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Young Persons Car Insurance – How to get insured for less

Updated on October 30, 2010

If you are a young driver looking to insure you your car, it may seem like you are being penalised for doing the right thing. Lots of young drivers are surprised to find out how much car insurance for young people costs. This article will explain why and what you can do to get insured for less.

Why Is it So Expensive?

In the eyes of the insurance company not all drivers are created equal. The insurance companies typically class people between the ages of 17 and 25 as young drivers and within this particular age group there are a host of statistics that support charging expensive fees for insurance. The simple explanation is that young drivers simply have less experience.

Government statistics in most countries show that younger drivers are much more likely to have an accident within several years of passing their driving exams than any other time in their life. In addition the accidents tend to be more serious often involving several other drivers and passengers. Young drivers are also more likely to engage in risk taking behaviour and drive at times where accidents are more likely such as late on weekend evenings to and from social events with friends who have been drinking.

The Insurance quotes for young drivers are based on several factors including the type of car, who is driving it, what is it being used for and where it is kept. Having mentioned the above, it’s not too difficult to see why the underwriter at the insurance company is going to give a relatively high quote and there are mountains of statistics from road traffic accident claims to justify their decision. This doesn’t mean that it is impossible to get cheaper insurance, as we will see below there are some things that you can do to save a considerable amount of money on your insurance premium.

Which type of Drivers insurance do you need?

By Law your car must have insurance. At the very minimum your car should have 3rd party insurance that will pay for damage to other vehicles and injuries to victims of an accident. Your car insurance is there to protect you against excessive financial losses and to some extent personal liability in an accident. You may want to take out comprehensive car insurance that will cover your car including any significant changes that you have made to it in addition to 3rd party claims however these policies can cost more than you paid for the car.

The best car insurance for young drivers will depend on the factors highlighted below. Don’t be deterred by the prospect of paying for the right type of insurance as it is almost always less than the cost of paying for any damages and any accident injury claim that you may cause the road.

Young Persons Car Insurance
Young Persons Car Insurance

Tips For Cheap Car Insurance for Young Drivers

The following advice will help you significantly reduce the amount that you will have to pay on your premiums and help you find cheap car insurance for young people:

Take Out Your Own Insurance

Don’t be tempted to take a shortcut by registering your parents or another older driver as the principle name on your car insurance policy. Thought the price will differ significantly you won’t be doing yourself any favours in the long run. Should you have an accident and the Insurer finds out you are actually the main driver of that car your entire policy will be voided and you will be left to pay for the damage yourself.

Having the policy in your own name will allow you to build up your driving history and importantly your No Claim Bonus. If you do get into an accident that wasn’t your fault you can retain your no claim bonus and after a while you can make some limited claims where you were at fault and still maintain the bonus. For every subsequent year you have your own policy along with a clean driving history the cheaper the insurance will become.

Other Drivers on Your Policy

Try and have only one additional driver added to your policy. Statistically an male driver who is older and has considerable driving experience will be the cheapest and most favourable in terms of the residual benefit to your policy.

Choose Your Car Carefully

The Insurance company will tack on extra charges of you choose to drive a larger and more powerful vehicle simply because it can do more damage. Though it may be difficult try not to let your heart rule your head on this issue as your car is something you use to get from point A to point B. Should you choose a more sensible car you will still have money to spend when you get to point B.

Know How Much You Intend to Drive

Take the time to figure out exactly how much you will use your car. Because the underwriters insurance prices are based on statistics if you are going to be driving less then it will also be less likely for you to file a motor accident compensation claim. Don’t simply go with the recommendation from the insurer as you could end up paying more than you need to.

Use Your Garage

Sounds simple but many people choose to park outside out of laziness. If you are parking outside or on the street then the car is open to things like vandalism, theft and extreme weather. All of which may force you to make a claim and bump up the price of your subsequent premiums.

Get Protection

Many insurers look favourably on drivers who fit their cars with the right security, A steering lock and alarm monitoring system are known to bring down the cost of car insurance as it will be less likely that the company will need to pay out a claim.

Don’t Pimp Your Ride

Modifications to your car make it more expensive to repair and will drive up the price of your insurance even further. Should you want to make some modifications then check with your insurer first as some performance changes to your car may void any existing policies and exclude you from obtaining others. There are specialized modified car insurance policies available though these tend to be more expensive even for experienced drivers so you should carefully consider the need to make changes to your car.

Take a Course

Attending an accredited safety course like the Pass Plus course may not do wonders for your reputation but will be looked upon favourably by insurers and lead to a substantial discount. Be sure to check with the insurers what type of courses their policies recognize and ask for recommendations.

Young Persons Car Insurance
Young Persons Car Insurance

Do Your Homework

Just like your Mum always says, doing your homework is often the quickest way to get a discount. The commissions from insurers vary greatly and you can easily get 20-30% off the quoted price often by naming a competitor when talking to the insurers.  Going online and comparing the websites against each other is a great way to start and you should do this with as many companies as you feel comfortable with. This will also give you an idea of some of the benefits and optional extras that you may or may not want to pay for.

The worst thing that you can do is take the risk of not getting insured. Knowing the above there should really be no excuse why you can’t reduce the amount you pay for your insurance significantly so get in contact with a few companies and have your relevant driving information on hand. Your insurance will definitely come in handy; the only thing you don’t know is when that will be. 


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    • Miss H profile image

      Miss H 6 years ago

      Thank you for the great info, you're awesome! :)