Just like anyone else, young drivers need at least third party insurance to legally drive on the road. But this isn't always the best, or cheapest, option.
Exactly what type of cover you need depends on your personal circumstances, and what you want from your cover.
To give you an idea of what each level covers, here’s a rundown of the 3 main ones we compare at Confused.com:
Average insurance costs for young drivers aged 17-25*:
Third party:
£3,787
Third party, fire & theft
£2,712
Fully comprehensive
£2,279
*Confused.com data April - June 2024.
Young drivers pay far more than the national average of £861** for fully comprehensive car insurance.
There are a number of reasons for this, but it mainly comes down to risk. Insurers see younger drivers as riskier to insure due to their lack of experience on the road. They then assume this lack of experience puts new drivers at higher risk of being involved in an accident.
There are stats to support this perception too: government figures show that 20% of all serious or fatal car accidents involve a driver aged 17-25***.
There are other factors other than age that go into calculating your car insurance costs, but it's still a significant one.
**Confused.com price index data Q3 2024.
***According to government statistics 2022
Average insurance costs by age**
17 year olds
£2,727
21 year olds
£1,963
25 year olds
£1,446
30 year olds
£1,194
**Confused.com data Q3 price index data.
Although it can be expensive at the start, the good news for younger drivers is that as they age, their insurance should get cheaper.
There are a few benchmark ages where the cost of your cover should come down significantly.
Assuming everything else stays the same, such as the car you drive and where you live, you should see a noticeable drop in costs at age 21, and again at 25*.
After that your costs should continue to decrease until you hit around 75*, where they begin to rise again.
Louise Thomas, our motor insurance expert, explains how younger drivers can save money on car insurance. The information in this video is also available as a text transcript.
**Single annual policy. New and former Paramount+ subscribers only who sign up at ParamountPlus.com. Subscription required. Auto-renews unless cancelled. 18+. Just Eat website account required, geographical exclusions apply. The year-round reward is provided by Greggs, and consists of one regular hot drink per month for a year, only available via the Confused.com app. T&Cs apply.
There are a few types of insurance that could save younger drivers money, though this isn’t guaranteed. But if you’re looking for a way to bring down your costs, they could be worth considering.
Fully comprehensive
Black box
Temporary
+Confused.com data April - June 2024, based on cost of a policy for drivers aged 17-25.
++Based on average customer prices paid from Tempcover data for learner drivers June 2024.
While your insurance should naturally get cheaper as you age, there are a few things young drivers can do to get a better deal in the meantime.
Add a named driver: Adding another, more experienced driver to your policy is an easy way to save. This could be a partner, parent or other family member, but whoever you add should at least occasionally drive the car.
Pay annually: Paying upfront, rather than monthly, is one of the quickest ways to save. Our data shows that paying annually could save you up to 50%* on their insurance, if you can afford to do so.
Estimate your mileage accurately: When you get a quote, we’ll ask for your estimated annual mileage. It can be tricky to get right, but being accurate is an easy way to save. Insure yourself for far too many miles, and you could be paying for cover you don’t need. The average mileage selected by our customers is around 6,623*.
Change your excess: Your excess is the amount you agree to pay towards the cost of any claims you make. The most common excess chosen by our customers is £250*, but opting to pay a bit more, or sometimes even a bit less, could help bring the costs of your cover down. Experiment with your excess amount when comparing quotes to see if you could save.
Compare quotes: it’s quick, easy and could save you money. We’ll show you our best quotes in just a few easy steps, helping you find the cover you need for the right price.
*Confused.com data Q2 2024.
"You might think taking out a lower level of insurance is a good way to save, but third party policies are rarely cheaper than fully comprehensive ones. You’ll get a higher level of cover with a fully comp policy too, so it’s often the most sensible choice for a young driver."
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Page last reviewed: 16 October 2024
Reviewed by: Louise Thomas
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