Young Driver Car Insurance:
9 Smart Ways to Cut Costs in 2025
What is Young Driver Insurance?
Young driver motor insurance refers to insurance policies for drivers aged 17 to 24. These are standard policies, but they cost more due to the higher risk associated with newer drivers.
New drivers usually pay more for car insurance because data shows that those aged 17 to 24 are more likely to be involved in accidents, particularly in the first few years after passing their test.
Less time behind the wheel and limited driving history lead to a higher rate of claims, which increases premiums for this age group.
To help reduce costs, insurers offer tailored options such as black box insurance (telematics insurance), which monitors your driving and rewards safe habits with potential discounts.
Other ways to lower the cost include choosing a car in a lower insurance group, limiting mileage, or adding an experienced named driver, like a parent or guardian, to your policy.
This guide explains the key types of cover, pricing, and the steps young drivers can take to find affordable insurance.
What Types of Car Insurance do Young Drivers Need?
Young drivers in the UK typically choose between three main types of car insurance: third-party, third-party, fire and theft, and comprehensive.
Each level offers a different balance of coverage and cost.
Knowing what each type includes helps first-time drivers select the right policy based on their needs, vehicle value, and driving habits.
Third-Party Insurance
Third-party insurance is the legal minimum required to drive in the UK.
It provides cover for:
- The damage you cause to another person’s vehicle
- Injury to third parties, including passengers and pedestrians
- Damage to third-party property
It does not include:
- Repairs to your vehicle
- Personal injury cover for you as the driver (if at fault)
This type of insurance is often chosen for older or lower-value cars. While it may seem like the most affordable option, it’s not always the cheapest, so it’s worth comparing with other types.
Third-Party Fire & Theft Insurance
Third-party, fire and theft (TPFT) builds on basic third-party cover and adds protection for:
- Damage caused by fire
- Theft of the vehicle
- Damage from attempted theft
TPFT is suited to drivers who want basic third-party liability and added protection from common risks like fire and theft.
It’s a popular choice for young drivers with mid-range vehicles that may not justify full comprehensive cover but still need safeguards beyond the legal minimum.
Comprehensive Insurance
Comprehensive insurance provides the broadest level of cover, including:
- Damage to your car, even if you're at fault
- Accidental damage and vandalism
- Windscreen repairs or replacement
- Medical expenses for you or your passengers
- Cover for belongings left in the vehicle (depending on the insurer)
Many young drivers assume comprehensive insurance is the most expensive.
However, insurers often view drivers who choose this level of cover as more responsible, so comprehensive policies can sometimes be cheaper than lower-tier options.
It’s ideal for drivers of newer cars or anyone who wants maximum peace of mind on the road.
Check our complete guide to Comprehensive Motor Vehicle Insurance Policies.
What Are the Best Car Insurance Options for Young Drivers?
Young drivers can reduce insurance costs by choosing a policy that matches their driving habits, annual mileage, and experience level.
Below are the four most relevant policy types, structured by coverage suitability and user benefit.
Black Box (Telematics) Insurance
Telematics insurance uses a device or mobile app to monitor your driving behaviour, tracking speed, acceleration, braking, and travel time.
Safer driving typically results in reduced premiums.
Why Choose It:
- Encourages responsible driving habits
- Offers discounts for safe drivers
- Frequently, the most affordable option for young motorists
Considerations:
- Premiums may increase if risky patterns are detected
- Driving at night or during rush hours can affect your score
Best For: Young drivers in their first few years behind the wheel who want to build a positive driving record and lower their insurance over time.
Named Driver Insurance
This option allows a parent or experienced driver to be added to the policy, helping reduce the main driver’s perceived risk profile.
Why Choose It:
- It may significantly reduce the overall cost of insurance
- Shared driving history can appear less risky to insurers
Legal Note: It’s illegal to name someone else as the main driver if they’re not—the practice, known as “fronting,” is insurance fraud.
Best For: Young drivers who share a car with a parent or guardian and drive it part-time.
Pay-As-You-Go (PAYG) Insurance
A PAYG policy charges you based on the distance you drive. It’s designed to give low-mileage drivers more control over their insurance spend.
Why Choose It:
- Charges align with actual car usage
- Ideal for students, occasional commuters, or remote workers
Example Model:
- £200 base cost + £0.05 per mile
- 5,000 miles = £450 total annual premium
Best For: Drivers who use their car infrequently and want to avoid fixed high premiums.
Learner Driver Insurance
This temporary policy allows provisional licence holders to practice driving in a friend or family member’s car without risking their no-claims discount.
Why Choose It:
- Separate cover from the car owner's insurance
- Duration from 1 day to 6 months
- There is no impact on the vehicle owner’s policy if a claim is made
Cost Range: Typically £1 to £2 per day
Best For: Learner drivers who want affordable, flexible cover while preparing for their driving test.
