Teenage girls driving

Why is car insurance so high for teenagers?

As a teenager, passing your driving test is the epitome of freedom and independence. Being able to hop in your car and drive anywhere you want whenever you want is truly liberating, and not having to rely on public transport or a parent to drive you around is an amazing feeling.

But unfortunately, the cost of car insurance is considerably higher for teenagers and young adults, which makes it increasingly difficult to afford the insurance of your newfound freedom.

But not all is lost – read on to find out why car insurance is more costly for teenagers and get some valuable tips and advice for reducing your premium.

Why is car insurance so high for teenagers?

New drivers are higher risk

Insurance companies consider new drivers to be a liability. Having a lack of experience behind the wheel means you are a higher risk driver, which in turn makes cover more expensive. New drivers can expect their insurance premium to decrease over time as they gain more experience and get a few years of no claims under their belt, but if you are under 25, this process can take a bit longer.

Younger drivers have more accidents

Unfortunately, young drivers are the age group most likely to have an accident on the road. With the most drink driving-related incidents and high numbers of reckless driving cases, insurance companies consider teenagers and young adults to be a high-risk age group. For this reason, car insurance premiums skyrocket for young people, with the cost usually dropping when the driver turns 25.

Tips for getting cheap car insurance for teenagers

Take out a black box/telematics policy

One common method of combatting high insurance premiums on annual cover is by taking out a black box or telematics insurance policy. Rather than your insurance provider judging your premium on your age, having a black box installed in your vehicle (or in some cases a smartphone app) means you are judged on how safe your own driving is. The telematics box measures factors such as speed, mileage and braking, so if you’re a careful and safe driver, it could certainly lower your insurance.

teenage boy driving a car

Consider short-term insurance

If you’re not planning on driving very often, it may be cheaper to take out temporary car insurance for young drivers as and when it’s needed, rather than taking out an annual policy.

Our short term car insurance policies are perfect for getting you cover fast, so if you want to go on a spontaneous day trip or are planning to borrow your parents’ car while you’re home from university, our temporary car insurance for under 21s can have you covered in just 15 minutes.

Add an additional driver to the policy

Adding an older, more experienced driver to your insurance policy can reduce your annual insurance premium. This is because it shows the insurance company you won’t be the only person driving the vehicle, which in turn lowers the chances of you having an accident.

Just ensure that you are being truthful about the situation and the main driver of the car is the main driver on the policy, else any claims you want to make could be invalidated and your policy revoked.

Choose a cheaper car to insure

Although many young drivers dream of getting a top of the range car after passing their test, it may not always be the best idea if you’re looking to reduce the cost of your car insurance. According to Uswitch, the make, model and a few other factors of your car can directly affect your insurance premium, such as:

  • how quickly the car reaches its top speed
  • the value of the car when bought new
  • if it has any security features
  • costs and time involved in fixing it if there’s a problem
  • the cost of individual parts
  • if it has any modifications
  • the car’s environmental impact
  • whether it has extra safety features in place e.g. an automatic braking system

In short, if the car is likely to cost the insurer a lot of money in the event of an accident, damage or theft, the higher your insurance premium is likely to be.

Make your car more secure

As mentioned above, having a car that is less at risk of being broken into, damaged or stolen can make your insurance cheaper. So, whether the car has an alarm or whether you can park it off-road or in a garage are things that the insurance company will look favourably at when deciding how to price your cover.

Increase your excess

By stating that you’d be happy to pay more upfront in the case of an accident is a quick and easy way to reduce your insurance premium. Just be sure that you can actually pay the amount in the case of an accident!

Whether you need cover for an hour or a month, our temporary car insurance for new drivers is a great cover solution for students and young drivers everywhere. Get your quote today in just a few minutes.