Is it possible to get car insurance for young drivers under £1,000?

By Bob Atoo
October 17, 2017

It has always been the case that young people have to pay more for car insurance. New and inexperienced drivers are seen as a higher risk of making a claim, and therefore have to pay the most expensive premiums.

However, the current situation with the recent increases in Insurance Premium Tax means that young people are now paying more than ever for car insurance.

The average cost of young driver insurance is now over £2,000 per year.

Despite the high premiums faced by young drivers, it is possible to reduce the cost of car insurance down to a more manageable yearly fee.

Below we identify the top tips to reduce the cost, and to see if it is actually possible to get young driver insurance for £1,000.

Choosing the right level of cover

The first step to reducing the cost of insurance is to think about what level of cover you need for your first car.

The three main options are: Third Party Only (TPO); Third Party, Fire and Theft (TPFT) and Comprehensive.

If you’re unsure about what each of these mean, read our guide: What does ‘third party’ and ‘comprehensive’ car insurance actually mean?

As a young driver, the big question here is: do you really need comprehensive insurance?

If you want the full peace of mind and added policy benefits that comprehensive insurance offers, and can afford to pay for it, then that is the best option.

However, if you are looking to save money on young driver insurance then you will have to consider Third Party Only or Third Party, Fire and Theft insurance.

In terms of insurance, the minimum legal requirement to drive on UK roads is Third Party Only cover – which guarantees that you are at least covered for any damage you cause to a third party.

Due to the limited amount of cover it offers, TPO cover is unsurprisingly the cheapest option for young drivers.

As you are not covered for any damage to your car, the next point is also important…

Choose a sensible first car

Whatever level of cover you choose, the type of car you are insuring will make a big difference to the cost of your premium.

The car insurance industry uses a group system which assigns different car models to different insurance groups. Depending on what group your car is in, you are likely to pay either more or less on your insurance. The groups range from 1-50, with 1 being the cheapest to insurance and 50 being the most expensive.

Cars are split into their insurance groups based on factors such as the engine size, the value of the vehicle, the cost of repairs/spare parts etc.

If you want cheap young driver insurance then it makes sense to pick a car that is in one of the lowest car insurance groups. It also happens that these types of cars are perfect for young drivers to hone their skills and build confidence.

Policy excess

Your policy excess is the amount of money you have to pay towards any claim you make. The higher the excess (i.e. the higher the amount you are willing to pay towards a claim), the lower the premium.

Many insurers also allow you to add a voluntary excess, which also needs to be paid in the event of a claim.

So, the higher you make the excess and voluntary excess, the lower your premium will be.

Make sure you set it to a level you can afford to pay if you do have a claim.

Get a black box policy

Black box insurance is a popular choice for young drivers as it means they can actively participate in making their car insurance cheaper.

The insurer will fit a black box in your car, and track how you drive against a variety of different risk factors to calculate how much insurance you pay.

The black box is looking at things like how fast you drive, how fast you accelerate, hard braking, what time of the day your drive, how far you drive etc.

This means if you want to pay less than £1,000 for young driver insurance then having a black box/telematics policy is recommended.

Think about car security

Naturally, the less likely your car is to be stolen or damaged, the more likely you are to pay less for your insurance.

When you fill out an online quote for insurance, it will ask you where the car will be kept overnight. If you will just be leaving the car parked on the road outside, you can expect a higher premium than someone who will park it on a driveway or even in a garage.

Obviously, this option isn’t available to everyone. However, there are other steps to improving the security of the car. Fitting a car alarm, immobiliser or any other anti-theft device will likely get you a cheaper insurance premium.

Get a quote

If you are looking for a quote for car insurance for young drivers under £1,000, then start comparing with Bobatoo…

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