How to Get the Best Car Insurance for Young Drivers?
Securing the best car insurance as a young driver involves more than just price comparison.
It requires selecting the proper policy structure, leveraging age-specific options, and providing accurate personal details.
Insurers assess risk through multiple factors, so presenting a truthful profile is essential for unlocking the best rates.
To find a policy that balances costs and covers:
- Use a trusted comparison service
Access quotes from multiple insurers in one place to evaluate policy terms, price points, and added features side by side. - Choose the right level of cover
Compare third-party, third-party fire and theft, and comprehensive options. Many young drivers find comprehensive policies surprisingly affordable due to wider insurer competition and better risk control. - Explore discount-triggering features
Black box (telematics) policies, mileage-based PAYG insurance, and adding a parent as a named driver can all help reduce premiums if used legally and appropriately. - Optimize your excess
Increasing your voluntary excess lowers premiums, but it must remain an amount you could realistically cover in the event of a claim. - Quote early and renew smart
Premiums are generally lower if you request quotes 21–30 days before your renewal date. Late quoting often leads to higher costs. - Enable automated quote checks
Some comparison sites allow you to pre-authorize annual quote scans, alerting you when cheaper or more relevant options become available.
What Do I Need to Get a Quote for Young Driver Insurance?
To receive an accurate insurance quote tailored to your circumstances, you’ll need to provide:
- Your age, home postcode, and occupation
- Your driving licence type and date passed
- Car registration, make, and model
- Your typical car usage (e.g. personal, commuting, business)
- Estimated annual mileage
- Record of past accidents, claims, or driving convictions
- Any additional drivers you plan to include on the policy
These data points allow insurers to model your risk profile and offer a quote reflecting your driving situation. Omitting or misreporting details may result in higher premiums or invalidate your cover.
More details on Car and Auto Insurance policies.
Why Is Young Driver Insurance So Expensive?
Car insurance for 17–24-year-olds is higher because newer drivers are more likely to be involved in claims.
Industry data confirms that younger motorists pose a statistically higher risk, leading to elevated premiums.
📊 Average Annual Car Insurance Premiums
Provider | Age Group | Average Annual Premium | Notes |
|---|---|---|---|
Compare the Market | 17-24 | £1,495 | Based on CTM customer data from March 2025 |
Money Super Market | 17-19 | £1,388 | National average based on active quotes |
Go Compare | 17-24 | £888 (median) | Based on comprehensive policy quotes |
Quotes for young drivers generally fall between £900 and £1,500, depending on the driver’s profile and insurer-specific risk models.
Key Reasons for Higher Costs
- More Frequent Claims: Drivers aged 17–24 account for a disproportionate number of serious accidents despite being a smaller share of UK licence holders.
- No Claims Discount Not Yet Earned: First-time drivers lack a claims history, which prevents them from accessing lower premiums through no-claims incentives.
Higher-Risk Cars and Driving Patterns: Many younger drivers use cars in higher insurance groups or drive during riskier periods, such as late evenings.
Motor Policies by Age
Car Insurance for Under 18
Full car insurance is available if you're 17 or 18 and newly licensed, but premiums are among the highest of any age group due to limited driving history and elevated risk.
- Cover availability: Most insurers offer policies at this age, typically requiring a comprehensive black box plan to monitor driving habits.
- Average premium range £1,200 to £1,600 annually, based on published average rates from leading comparison services. This reflects pricing for standard cover, not including high-performance cars or additional drivers.
- Best-fit policy types: Comprehensive telematics insurance tends to offer the best rates and rewards careful driving. Third-party, fire and theft may offer marginal savings but with reduced protection.
- Cost-saving tactics: Choose a car in insurance group 1–10, limit annual mileage, complete a Pass Plus course, and, where eligible, add an experienced named driver without misrepresenting usage.
Car Insurance for Under 21
If you're 19 or 20, your car insurance costs are still high but may start to ease, especially if you’ve begun to build a no-claims history or have completed your first year on the road.
- Average premium range: £1,000 to £1,400 per year for standard comprehensive policies. Rates vary based on vehicle type, postcode, and any past claims.
- Best-fit cover: Telematics (black box) insurance often remains the most cost-effective option. However, depending on their driving history and insurer criteria, some drivers may now access non-telematics policies.
- Ways to save: Drive a vehicle in a low insurance group, pay a higher voluntary excess (if affordable), and limit modifications. Adding an experienced named driver can help, but always declare the main driver truthfully.
- Build early benefits: Starting your no-claims discount now means bigger savings at 21 and beyond—insurers often offer significant reductions even after just one clean year.
Car Insurance for Under 25
Insurance costs for drivers aged 21 to 24 generally drop compared to younger age groups, especially those with a clean driving record and a growing no-claims history.
