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Young Drivers' Car Insurance

How you could cut the cost of your car insurance premium

If you are a young driver looking to insure your first car, you probably already know that young drivers face some of the highest car insurance premiums around. What you may not know, is that there are a few things you could do to bring down the cost of car insurance in your first years on the road.

First of all, you may ask why insurance premiums are so high for young drivers and cheaper for older drivers. A look at the road accident figures helps explain why insurers see young drivers as a greater risk than drivers with more experience.

According to research by BRAKE, the road safety charity, one in eight drivers on Britain's roads are under the age of 25, but a quarter of drivers who die in traffic collisions are in this age group.

Association of British Insurers (ABI) figures show that male drivers aged under 21 are 10 times more likely to have a car accident than those aged 35 or over. This is twice the rate for female drivers of the same age, who are five times more likely to have an accident than women aged 35 or over.

Bearing these figures in mind, one of the most important things you can do as a young driver is to drive sensibly and concentrate on earning a no-claims discount on your insurance policy. Following the Highway Code and staying free of speeding tickets and insurance claims in your first year of driving may lead to a reduction in your premium when you come to renew your car insurance policy.

It may be tempting to save money by getting yourself added to mum or dad's car insurance policy as an additional driver of their car, but the sooner you have your own insurance policy, the sooner you can start earning your own no-claims discount.

Carry on learning

If you're prepared to carry on learning once you've passed your driving test, you can make a real saving on your car insurance. Insurers and brokers – including the AA – offer discounts of up to 35% off the first year's premium for young drivers who take the Driving Standards Agency's Pass Plus course. The course consists of six practical modules to improve your experience of driving in town, on rural roads, at night and on motorways and dual carriageways.

Choosing a car

As a young driver you need to think carefully about the car you're going to drive. You may be tempted by something sporty, but you could seriously reduce the premium you'll have to pay if you choose a small car with a low engine size.

The Association of British Insurers (ABI) advises on the car insurance groups used by insurers to work out premiums. You can search the ABI database to work out which cars may have cheaper car insurance premiums. The ABI assign each new model to a group from 1 to 20. Cars in the lowest groups are those which the ABI believes will cost insurers less in insurance claims.

It's worth noting that cars are now being assigned to a new set of 50 groups, alongside the existing 20. The move to 50 groups means that each model of car can be more accurately banded with similar cars. Some insurers are now using 50 groups in their premium calculations. If you need to look up a car on the ABI database you will find group numbers out of 20 and 50 for many models.

Car security

Thinking about the security of your car could help you reduce your premium. If you can avoid it, don't keep your car on the street, if possible keep it in a locked garage overnight. If the street is your only option, think about installing an alarm or an immobiliser. Insurers can advise you which security devices to fit. Also, make sure you take any stereo or sat nav equipment with you when you lock your car. Leaving valuables in the car could attract thieves. It's also worth remembering to lock up when you're going to pay for petrol or popping into your local shop.

Choosing a car insurance policy

Finally, when you're searching for a policy, make sure you compare like with like. Two car insurance policies with the same price may not offer the same level of benefits, so it's always worth checking to see whether the policy covers everything you need. If you think you've found a bargain, always look closely at the detail, the cheapest policy may not offer cover that's right for you.

At the AA we're committed to treating young drivers fairly, and through our support of schemes like Pass Plus, actively encourage initiatives to help new drivers become safer drivers.

Learn more about how you could get cheaper car insurance