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Cheap Car Insurance for New Drivers
Cheap car insurance for new drivers - get quotes here!
- You could save up to £530*
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- Cheap quotes from 100+ providers
Do new drivers need car insurance?
Yes—car insurance is required by law for all drivers.
The penalties for being caught without car insurance include hefty fines, points on your licence, higher insurance premiums and even disqualification from driving.
What kind of car insurance do new drivers need?
Those who've recently passed their driving test (congratulations!) can choose between the following three tiers of car insurance:
| Types of new driver insurance | |
|---|---|
| Third Party Only (TPO) | The lowest tier of car insurance, and the minimum coverage required by law. TPO only covers damage to other people's property or injuries to other people. TPO does not cover damage to your own car. |
| Third Party, Fire and Theft (TPFT) | TPFT car insurance provides the mandatory third party coverage required by law and also covers damage to your car resulting from fire, theft or attempted theft. |
| Comprehensive | The best tier of car insurance, comprehensive covers third party damage or injury AND damage or loss of your car due to fire or theft AND damage to your car from an accident where you're at fault (only comprehensive policies cover this last bit). |
Top tip: New drivers might expect to pay more for comprehensive cover, but surprisingly this (the highest tier of cover) may actually be cheaper than lower tiers. Before opting for TPO or TPFT assuming you're saving money, it is important to get quotes for comprehensive cover as well. It could provide much better value for money.
How much is insurance for a new driver?
New drivers lack experience on the road and are perceived as riskier, so their car insurance is typically more expensive. And insurance providers not keen to cover new drivers will quote very high premiums indeed, as much as 4-5X the cost of cheaper insurers. For these reasons, it's very important to compare quotes to find cheap auto insurance for new drivers.
New drivers who are a bit more mature (that is, older) typically pay lower rates than younger new drivers. But, this trend changes around 35 years of age—motorists who are 35 years old or older when they first get behind the wheel will pay more than a new 30-year-old driver.
Cheap car insurance for new drivers over 30
NimbleFins research showed that new drivers around 30 year of age pay the least of any age group. For example, our data tests found that a 30-year-old new driver pays 10% less than new driver 5 years younger.
Cheap car insurance for new drivers over 25
The cost of cheap car insurance for new drivers over 25 is much more affordable than for younger new drivers, with rates around 43% lower than for 20-year-old new drivers.
Cheap car insurance for new drivers under 25
Young driver car insurance for those under 25 is by far the most expensive of any age group. Luckily, your premium should reduce in each subsequent year, so long as you maintain a good driving history of no accidents, points or claims.
How to find cheap car insurance for new drivers
There are a few tips to finding cheap car insurance specifically for new drivers—tips that can help mitigate the risks associated with a new driver's lack of road experience.
1. Choose a telematics (black box) insurance policy
Telematics policies are cheaper in many cases for new drivers. These systems track the way you drive (e.g. speed, cornering and braking) and new drivers who demonstrate safe driving habits should get cheaper premiums.
2. Add a named driver
Adding a more experienced, older driver to your policy can lower the premium on a new driver policy. By adding a second driver, it's assumed you won't be behind the wheel 100% of the time, mitigating some of the risks associated with new drivers.
However, don’t fall into the trap of fronting and be tempted to list the named driver as the main driver in order to get cheaper car insurance. Fronting is insurance fraud so not only will it invalidate your policy, you’ll be committing a crime, too.
3. Choose a cheaper car
Choose a car that would cost less for the insurer to repair or replace if you should be in an at-fault accident while you're gaining valuable road experience. Look for a car with a lower market value and a lower insurance group. (All cars belong in one of 50 car insurance groups, based on value, engine size, the cost of repairs and parts and safety features.)
4. Consider all levels of cover
Surprisingly, the highest tier of cover (comprehensive) might be the cheapest for new drivers. This is because drivers who are interested in protecting their own car through comprehensive cover are known to be more careful behind the wheel than drivers who aren't concerned with protecting their car through insurance.
5. Increase your excess
The excess is an amount you have to pay in order for a claim to go ahead. There are two types of excess:
- Compulsory excess: a fixed amount set by your insurer.
- Voluntary excess: an additional amount you agree with your insurer.
You must pay both excesses in a claim goes forward. New drivers might find a lower premium if they take on more of the risk, by opting for a higher voluntary excess. But remember it needs to be affordable should you need to claim.
6. Never auto renew
Given the high price of new driver insurance, it's particularly important to check the market and compare quotes when it comes time to renews. You might find quite high premiums for a few years as you gain experience and a no claims history, so it's important to see which insurance providers most want your business each year.
7. Complete an advanced driving course
Some insurers will discount your premium if you’ve completed an advanced driving course, such as Pass Plus. The discounts vary but given the high rates, new drivers might save a noticeable amount this way.
For other money-saving tips related to all drivers, read our extended article on how to get cheap auto insurance.
Cheapest cars for new drivers to insure
Among the cheapest cars for new drivers to insure are the Fiat Panda, Kia Picanto and Citroen C1. In NimbleFins market tests for a new driver, these three vehicles were at least 20% less to insure than other popular vehicles including the VW Polo and T-Roc, Skoda Fabio and Ford Puma.
When looking for a cheap car to insure, new drivers should consider two primary factors:
- the market value of the car (lower is better)
- the insurance group of the car (lower is better)
There is some correlation between these two factors, in that a car with a lower market value is likely to have a lower insurance group, and vice versa. But there are also many other data points factored into the insurance group. Regardless, both of these factors impact an insurance quote.
Simply put, a lower market value means a lower max payout on comprehensive policies for accident damage or theft—because insurers won't pay out more than the market value, a lower market value means less risk for the insurer, and a lower premium. This holds true for any age group.
That said, the cheapest cars to insure for new drivers under 25, the age group most likely to drive, shall we say, excitedly, may be cars with smaller engines and less vroom!
Cheapest second hand cars to insure for new drivers
The following chart shows data gathered by NimbleFins comparing some of the cheapest second hand cars to insure for new drivers, including Fiat, Kia, Citroen, VW and Ford models.
Methodology
Sample quotes gathered for this article are meant to show how rates compare and change across different vehicles and ages for new drivers. Unless otherwise stated, the main vehicle used was a 5-year-old VW T-Roc based in Bristol and parked on a private driveway. The policy has a £250 voluntary excess. The new driver has 1 month of experience and 0 years of no claims. Quotes are highly variable based on dozens of individual factors; your rates will certainly vary.