Created by: Rebecca Goodman | 5 June 2019

How young drivers can cut their insurance costs

Young drivers pay the highest average costs for car insurance, of £1,316.62 per year, according to the AA.

However, there are lots of tricks and tips for cutting the cost young drivers pay so they’re not left bankrupted by their cover.

Adding a second driver can lower your costs

If a young driver adds a responsible second driver to a car insurance policy, this could bring down the cost of the policy. As insurance pricing is based on risk, a responsible driver teamed with a ‘high risk driver’ could even out the risk and lower the price.

However, the person named as the main driver must be the main driver - if you put someone on who isn’t this is illegal and could invalidate the policy.

This doesn’t just apply for young drivers either, it could work for drivers deemed high risk for other reasons, such as if they have a speeding conviction for example. 

Black box technology tracks your driving

Telematics, or black box, technology tracks how a car is being driven and creates a price for insurance based on this.

It’s mainly aimed at young drivers as a way to cut the cost of insurance, as by driving safely they can effectively lower their overall bills. However, it’s worth remembering that you’ll also be penalised if you’re driving dangerously.

Never auto-renew a policy

Loyalty never pays with insurance and the best deals are reserved for new customers. Therefore when your insurance is due for renewal it’s always worth shopping around to see if you can find a better price elsewhere.

Multi-car cover might save you money

Insurers often give discounts if you’re insuring more than one car, such as your car and your parent’s car, if they’re based at the same address. The discounts available depend on the insurer but typically it’s around 10 per cent which for a young driver could make a significant difference.

Haggle with your insurer

If you’re taking our a new insurance policy, or yours is coming up to renewal, the first thing to do is check to see the price available from a range of different insurers.

A quick way to do this is via a comparison website, check out a few and you’ll get an idea of the kind of price you will be looking to pay.

If this is far less than your current premium, call your insurer and ask if it will lower the price. If it isn’t willing to budge you are free to leave to go to another insurer.

Change your excess to lower your monthly price

When you take out a new policy you can choose how much excess you pay should you have to make a claim. Overall, the more you pay for the excess, the less you’ll have to pay for your policy - however, make sure you have enough money to pay the excess if you need to.

Choose to pay annually not monthly

If you pay for your car insurance on a monthly basis, the insurer will add interest to these payments so you’ll end up paying more overall than if you paid for it in one lump sum.

Paying for the insurance in a lump sum can seem like a lot however, if you don’t have the money to do this it still might be cheaper to pay via a 0 per cent credit card than choosing monthly payments.

If you are going to use a credit card, you need to make sure you’re able to clear the card within the 0 per cent period otherwise you could be stung with fees and interest charges.

Costs for car insurance Insurance