- Typical premium range: £900 to £1,300 annually, with rates depending on past claims, car type, and location.
- Preferred policies: Many in this group move away from black box insurance, although telematics still appeals to drivers seeking lower premiums.
- Smart car choices: Opt for vehicles in insurance groups 1–19, avoiding high-powered models and unnecessary modifications.
- Savings tactics: Compare prices at renewal, pay in full when possible, and drive fewer miles to reduce perceived risk.
Confirm all Insurance Groups for Cars.
How Can I Get Cheaper Car Insurance as a Young Driver?
To get cheaper car insurance for young drivers, focus on the factors that directly influence risk, usage, and policy structure:
- Drive a low-insurance group car.
Choose vehicles in groups 1–19. These are usually small-engine models with low repair costs and high safety ratings. - Increase your voluntary excess.
Opting for a higher excess reduces your premium. A typical sweet spot is £500–£750. - Add a named driver with experience.
Including a parent or guardian with a clean record can lower perceived risk—but only if they genuinely share driving. - Limit annual mileage.
Declare fewer miles (e.g. under 6,000/year) to qualify for lower mileage brackets. - Use a black box policy.
Telematics-based insurance tracks driving behaviour. Safer drivers typically see discounts during or after the first policy term. - Pay annually instead of monthly.
Full payments avoid interest charges added to monthly instalments, often saving 10–20%. - Take a Pass Plus course.
Some insurers offer small discounts for completing post-test training. - Switch at renewal.
Comparing quotes yearly can reveal significantly cheaper options. Avoid auto-renewals without checking the market.
Young Driver Insight
According to Uswitch, young motorists aged 17–24 in the UK pay an average of £2,175 annually for car insurance.
If you're based in London, that figure climbs to approximately £3,108, making it the most expensive region for young driver premiums.
Conversely, those in the South West pay significantly less, around £1,646 on average. This highlights how location is critical in determining premium costs for new motorists.
Annual Cost of Running a Car for a Young Driver
Running a car in the UK as a young driver involves a range of regular costs, with insurance taking up the largest share. Here’s the estimated average annual spend for under-25 motorists in 2025:
📊 Car Running Costs for Young Drivers – 2025
Running Cost | Average Annual Cost |
|---|---|
Vehicle Excise Duty (VED) Tax | £153 |
MOT Test | £55 |
Car Insurance | £1,495 |
Servicing & Repairs | £473 |
Parking, Tolls & Permits | £190 |
Breakdown Cover | £59 |
Total Estimated Annual Cost | £2,425 |
The figures are based on Compare the Market (March 2025) for insurance and NimbleFins partial data for other vehicle running costs.
Insurance accounts for 62% of total running expenses, highlighting its impact on young drivers’ budgets.
Considering tweaks like reduced mileage, higher excess, or policy type adjustments could lower that burden.
Frequently Asked Questions
The best young driver insurance without a black box is often a comprehensive or third-party policy without telematics tracking. It suits drivers who prefer privacy or who drive during late hours. Some insurers offer these plans without driving score monitoring.
Yes, young drivers can find car insurance under £1,000 without a black box by choosing low-risk vehicles, adding named drivers, and comparing providers. These policies skip telematics but may cost more for those without a driving history.
Yes, some black box insurance policies include driving curfews for young drivers and limiting use during high-risk hours. Others simply track behaviour without restrictions. Always check if your telematics plan includes penalties for late-night driving.
Yes, insuring a young driver on their parent’s policy is often cheaper. It lowers perceived risk and can reduce premiums. However, the named driver must not be the primary user—incorrect details may invalidate the insurance.
Yes, your son can take out a separate car insurance policy on your car, even if you’re the registered keeper. This allows full driving cover but may cost more than being a named driver on an existing plan.
Manual cars are generally cheaper to insure for newer drivers. They have simpler mechanics and are placed in lower insurance groups than automatics. However, rates vary based on make, model, and insurer-specific criteria.
The cheapest temporary insurance for young drivers covers short periods from 1 to 28 days. Prices start from £1.50 per day and depend on age, licence type, and vehicle value. Telematics-free options may be available.
Learn about the Cheapest Temporary Car Insurance.
Yes, you can buy pay-as-you-go insurance for driving your parents’ car. This mileage-based policy tracks your distance and charges accordingly, ideal for occasional use. Ensure the plan covers non-owners and doesn’t affect their no-claims bonus.
For young drivers, mandatory excess is set by the insurer, while the driver chooses voluntary excess to influence the premium. Higher voluntary excess can reduce costs but increase your out-of-pocket expense if you make a claim.
Quality car insurance for young drivers combines affordability, protection, and flexibility. Look for a comprehensive cover with a black box, low mileage discounts, or named driver additions. Compare multiple new driver quotes to find the best match.