Buying your first car is a big moment. But the upfront price is only part of the picture. There are ongoing costs to think about too – from insurance and fuel to maintenance and repairs. Understanding these early can help you plan ahead and stay in control of your budget.
Here’s a clear guide to the main costs to expect as a new driver.
Running costs you can't avoid
Car insurance
Car insurance is a legal requirement if you want to drive on UK roads. The price you pay will depend on things like your age, where you live, the vehicle you drive and how you use it.
It’s worth comparing policies carefully. Price matters, but so does what’s included. Make sure the cover you choose suits your needs and the way you drive.
For new drivers, premiums are often higher at first. Over time, if you drive safely and don’t make a claim, the cost may reduce as you build up a no claims discount.
How to help lower your premium
There are a few ways you might be able to reduce the cost of your insurance:
Consider telematics (black box) insurance
This type of policy tracks how you drive, including things like speed, braking and acceleration. Safer driving could help lower your premium over time, depending on the insurer and policy.
Choose a voluntary excess you can afford
Increasing your voluntary excess may reduce your premium. But it also means you’ll pay more if you need to make a claim, so it’s important to choose an amount you’re comfortable with.
Add an experienced named driver
Adding a more experienced driver, such as a parent, can sometimes reduce the cost. But the main driver must always be the person who uses the vehicle most. Misrepresenting this is known as fronting and could invalidate your insurance.
For help finding and choosing the policy that's right for you, see our guide to buying car insurance.
Car tax
Officially known as Vehicle Excise Duty (VED), it’s more commonly referred to as car tax. The amount you pay depends on when your vehicle was first registered.
- Vehicles registered before 1 March 2001 — VED is based on engine size
- Vehicles registered between 1 March 2001 and 31 March 2017 — VED is based on CO₂ emissions, which you can find on the V5C registration document
- Vehicles registered from 1 April 2017 onwards — Most vehicles pay a standard annual rate, which can vary depending on the vehicle and fuel type
Some vehicles, including certain low-emission vehicles, may have a lower rate or be exempt. It’s worth checking the latest rules, as these can change. An additional charge applies to vehicles with a list price over £40,000 for the first five years of standard-rate payments. We recommend checking how much car tax will cost before choosing your vehicle.
Read our guide on car tax or check rates at GOV.UK.
The MOT
The MOT checks that your vehicle meets minimum road safety and environmental standards. If your vehicle is over 3 years old, it will usually need an MOT every year. You must have a valid MOT certificate to drive legally, unless you’re travelling to a pre-booked test.
Keeping your vehicle well maintained can help it pass first time and avoid unexpected costs.
Fuel
Fuel is one of the most regular costs of driving. How much you spend will depend on how often you drive, the type of vehicle you have, and how efficiently you drive. Small changes in driving style can make a difference. Smooth acceleration, steady speeds and well-maintained tyres can all help improve fuel efficiency.
Other costs to think about
Owning a vehicle comes with a range of additional costs. These can vary depending on your vehicle and how you use it.
Servicing and maintenance
Regular servicing helps keep your vehicle running safely and efficiently. Most vehicles need servicing at least once a year, but always check the manufacturer’s recommendations.
Tyres
Tyres are essential for safety and performance. How long they last will depend on your driving style, vehicle type and road conditions.
Repairs
Over time, parts will wear out and may need replacing.
Breakdown cover
Breakdowns can happen when you least expect them. Breakdown cover can help you get back on the road or recover your vehicle if something goes wrong.
Depreciation
Most vehicles lose value over time. This is known as depreciation.
Final thought
Running a vehicle comes with a range of costs, but understanding them early can help you plan ahead with confidence.
With the right cover, regular maintenance and careful driving, you can stay in control of your costs and focus on enjoying the journey.
