Young drivers face higher insurance costs, and this can make it difficult for many young people to afford to drive. We’ve written this guide to help you navigate this challenging situation.
Below, we’ll explain why car insurance is so expensive for young drivers and share 10 ways you can try to make your car insurance cheaper.
Why is car insurance so expensive for young drivers?
Insurance providers calculate premiums based on risk. Any driver under the age of 24 is classed as a ‘young driver’, and you’re seen as being riskier on the road if you fall into this age group. With less driving experience, you’re more likely to have an accident and make an insurance claim – which would cost your insurer.
This reasoning might seem unfair but there’s evidence to back it up. To illustrate this, 2021 road casualty statistics released by the Department for Transport show that collisions involving young car drivers accounted for one-fifth of all fatalities. The most common contributory factors of collisions also suggest that young drivers are more likely to drive unsafely compared to other age groups.
Statistics also show that young drivers are more expensive for insurance companies. 2021 data published by the Association of British Insurers shows that the cost of the average insurance claim for a young driver is higher than for drivers aged 26-75. Young drivers also make claims more frequently on average.
From a business standpoint, this means that insurers need to charge young drivers more as a group – simply to offset the cost of insuring them.
10 ways to make car insurance cheaper as a young driver
There are valid reasons why car insurance is more expensive for young people and things aren’t likely to change. Until you’re older and have more driving experience, you’ll have to pay higher-than-average premiums if you want to get behind the wheel.
But that doesn’t mean you shouldn’t try to get the best deal possible in the meantime. In the sections below, we’ll share 10 ways to lower your insurance costs as a young driver.
1) Limit your mileage
The more driving you do, the greater the chances of you having an accident. That’s why insurers tend to see people who drive more miles as being a greater risk to insure.
This means you can make your insurance cheaper by driving less. Find alternatives for journeys that you don’t need to drive for. Take public transport where possible and, especially for short distances, try walking instead.
Remember to always give an accurate estimate of your mileage when you get a quote. Being dishonest about how much you typically drive can invalidate your policy if you need to make a claim.
2) Improve security
Since cars that aren’t secure are easier to steal, insurers usually consider the security of your vehicle when calculating the price of your insurance. This means that you could lower your premium by keeping your car more secure.
You should look at both the security of the inside of your car and where you keep it when you’re not using it. Consider using security devices such as special alarms, immobilisers, or locking wheel nuts. And make sure that you park your car somewhere safe at night – ideally on your drive or in your garage if you have one.
3) Add experienced drivers
Joining a parent’s policy is one way to insure a young driver, yet it could be more beneficial to add them to your policy. If you share your car with a driver with more experience than you, insurers see it as less at risk. Consider adding experienced family members with clean driving records to your policy. Bear in mind that the more experienced driver will need to drive the car for the insurance to be valid.
4) Take advanced courses
Taking advanced driving courses after you’ve passed your test can help you get discounts with some insurance providers.
You could take Pass Plus, practical training from the Driver & Vehicle Standards Agency (DVSA) that helps new drivers drive more efficiently and safely. Alternatively, you could take an Advanced Driver course from IAM RoadSmart – an advanced course that helps you improve your skills and grow your confidence.
Before you sign up for any advanced driver courses, double check with your provider whether they’d give you a discount. You should also weigh up how long it will take the insurance savings to outweigh the cost of the course.
5) Increase your voluntary excess
The excess on your insurance policy is the amount that you must pay when you make a claim. It’s made up of two parts. First there’s the compulsory excess, which is the minimum amount set by the insurance provider. Then there’s the voluntary excess, where you choose the amount for yourself.
Choosing higher voluntary excess can help you save on the overall price of your cover. Just bear in mind that you’ll need to pay more excess in the event of a claim, so be sure to choose an amount you’re certain you can afford.
6) Use a black box
A black box, or telematics, policy rewards safe drivers with lower insurance costs. A black box is a device that monitors your driving behaviour, looking at factors including:
- The time of day you drive
By having a black box installed in your car, you can build up a record of safe and sensible driving.
Although this is unlikely to make your initial policy less expensive, you should receive cheaper premium offers at renewal time. However, this will only be the case if you’ve been driving well. If you’ve driven unsafely, then your insurance cost could go up instead of down – and your existing policy could even be cancelled.
7) Choose a cheaper car
The make and model of your car is another factor that influences insurance prices. Every car is put in ‘insurance groups’ ranging from 1 to 50, with insurance for cars in group 1 being the cheapest and insurance for group 50 being the most expensive.
The more powerful, rare, or expensive your car is, the higher the group it will be in. Make sure you know the insurance group of a car before you buy it. You can secure a cheaper insurance premium by opting for a more modest model.
8) Remove unnecessary add-ons
Many insurance policies come with unnecessary add-ons that drive up the price of your cover. You may simply not need certain extras, such as cover for audio equipment or driving abroad. It may also be cheaper to separately buy some add-ons that you do need, as is often the case for breakdown cover. Go through the add-ons included in your policy and consider whether you can do without them.
9) Avoid car modifications
Making modifications to your car is likely to increase the price of your insurance. Performance modifications can change the way your car handles, and aesthetic modifications can make your car a more attractive target for thieves. In either case, insurers will see insuring your vehicle as a greater risk.
10) Only get as much as you need
If you don’t drive often, then paying for an annual policy might not be the most cost-effective option. It could be cheaper for you to get cover for exactly as long as you need using temporary insurance.
Perhaps you need to borrow your parents’ car to run an errand every so often or like to share the driving during long journeys. Temporary insurance covers you for a short period of time, letting you get behind the wheel when you need to – without paying for an expensive annual policy you don’t use.
Get short-term cover with Dayinsure
While there’s no way to get cheap cover as a young driver, choosing the right options can help you lower your insurance costs.
Dayinsure can offer you short-term car insurance from one hour up to 30 days, including temporary car insurance for young drivers . The flexible and competitive policies you take out with us let you get cover as and when you need it, avoiding costly annual policies.
What’s more, you can take out a policy in less than 30 minutes! So, what are you waiting for? Get a no-obligation quote now and find out how quickly you can get affordable cover.