Why is car insurance so expensive for young drivers?

Passing your driving test is a great feeling. Paying your first car insurance bill is not. According to Quotezone, the average annual car insurance premium for a 17-21 year old driver is £948.95. Ouch! Just why is car insurance so expensive for young drivers?

We have the answer…

High risk = high premium

Unfortunately, newly qualified drivers are at greater risk of making a claim than older, more experienced drivers. From the insurer’s point of view, the greater the risk of a claim, the greater the risk of a payout. And so the cost of cover is high because of the high level of risk.

Lots of risk factors are used to decide what the premium will be. These include…

  • The car you drive
  • Where you live
  • Your age
  • Your occupation
  • Whether you have made any claims while learning to drive

So why is car insurance so expensive? Because as a group, young drivers are high risk.

How much more expensive is insurance for young drivers?

Comparethemarket.com has crunched the numbers for drivers of different ages, and found that 17 to 19-year-old drivers pay more than four times as much for fully comprehensive insurance than drivers aged 50 to 64.

What can I do to make insurance cost less?

Well, for most young drivers your best bet is a telematics insurance policy. Otherwise known as ‘black box’ insurance, this type of cover uses a clever GPS gadget to keep tabs on your driving. Drive well, pay less – it’s that simple.

You can’t do much about your age or relative lack of experience, but you can do some further training. Many insurers offer discounts for drivers who have completed the Pass Plus course, for example.

Think carefully when shopping for a first car, too. Go for a car with a low insurance group rating (they run from 1 to 50, with 1 being cheapest), and fit extra security such as a steering wheel lock.

Be careful and drive by the book in those crucial first few months of independent driving, and your insurance should cost less when you renew.

*This is based on car policy purchases made via Quotezone by 17 to 21 year old drivers in Jan 21. The prices you could achieve are dependent on your individual circumstances.

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FirstCar has teamed up with QuoteZone to help new drivers find a great deal from the UK’s top insurance providers.


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