Cheapest Car Insurance for First Time Drivers

After passing your drivers’ test, you will want to get out on the road. If it’s your first time on the road, you are considered a new driver, so you probably want to explore your options to find the cheapest car insurance for first time drivers. To help you determine fair costs, there are several things to think about what to expect in your search.

Typical Costs of Car Insurance in the UK

Drivers are required to have car insurance in the UK, and the average cost, according to the Association of British Insurers, most pay is somewhere around £485 per year. This ranges upwards to around £900 for full comprehensive coverage.

You may wonder what can influence the cost of insurance to be so extreme, and the number one factor is your age. Insurance companies also consider the car you drive, where you live, and the statistical probability of having an accident. When all aspects are combined, insurance companies will give you a quote, and if you’re low risk, your quote will be lower.

As you get older, your insurance premiums will go down, but it takes time and a good driving record. People in their 50s tend to pay the least amount of insurance, so it won’t stay high forever. A young new driver can expect higher costs, where an older new driver may pay less depending on relevant factors.

Your occupation may also impact your insurance coverage as certain industries are considered high-risk. If this is the case, insurance premiums will reflect the job you have depending on the company you choose, along with the car insurance group your car belongs to at the time.

The Cost of Car Insurance for a First Time Driver

For people in their 20s, you can expect premiums to be upwards of over £1000 annually. Premiums you end up paying are also directly related to the coverage you choose. As a first-time driver, you have a lot to think about.

For example, you need to think about replacing your car in a worst-case scenario in picking your coverage. If you think you would have difficulty replacing your car if it were written off as a result of an accident, you need comprehensive coverage.

Alternatively, suppose you are driving a car that isn’t too expensive, to begin with. In that case, you may want to choose the coverage that only covers liability instead of comprehensive to push down your premiums. This is known as third-party insurance and only covers damage you cause to someone else’s property. You can further decrease your risk by consistently having a good driving record, so your premiums will fall when you go to renew.

Less mileage can also result in lower insurance premiums, so if you don’t plan to do a lot of driving, let the insurance company know. Young first-time drivers can also make premiums go further down by including parents on their policies as secondary drivers.

Cheapest Type of Car to Insure in the UK

In the UK, you have what is called car insurance groups. These groups are made up of cars that range from the cheapest to the most expensive to insure. Insurance companies use a group rating system to help decide how much insurance you might need for your car.

If you purchase a car in the lower insurance groups, your premiums will automatically be lower. It’s generally safe to say that the cheaper the car, the cheaper the insurance will be. If you want to find the cheapest car insurance, you’ll find cars like the Fiat 500 and the Peugeot 107 in the lower car insurance groups for the youngest demographics. Other options for cars in the lower insurance groups include the Volkswagen Up!, the Citroen C1, and the Ford Ka. You’ll notice that none of these are particularly luxurious, but every one of them will be cheaper to insure for either comprehensive or third-party insurance companies.

Insurance groups are decided by the Association of British Insurers along with Lloyds Market Association and Thatcham Research. These organisations base group ratings on new car values combined with the cost of expected repairs. The prices of replacement parts are also factors, as is the length of time for those repairs. If it takes longer to repair, then the car goes in a higher group.

It should be no surprise that high-performance cars are in the highest groups, so if you want to get the cheapest car insurance for first time drivers, you’ll want to stay away from these types of cars. Safety features also impact group ratings, as does overall security for the vehicle.

How to Get Cheaper Car Insurance

Everyone wants to lower insurance premiums, but many don’t realise there are ways to push down insurance costs that won’t cause future problems. For example, if you agree to pay a voluntary excess on top of your compulsory excess, your premiums will go down, but you’ll have a higher deductible.

Young drivers can also benefit from being on their parents’ insurance or someone else with a good driving record. To reap that benefit, the primary person needs to be over 25 years old and not have any claims in at least the past five years. This person would be considered a named driver but be sure not to list that person as the front driver because if that’s not the case, you may end up facing legal trouble.

Don’t pay in instalments if it’s an option for your insurance company. Instead, opt to pay the price upfront if you can because you’ll save money in the long run. You may also want to consider taking an advanced driver course because some insurance companies will lower your premiums based on the successful completion of the class. If you’re a good driver, you can also qualify for no-claims bonuses from different companies. They’ll reduce the cost over time as you keep your record clean.

Some will also choose to have a smartbox installed in their car. A smartbox is typically part of a pay-as-you-drive policy. The smartbox records your movements like the rate of acceleration, how often you apply your brakes, the way you go around corners, and how much time you spend driving. Your driving habits are then submitted to your insurance company every 90 days to make sure your premiums reflect the way you drive. If you’re a lousy driver, this could backfire and result in getting your policy cancelled, so it’s a good idea to work on being an excellent driver under this type of coverage.

Choosing Car Insurance for New Drivers

Getting the right insurance can be challenging for new drivers. Make sure you shop around for the best policy to get quotes you can compare. Ask about coverage details so you can make sure you get the best coverage for your money.

In the UK, there are insurance programs designed for drivers between the ages of 17 and 25, so search for specialist car insurers for that age group. Explore social media platforms for deals that are posted exclusively to their followers. You might surprise yourself at what kind of deals you can find for your needs.

You’ll also want to check into the insurance company before you sign up for coverage. Always ask for a copy of the policy before you agree to it because you might miss something that you need or want. Likewise, you may have coverage that you don’t need, and reading it is the best way to avoid paying too much.

Always be aware of scams, too, because fake insurers tend to focus on new drivers that don’t know any better. To help you sort out scams, request the authorisation information from the insurance company. The Financial Conduct Authority or FCA must authorise companies and brokers. If they can’t provide this information, then stay away from that company or broker.

A Few Final Thoughts on the Cheapest Car Insurance for First Time Drivers

As a new driver looking for insurance, you need to understand how the typical costs of car insurance are calculated. Once you do, it is much easier to comprehend why a first-time driver has a different set of prices. Choosing a car in the right insurance group makes a difference, too, in how much you can expect to pay.

As prices are typically higher for new drivers, you do have ways to get lower premiums, but it may take some work on your part. Call around, compare quotes, and see what you can come up with before making a final decision on your car insurance. Once you have all the information, you are in the position to make a good choice based on what you need and what you can afford to pay in premiums.

Don’t forget to make sure the insurer or broker is legitimate before agreeing to coverage so that you don’t get scammed. Read through the policy, check credentials, and you’ll be ready to get out on the open road with insurance that fulfils your requirements.