If you’re 18 years old, it’s going to be well worth your time searching for the best car insurance deal. That’s because car insurance policies for 18-year-olds are going to be eye-wateringly expensive. As such, the difference between the best deal and an average one could total hundreds of pounds. This guide on car insurance for 18-year-olds will make it easier for you to locate the best deal.
Cheapest cars to insure for an 18-year-old
In this table, you’ll discover the cheapest cars to insure for the average 18-year-old.
Why is car insurance more expensive for 18-year-olds?
Car insurance companies use several factors to calculate the likelihood of a customer making a claim on their policy, and the customer’s age is one of the most prominent of these factors. The amount of years since they last made a claim is another one.
The youngest drivers are historically the most likely to make a claim, and they will not yet have had the opportunity to build a no-claim bonus.
That’s why they’ll pay more for car insurance than older drivers.
What types of insurance are available to 18-year-olds?
The main types of car insurance are: comprehensive, third-party fire and theft, or third-party only. These are available to 18-year-olds, just as they are to all ages.
However, younger drivers may also be able to add telematics to their car insurance policy to lower the cost of their premium.
With a telematics car insurance policy, the driver will add a “black box” to their vehicle, which tracks your driving and reports its findings back to the insurer. This way, safe drivers have a way of proving that they can be trusted not to make a claim.
However, if you’re proven to be an unsafe driver, your premium could rise.
Average insurance cost for an 18-year-old
To provide you with an idea of how much it may cost for an 18-year-old to insure a car, we ran several quotes to find an average figure. Based on our results, we suspect an 18-year-old could insure their car with a comprehensive policy for an annual sum of 2090.
To generate these quotes we used the following information:
Ford Fiesta Zetec 1.4
The vehicle is a 2009 model
Manual transmission
Petrol
1.4 litre engine
Average insurance cost for an 18-year-old by location
There are a large range of factors that affect the cost of your car insurance premium, one of the biggest being your location.
To show the potential impact of an 18-year-old’s postcode, here are some average quotes for an 18-year-old living in three different locations. The quotes are for a Citroen 1.0i VT 5d.
Cheap: 1457 (Truro, TR8)
Average: 1794 (Chester, CH1)
Expensive: 2223 (London, E10)
These rates are based on the average cost of cover for cars in the locations shown. Our research suggests E10 is one of the most expensive locations, CH1 represents an average cost location and TR8 represents one of the cheapest locations. Updated: June 2024 (source: Confused).
What other costs are involved in getting your first car?
As if raising the cash to insure their car wasn’t enough, 18-year-olds will also need to make sure they have the money available to cover the following costs.
Petrol. You’ll need to keep the petrol tank full.
Car tax. The amount you’ll pay is based on your choice of vehicle, its emissions and when it was registered. It’s also known as vehicle excise duty.
MOT. Once your vehicle is more than three years old, you’ll need to pay for an MOT test every year. In this test, a licensed mechanic will check that the vehicle meets the minimum legal standards for road safety and environmental friendliness.
Servicing and maintenance. As a vehicle ages, you’ll inevitably have to pay for maintenance. Your MOT test will identify what maintenance jobs are required.
Repairs. If your car needs repairs, you can make a claim on your insurance, so your insurer funds the costs. However, as this impacts your no-claim bonus, you might prefer to front cheaper repairs yourself.
How can 18 year-olds save on their car insurance?
Choose a cheaper car. Cheaper cars cost less to replace or repair when damaged or stolen. That’s why they typically cost less to insure.
Add a named driver. If you add a more experienced driver onto your policy, insurers will often reduce your premium.
Take your “Pass Plus” course. This course teaches newly-qualified motorists how to navigate more advanced aspects of driving, including driving on the motorway or at night. You’ll get a certificate for completing the course, and a lot of insurers will offer a discount on your premium as a reward.
Increase your voluntary excess. Most insurers will cut your premium if you agree to cover more of your insurer’s potential costs with a larger excess.
Add additional safety measures. By installing extra safety measures, you reduce the likelihood of making a claim on your car insurance. That’s why most insurers are happy to reduce your premium when you do so.
Avoid unnecessary modifications. Teenagers tend to be among the biggest fans of unnecessary modifications such as a spoiler or an expensive sound system. Sadly, these can send your premium skyrocketing, so they should be avoided if you’re trying to keep costs down.
The bottom line
Buying car insurance can be daunting for an 18-year-old, but it doesn’t have to break the bank. Using the tips in this guide, most teenagers will be able to find an affordable car insurance policy.
Frequently asked questions
In 2012, the European Union forbade insurance companies from discriminating against their customers based on their gender. Following Brexit, the UK is free to ignore these rules, but they remain in place at the time of writing.
It depends on a range of factors, but you should be able to find a better deal after one year of making no claims on your policy.
Yes, by adding more experienced drivers (such as your parents) onto your policy as a named driver, you can reduce the cost of your premium.
Insurers will consider the cost of repairing a vehicle, not its age. However, older cars do tend to be cheaper to insure because they are usually cheaper to repair.
You’ll find plenty of insurers willing to cover you at age 18, but insurance companies are free to set their own age limits for their customers.
Car insurance depends on a number of factors, not just your age. Both 17-year-olds and 18-year-olds are historically the most likely to claim, so both can expect to face larger premiums. However, if the 18-year-old has one year of no claims under their belt, they can reasonably expect to be offered a cheaper deal.
If you have a year of no claims under your belt, you can expect to be offered a discount on your car insurance, compared to when you were 17.
Yes, most insurers are happy to insure 18-year-olds.
Temporary car insurance is an alternative option that might tempt 18-year-olds. With this type of policy, they can choose to insure themselves for a shorter period of time, rather than the whole year.
This is unlikely to be cost-effective for anyone who wants to regularly use their car. However, it could work for those who only want to take an occasional road trip.
*Based on data provided by Consumer Intelligence Ltd, www.consumerintelligence.com (Mar ’24). 51% of car insurance customers could save £539.54
The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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Written by
Danny Butler
Danny is a publisher at Finder specialising in insurance and investing. He previously worked at the global insurer Aon and has appeared in national media giving advice on insurance. Danny holds a BA in International Business from the University of Plymouth and has undying loyalty to his average-poor football team, Portsmouth FC. See full profile
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