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First time car insurance

First car insurance for new drivers

What new drivers need to know about getting their first car insurance policy

With your new driving licence in hand, you’ll probably be raring to get behind the wheel. Along with buying a car, getting car insurance is an essential part of starting to drive. As insurance for new drivers is generally more expensive, it’s always good to shop around for the best quotes. Here are our suggestions for buying your first policy and our top tips for reducing the price of your premium moving forward.

Fist time car insurance

Buying car insurance for the first time

There are lots of different options available when buying car insurance and some of the options available may seem a little confusing. First things first, why not weigh-up how and when you plan on using your car and then look at quotes based only on that information. As a starting point, you’ll need to decide on either third party, fully comprehensive or third party, fire and theft (TPFT). You can read more about these in our article about the different types of car insurance and to make things as clear and straightforward as possible, check out our car insurance jargon buster too.

There are different things an insurer will look at before deciding on your first premium, including:

  • How often you use the car.
  • The number of people using the car
  • Where you park it at night.
  • Credit scores.
  • Your age, profession and where you live. 
  • The age, size, engine, value and model of the car. 

Up to 20% of new or young drivers are involved in an accident within a year of getting their licence. This is part of the reason why new drivers usually end up paying more than an experienced driver.

What's more, no matter who you choose to insure you car with, you'll also be charged a compulsory Insurance Premium Tax (IPT). The rate of IPT added is a percentage of your premium (currently 12%, June 2017). So in monetary terms, first time drivers are often hit the hardest because they're already paying higher prices for their premium.

What cars are the cheapest to insure for first time drivers? 

You might find yourself paying high premiums for your first car, but the model can make a difference. There are certain types of cars you should avoid if you want to lower your premiums.

Imported, modified and cars with big engines will see your premiums rocket. They tend to be faster and are suited to more skilled drivers, and they're usually more expensive to repair.

You can check what insurance group your potential new car belongs to before you even test drive it. This will let you see how the cost of running it measures up against your income.

First time driver insurance tips

There are a few things you can do to keep your insurance costs down. In the long term building up your no claims bonus can help lower your premiums and some insurers may offer a discount for installing a dash cam.

Another option is to buy black box insurance (also known as telematics insurance) which gathers information which is used to work out how safely you drive. If you're a safe driver, you could see a discount on your car insurance premium at your renewal.

It's also worth bearing in mind that the cost of your car insurance could be lowered by paying for the policy in one lump sum, rather than monthly installments. By paying yearly, you could save as much as 11% so if you have the funds available, this might be a good option.

Is it cheaper to be a named driver?

Purposely switching a main and additional driver on an insurance policy to get cheaper rates is known as fronting and should be avoided at all costs – it’s against the law.

However, there are certain scenarios where being a named driver might be a more appropriate option. For example, if you don’t have your own car you might plan to use your parent’s vehicle every now and again. This won’t necessarily make the premium cheaper, but it’s cheaper than getting your own cover.

If you do own a car and are the named main driver, you can add a named (or additional) driver to the policy. It could cost you less but that will depend on who (age, driving history, etc.) the other person is. It's also worth remembering that there’ll usually be a mid-term adjustment fee involved to amend a policy mid-term so you might want to factor this in too.

Take a look at our page for more information on the different types of insurance available or to get an online insurance quote, check out our car insurance page. We've also got a few top tips on getting cheaper car insurance for young drivers.

Car insurance for £165 or less

That's what 10% of our new customers pay*

* Survey of new business sales from TheAA.com, Mar 2017 to May 2017. Prices based on comprehensive cover only.