Car Insurance for New Drivers: 7 Ways to Get It Cheap!

Getting your first car is like a dream come true. However, this excitement can quickly fade when you see the high cost of car insurance for new drivers.

Today, we’ll try to understand the reasons why new drivers can’t get cheap car insurance. Along with that, we’ll share tips you can apply to find cheap car insurance for new drivers.

So, without any further ado, let’s get started!

Why is Car Insurance for New Drivers So Expensive?

Car insurance for new drivers is considerably more expensive than insurance for experienced drivers. There are two primary reasons for this.

Firstly, insurance companies consider that inexperienced drivers are more likely to get into an accident. Secondly, you can’t get any no-claim discounts due to the lack of driving history.

Let’s examine both reasons one by one.

Insurance companies consider new drivers to be at a higher risk of being in an accident. And they are not wrong about it. Studies show that 23% of young drivers get into an accident within two years of passing their driving test. So, this elevated risk significantly hikes the insurance premiums. Just because insurers have to account for the likelihood of having to pay out claims.

Another critical factor is the inability of new drivers to accumulate a No Claims Discount (NCD). An NCD rewards policyholders with reduced premiums for each consecutive year they do not make a claim. New drivers start without any claim history. So, they cannot benefit from this discount until they have been insured for an entire year without claims.

Therefore, being viewed as high-risk drivers and lacking discounts can lead to new drivers paying much higher premium rates.

7 Tips to Get Cheap Car Insurance for New Drivers

Now that you understand why new drivers can’t get cheap car insurance, let’s see how to mitigate these issues. Here are the 7 tips to buy the cheapest car insurance for new drivers.

1. Choose the Correct Insurance Type

The first thing you need to do as a new driver is to research the available insurance types. There are so many different types of policies you can buy. So, you need to research extensively and choose wisely. This will help you the most when it comes to buying a cheap insurance policy.

Firstly, you can consider the named driver policies. Non-owner insurance allows you to be added to the policy of other people, such as your parents. The benefit is that it often comes at a lower rate. You get an advantage from their driving experience, which can help lower your premium.

Another excellent choice is a black box insurance policy, also known as telematics insurance. This policy allows the insurers to monitor your driving habits. So, if you drive safely, you could see lower premiums at renewal. This is beneficial for new drivers with little history, as insurers can assess risk based on your actual driving behavior.

Similarly, there are options like low mileage and pay-as-you-go policies, which are great if you don’t drive much. You can also choose for a temporary car insurance if that suits you.

Then, finally, the choices come down to the third party, third party plus fire and theft, and comprehensive insurance. Again, here, you have to consider your specific needs and requirements.

Whatever you choose to do, understand all these options first. It will help you choose the right insurance type that fits your driving habits and budget.

2. Choose a Small and Cheap Car

This is probably the second most important tip. Choosing a small and cheaper car can go a long way toward reducing your insurance premiums. This is true not only for new drivers but also for experienced drivers. However, for new drivers, it is even more important.

Post-2010, all cars are divided into 50 insurance groups. The cars in initial groups have higher premiums, while for those in lower groups, you have to pay less. Small cars typically fall into the lowest groups. This is because smaller cars have smaller engines. And cars with smaller engines are less likely to cause high-speed accidents. Insurers view these cars as lower risk.

So, opting for a small and cheaper car can help keep your insurance premiums down. This is particularly important for new drivers already facing higher rates due to inexperience.

3. Pass an Advanced Driving Course

Taking an advanced driving course like Pass Plus can benefit you as a new driver when it comes to insurance. Many insurance companies offer discounts for drivers who complete the Pass Plus or any other advanced driving course.

This is because insurance companies view these certifications as evidence of your enhanced driving skills. It demonstrates a reduced likelihood of accidents. This can lead to substantial savings on your insurance premiums as a new driver.

4. Get Multiple Quotes

We can’t stress this point enough. Always shop around for quotes from different insurers. Prices can vary significantly between companies, so obtaining multiple quotes is essential. You can use comparison websites to streamline this process and find the best deal tailored to your needs.

5. Opt for Smart Modifications

Opting for smart modifications can also help your cause of securing the cheapest car insurance for new drivers. Some modifications we recommend are electronic immobilisers, security alarms, and dash cams. All these modifications demonstrate that you’ve taken steps to protect your vehicle. Therefore, insurers recognise this and reduce your insurance premiums.

However, there are certain aesthetic modifications which you should never go for as a new driver. Things like spoilers and alloy wheels might seem insignificant, but they are very important to insurers. They view them as performance modifications.

This is why it is important to go for smart modifications only if you are a new driver.

6. Pay Higher Excess

Excess is the amount you pay when making a claim. It consists of two parts: compulsory and voluntary. Your insurer sets the compulsory excess and cannot be changed. The voluntary excess is the amount you choose to add on top of this.

By opting for a higher voluntary excess, you signal to insurers that you are willing to take financial responsibility. So, when you agree to a higher excess, insurers may reduce your premium. They view you as less likely to claim for minor incidents since you’ll have to pay more out of pocket.

7. Pay Annually

Lastly, paying for your insurance annually rather than monthly can save you a lot of money. When you pay annually, you avoid extra fees associated with monthly payments. Insurers often add interest charges when you choose to pay in instalments. This can increase your total premium by a substantial amount over the year. You can save this money by choosing to pay annually.

Frequently Asked Questions

1. What types of car insurance are there for new drivers?

As a new driver, you primarily have three types of car insurance to choose from:

• Third-Party Insurance: Third-party insurance is the minimum legal requirement for driving in the UK. This policy covers damages you cause to other vehicles or property in an accident. However, it does not cover any damage to your own vehicle.
• Third-Party, Fire and Theft Insurance: Third-party, fire and theft insurance offers more coverage than basic third-party insurance. In addition to covering damages to other parties, this policy protects you if your car is stolen or damaged by fire. However, like third-party insurance, it does not cover repairs to your own vehicle after an accident.
• Comprehensive Insurance: Comprehensive insurance provides the highest level of protection. It covers damages to your vehicle and injuries to yourself and others involved in an accident. This policy also includes coverage for theft and fire damage.

2. How much does insurance cost for new drivers?

As a new driver, you can expect to pay between £1,500 and £2,000 annually for your insurance policy. However, if you are 17-24 years old, your costs may rise significantly. Premiums for this age group can reach around £2,877 or even higher.

However, remember that several factors influence your insurance costs other than age. It includes your driving experience, the type of vehicle you drive, and your location as well.

For instance, young drivers in London may have to pay around £3,108 per year. In contrast, those in the South West pay closer to £1,646. So, the answer to this question is subjective.

3. What is the cheapest car insurance for young drivers?

It varies. There is no single cheapest car insurance for young drivers. It depends on several factors. To find the cheapest car insurance for young drivers, you need to follow the tips shared above. Keeping your mileage low, choosing insurance type wisely, and increasing your excess can help lower your premiums.

4. What are the cheapest cars to insure for new drivers?

Generally, the cars in the lower insurance groups are the cheapest cars to insure for new drivers. Ford Fiesta and Hyundai i10 remain classic picks for new drivers. Kia Picanto is another great option. The Volkswagen Polo is popular among new drivers as well.

Wrapping Up: How to Get Cheap Car Insurance for New Drivers?

Getting cheap car insurance as a new driver can be challenging, but it’s not impossible. You can significantly reduce your premiums by implementing the tips outlined in this blog post.

Remember, patience and proactive steps are key. Your insurance rates will likely decrease as you gain experience and a clean driving record.

Always shop around, compare quotes, and don’t hesitate to ask your insurance provider about any potential discounts or savings.