Created by: Dave Harland | 21 November 2018

How to afford car insurance as a new driver

If you’ve recently passed your driving test, it’s now time to shop around for car insurance to make sure you’re legally allowed to drive on the roads. With multiple providers offering different packages and prices, it’s important to do your research before making the final decision. 

New drivers’ car insurance

New drivers’ car insurance isn’t any different to regular car insurance but is used to describe cover aimed at people who have just started driving.

While car insurance for new drivers is likely to be expensive, you could save hundreds of pounds by researching and shopping around.

Why is new drivers’ car insurance expensive?

There are two main reasons why new drivers’ car insurance is expensive: inexperience and risk.

Research shows that newly qualified drivers are more likely to be involved in an accident than experienced drivers. Insurance companies also have no evidence on how safe a driver you are and you won’t have any no claims discount to reduce the cost.

How can I save on new drivers’ car insurance?

  • Choose the right car. New cars with smaller engines can be cheaper to insure compared with expensive, sports cars.
  • Increase your excess. Insurance excess is what you have to pay if you make a claim. For example, if you have an excess of £100 and you claim for £300, your insurer will only pay you £200. If you agree to pay more, your insurance premiums may be reduced.
  • Consider a black box. Black box insurance is when a black box is fitted to your car to track your driving. This can be a great way of reducing your monthly premiums.
  • Drive fewer miles. By driving fewer miles, you’ll be less of a risk and therefore could reduce your insurance. It’s important not to lie, as you could be charged for going over the limit.
  • Add an experienced driver. Adding an older experienced driver, such as a parent or carer, can reduce the cost of your cover.
  • Increase security. Your monthly premiums could be cheaper if you keep your car somewhere safe overnight and have security devices like immobilisers and alarms.

Important things to consider

  • Shop around to get multiple quotes from different insurers
  • Look for the cover that meets your driving needs and lifestyle
  • Remember that not all insurance providers will cover new drivers
  • Be careful of some insurers charging high premiums to deter new drivers

What could increase my premiums?

Once you’ve taken out your car insurance, your monthly premiums could increase if you:

  • Are involved in an accident
  • Get a speeding ticket
  • Receive points on your license

If you’re involved in an accident and the repairs aren’t expensive, it may be worth paying for it yourself. Claiming through your insurance may cause your premiums to increase and affect your no claims bonus.

Car insurance for new drivers may be expensive but shopping around for the right provider could not only save you money but will ensure you have the right cover.

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