How do I get cheap young driver insurance?

Lets face it, it's not easy to find cheap young driver insurance when you have just passed your driving test. But there are ways to find cheaper insurance if you think about what kind of car you are going to be driving and how you want to insure it.

The most important task when getting the best and cheapest young driver insurance is to get as many quotes as possible and use comparison websites like quotezone (click “get quotes” below) to find the right car insurance that suits your needs.

What are the cheapest cars to insure?

Finding a suitable car to buy with the lowest insurance group should be your first task if you want to find the cheapest way to insure a small car on UK roads. There are plenty of options out there and some might surprise you. 

Typically you will be looking at engine power ratings below 100 PS. Try to avoid modified (not factory issue) cars as there will be a cost penalty when it comes to insurance. Insurance groups between 3 and 10 will get you the best deals for a young driver policy.

The following is a list of cheap cars to insure;

• VW UP! - Group 1
• Hyundai i10 - Group 2
• Citroën C1 -  Group 2
• VW Polo - Group 3
• SEAT Ibiza - Group 3
• Kia Picanto - Group 3
• Kia Rio - Group 4
• Skoda Fabia - Group 4
• Toyota Aygo X - Group 5
• Ford Fiesta - Group 7

We ran a quote for an employed 20 year old driving a 2012 Volkswagen Take UP! who had passed their test for 1 year and was going to use the car for domestic and commuting purposes. The best quote we found was fully comprehensive for £1149.49 per year or £104.27 per month in May 2024. 

This quote was not telematic but was the best in comparison with black box insurance quotes. Black box insurance might benefit you on renewal, if you are deemed a good driver.

Black box and plug and play insurance for young drivers

Black box or telematics insurance can help young drivers reduce the price of their insurance premium by having a black box telematics device fitted to their vehicle. The box measures your speed, accelerations and braking but also has a curfew overnight between 10pm and 4am. You get scored for good driving habits and if your score is high all year you will get a discounted renewal premium.-

There are other options out there including app based systems that are installed on your smartphone, plug and drive devices that plug into a 12v socket (cigarette lighter) or pay per mile where you pay an annual “parking premium” and then get charged monthly based on how many miles you drive.

A lot of young drivers are attracted to cheaper black box insurance because the initial quote they receive tends to cost less than “no black box” cover that may seem out of reach. Insurance companies like it because they feel it helps temper young drivers' desire to go fast, be reckless and drive around in the middle of the night! 

Will high voluntary excess reduce a young drivers insurance premium?

Yes, the higher your excess means the less you will pay monthly or each year but if you have an accident then you will have to pay the excess to get your vehicle fixed. The insurance company will pay the other costs associated with the damage only when you have done this.

You can take out another type of policy where your excess is “protected” by paying an additional fee but I am not sure how they balance that with the voluntary excess amount. Either way, as a young driver you are kind of expected to agree to pay a relatively high excess to get a premium in the first place. 

Third Party insurance does not include a voluntary excess, only compulsory excess that is much less than for Fully Comprehensive insurance. So if you are worried about having to pay lots of excess and your vehicle is cheap to replace this could be an option.

Will Third Party insurance be cheaper for a young driver?

Yes, but not by much and not significantly enough to go for if the car you are insuring has some value. For example, in the quote above for the Volkswagen UP!, the cost of a yearly premium for Third Party, Fire and Theft was £1132.76 which is not that different from the Fully Comp. offer. 

The only difference in value is the excess, which for the Third Party quote is £250 and for the Fully Comprehensive is £1150. So you pay a lot less excess on your policy with Third Party insurance.

Does adding additional drivers to my policy bring down the costs?

Yes, adding Mum or Dad (older the better) or both will help drive down the cost of your insurance premium even if they have their own cars. It will also open you up to more insurance companies who prefer dealing with older customers. As long as your parents or guardians have not had any recent crashes or driving convictions, it is definitely worth a try!

We ran a quote for the above VW UP! and we managed to get the quote down to £902.54 a year or £83.48 a month by sticking a Dad with 35 years driving experience on the policy.

Negotiating a better deal with your current insurer

If you are a young driver and you currently have an active insurance policy coming up for renewal and they have hiked up costs or not changed your policy payments then it is time to shop around. Get as many quotes as you can from as many comparison websites you can find to get the best deal you can get.

Then take that best quote back to your insurer and ask them to match or beat it. That way you don’t have to deal with the hassle of getting cover with another insurance company and they get to keep you.

Summary

New drivers are not going to get cheap car insurance and the only way to bring down the costs of your premium is to do these things;

• Buy a car with an insurance grouping between 1 - 5
• Get your Mum or Dad on your policy
• Push up the excess if you think you won’t make a claim
• Try a telematics or black box policy
• Park the car somewhere safe at night
• Negotiate with your current insurer by using competitors quote

Disclaimer: This information is intended for editorial purposes only and not intended as a recommendation or financial advice.

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