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Cheap Car Insurance for First Time Drivers
Cheap auto insurance for first time drivers
- You could save up to £523*
- 4.8 out of 5 stars on Reviews.co.uk**
- Cheap quotes from 100+ providers
What is first time driver insurance?
First time driver insurance is protection for those who have recently passed their tests. It's required by law and protects both them and other people on the road. There are a few types of first time driver insurance, so be sure to understand your options before buying a policy.
The penalties for being caught without car insurance include hefty fines, points on your licence, higher insurance premiums and even disqualification from driving.
Is first time driver insurance more expensive?
Yes, cheap car insurance is harder to find for first time drivers, because cover is usually more expensive for this group. Why? First time drivers have less on-the-road experience, so insurers think first time drivers are riskier and more likely to have an accident.
Because of the higher likelihood of a claim, insurers charge higher premiums for first time drivers.
How much does car insurance cost for a first time driver?
Car insurance for a first time driver costs around £1,500 - £1,600 as a median figure, although rates can vary significantly according to many pieces of information such as driver age, the vehicle being insured and the type of policy chosen.
For example, NimbleFins ran some tests for a sample driver and found that a first time driver who is 20 years old would pay around £1,600 to insure their vehicle, while a first time driver who was just five years older would pay around 43% less:
But as long as the first time driver stays accident and claim free, they will pay a LOT less in their second year and thereafter. Data from Go.Compare showed that the median rate paid dropped ~27% once a driver hits their first anniversary of passing their driving test. And for the next few years after that, they should see their premiums dropping by around 10% per year:
| Number of years with a driving licence | Median annual premium | Decrease |
|---|---|---|
| 0 | £1,520 | |
| 1 | £1,110 | -27% |
| 2 | £970 | -12% |
| 3 | £880 | -10% |
| 4 | £780 | -11% |
| 5 | £710 | -8% |
| 10 | £580 | -19% |
| 15 | £520 | -11% |
| 20 or more | £390 | -25% |
What kind of car insurance do first time drivers need?
Those who've recently passed their driving test (congratulations!) can choose between the following three tiers of car insurance:
| Types of first time 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 1: It's also worth mentioning telematics policies. These track the way you drive (e.g. speed, cornering and braking) and so first time drivers who demonstrate safe driving habits should get cheaper premiums the subsequent year.
Top tip 2: 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.
Cheap first time car insurance
First time drivers can try to lower the cost of their insurance by keeping the following tips in mind:
1. Choose a telematics (black box) insurance policy
Telematics policies are cheaper in many cases for first time drivers. These systems track the way you drive (e.g. speed, cornering and braking) and first time 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 first time 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 first time 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. First time 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 first time 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, first time 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.
Cheap car insurance for first time drivers over 25
Given how much more affordable rates are for first time drivers over 25 (as illustrated in the chart below), there will be more cheap car insurance options available to this age group.
More insurers are likely to offer cover, at a cheaper rate. This is particularly important if you don't want a telematics policy, as you're more likely to find affordable cover at this age without needing to be tracked. While first time drivers over 25 still lack road experience, they have life experience and are more likely be be safe, responsible drivers (compared to a very young first time driver).
Cars for first time drivers with cheap insurance
Among the cheapest cars for first time 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, first time 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 first time 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 first time drivers, including Fiat, Kia, Citroen, VW and Ford models.
