Cheapest car insurance for young drivers

Unfortunately, youth is not on your side when it comes to buying car insurance. Even if you consider yourself to be a responsible driver, insurance companies will lump you in with all the other young drivers out there.

As younger drivers are statistically more likely to be involved in a collision, this means your insurance costs will be higher. However, there are ways to slash costs and find the level of cover you need.

What’s the cheapest type of policy?

There’s no simple answer to this question. Historically, third party insurance has been the cheapest type of car insurance on offer, which makes sense as it offers the least amount of protection.

While third party will cover you for any damage you do to someone else’s vehicle or property, you won’t get a single penny in financial help if your car needs any repairs.

However you shouldn’t assume third party is the cheapest – sometimes it isn’t. Insurers have cottoned onto the fact that high-risk, young and inexperienced drivers are the most likely to take out this level of cover, so prices are sometimes more expensive.

It’s worth getting quotes for the other two types of policies out there too. You might well get lower premiums with a third party, fire and theft deal or a comprehensive insurance policy.

When does it makes sense to buy the cheapest car insurance?

The main reason you might buy the cheapest car insurance policy available is if it’s the only one you can afford to buy. Yet, there are other reasons.

If your car is a bit of an old banger and not worth very much, you might decide paying for a comprehensive policy is money down the drain. Although, as discussed above, comprehensive deals aren’t always more expensive.

Likewise, if you only use your car occasionally, for example if you only take it for a spin on weekends, you might decide third party offers enough protection.

Of course, anyone with a new or expensive car will most likely want to get a comprehensive policy that will cover them for any damage or theft.

What affects the cost of car insurance?

The following are some of the factors that can make car insurance more expensive for one person than another:

• Age
• Car make and model
• Address
• Average yearly mileage
• Driving history

How can I lower my car insurance rates?

So one way to lower your car insurance rates is to only buy the cover you need. If you don’t need a comprehensive deal, then opt for a third party option instead. Here are some other ways to lower your insurance premiums:

• Buy at the right time. Taking out car insurance three weeks before it’s due to start can be cheaper than signing up last minute or even months before.
• Telematics policy. With a telematics policy, you install a black box in your car that monitors certain aspects of your driving, such as speed, distance travelled and the time of the day you drive. Agreeing to this policy can lower your costs if you drive responsibly.
• Buy a cheaper car. Choosing to buy a less powerful or older vehicle can bring costs down as insurers see them as less risky on the roads. Rare cars that cost more to find replacement parts for can increase prices though.
• Opt for a higher excess. An excess is the amount you pay towards a claim before the insurer starts contributing. Agreeing to pay a higher excess will mean lower premiums.
• Add an older driver on your policy. Nominating an older, more experienced relative or friend as an additional driver on your insurance can sometimes lower costs.
• Keep your car safe and secure. Leaving your car in a garage when it’s not in use can lead to discounts. So too can using anti-theft and other security features to deter thieves.
• Never auto-renew. Car insurance providers often don’t reward loyalty, so you need to shop around and get some quotes every year. This way you can make sure you’re getting the best price possible.
• Pay annually. While it might seem cheaper in the short-term, car insurance companies often hit people who pay in monthly instalments with higher fees. If you can, try to pay in an annual lump sum.
• Cut your mileage. Limiting the number of miles you drive each year can lower costs as insurers will see you as less of a risk if you’re spending less time on the road. You could try taking public transport or carpooling instead.
• Drive safely. If you drive responsibly and avoid making any claims, you’ll earn a no claims discount after a few years.

Frequently asked questions

• Do I have to get insurance?

  To legally take to the roads in the UK, you need to have (at bare minimum) third party cover.

• Is budget car insurance a good idea?

  It really depends on your situation. Budget car insurance companies can offer decent rates to drivers who are struggling to get cover elsewhere.

  However they’re not for everyone. Bigger and better known companies could well have better customers service, higher levels of cover and let you manage your policy in a mobile app – but they could hit you with higher fees.

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Written by

Esther Wolffowitz

Publisher

Esther Wolffowitz was a publisher at finder.com specialising in insurance. Esther holds an MSc in Media and Communication Governance from the London School of Economics and Political Science (LSE). See full bio