for young drivers
  • Will it suit your needs?
  • How expensive will it be to run?
  • Have you an idea of what is a good price based on the make, model, mileage and condition of the vehicle?
  • Is it safe to buy? (Check for any outstanding finance and it is not a stolen car or a previous write off)
  • Will you be able to get insurance for the vehicle you are interested in buying?

Car Insurance for young drivers

Young drivers (under 21 years old in particular) will need to look for a vehicle which is a low insurance group, therefore have engine sizes that are not too big.

Many small hatchbacks have engines around 1Lt to 1.4 Lt which would normally be classed as a low insurance group and suitable for young drivers. There are 2 levels of insurance to choose from, which will depend a lot on your budget for your vehicle.

Third party Fire & Theft (TPF & T) covers:

  • Damage caused to other people, their vehicles and their property
  • The cost of repairing other vehicles
  • Third-party medical treatment costs
  • Legal claims made against you as a result of an accident
  • Theft of your car
  • Fire damage to your car

Fully comprehensive cover:

The main benefit of comprehensive insurance is that in addition to all that covered under TPF & T mentioned above; you will also be covered for accidental damage to your own vehicle and for malicious damage.

For this reason, TPF & T cover is best for lower-value cars only. If you get a car that you couldn’t afford to have repaired or replaced out of your own pocket, you may want to consider a fully comprehensive policy that provides cover for expensive repairs, especially if you are taking out a loan or getting your vehicle on finance.

Young driver’s insurance premiums are high as unfortunately they pose the highest risk of being involved in an incident and therefore more likely to make a claim off the insurance.

Youth and inexperience are both seen as a significant risk; however, the risk factors are seen as substantially higher for young drivers. Those under 21 years old typically receive the highest insurance premiums.

Department for Transport data shows that one fifth of people killed or seriously injured on Britain’s roads in 2012 involved a young driver.

Nearly a quarter of all car drivers (133 out of 542 drivers) who died in 2012 were young drivers themselves.

Young drivers will often have a high excess which you should also take into consideration when deciding on what level of cover makes more sense.

Let’s say your excess is £500 for example, if your vehicles market value was just £700 and you caused an incident where it gets written off or in insurance terms is deemed a total loss, after your excess is deducted from the settlement figure, you may only end up with £200.

In this case, you wouldn’t have been much worse off than if you had taken out the cheaper TPF & T insurance cover.

The higher the value of your vehicle, the better option is for fully comprehensive insurance.

If you are caught driving without insurance there is a maximum £5000 fine.

Tips on getting reduced insurance premiums

Pass Plus

Pass Plus

If you are a young driver, the experience gained from completing the Pass Plus course can sometimes ensure you receive a more favourable quote from car insurance companies.

You can learn more about the Pass Plus by clicking the link below.

Choice of Car

The engine size, make of car, its age and value are all used in calculating insurance quotes.

Car modifications are not looked upon favourably by insurers, so they are best avoided.

Increase Voluntary Excess

The excess is the initial sum of money that you the policy-holder will pay towards the cost of any claim on your car insurance. By raising the excess level not only will you pay more towards any claim, but would be less likely to put in for a small claim, therefore reducing the risk attached to you in the eyes of the insurer. Normally, the lower the risk you are the lower the insurance premium is likely to be.


Reduce the risk of theft by parking your vehicle off-road. Garages and driveways are a big deterrent to thieves, so if you are able to park your car safely in either of these then it's always advisable to do so. This alone can save you 5% on your car insurance.

Car Security Devices

Any extra security measures you take to deter thieves from stealing your car will further decrease the risks you pose to the insurance company, such as having an alarm fitted, immobiliser and steering lock.

Build No Claims Discount

In most cases having a no claims bonus is probably the most reliable way of reducing the cost of car insurance; therefore, try and build your no claims discount as soon as possible. You will have your own car insurance policy before you can build your discount and for young drivers this will seem expensive, but the sooner you build your discount the sooner you can start to enjoy the benefit it gives on your car insurance.

Named Drivers on Insurance Policy

Young drivers might get a better quote by adding someone older or more experienced to their car insurance.

Young Drivers Age Thresholds

If you have a birthday looming, then wait until you have it before applying for car insurance if possible as most insurers will use key birthdays as thresholds to cheaper insurance. So, when taking out car insurance if you bought the policy after your birthday and not before, on paper you will always appear one year older. Over time this could save you money as you will reach those important insurance thresholds earlier (21 years old – 25 years old).

Don’t lose your licence!

Your licence will be revoked if you get 6 or more points within 2 years of passing your test.

This could be the case if you receive 2 speeding convictions, so be careful especially after leaving a fast road where you may be travelling faster than you think!

Check this link for full list of "Endorsement codes and penalty points":

Points on your provisional licence

Any penalty points on your provisional licence that haven’t expired will be carried over to your full licence when you pass your test. However, your licence will be revoked if you get any further penalty points that take you up to a total of 6 or more within 2 years of passing your driving test.

If your licence is revoked within 2 years

You’ll have to apply and pay for a new provisional licence and pass both theory and practical parts of the driving or riding test again to get a full licence.

If you pick up speeding tickets or, even worse, a conviction for using a hand held mobile phone, premiums will increase and you may find some insurance companies won’t offer you cover.

The number of people who get caught drink driving is alarmingly high, if you drink and drive it is likely that you will be caught and it is a mandatory ban of at least 12 months.

Not many people set out to drink and drive; it is always best to leave your car at home when going out to a bar or club. That way you don’t run the risk making a stupid decision to drive once intoxicated and not thinking straight!