Car Insurance for Young Drivers

20th February 2018

By James Story

You’ve passed your driving test and found an ideal car, but it is crucial that you consider car insurance before you make your final purchase. As a young driver, insurers deem you to be more likely to be involved in a crash, so your costs could be much higher than anticipated.

Before you get behind the wheel of a new vehicle, make sure you consider these factors:


How is car insurance different for young drivers?

New young drivers are typically more expensive to insure than experienced motorists as they are viewed as being more likely to have an accident.

With this in mind, it is important that newly qualified drivers do their research in advance and choose vehicles that have affordable insurance, or they could be left with unexpectedly high running costs for their vehicle.

Even if you have driven for a few years and are looking to switch insurers, it may take several years of no claims in order for your costs to drop significantly.

What factors affect car insurance for young drivers?

Car insurance costs are affected by a range of different factors. Age is the biggest factor, as drivers under the age of 25 typically pay more on their premiums – their young age and lack of experience meaning they are statistically more likely to be involved in an accident. This means finding cheap car insurance for new young drivers requires research and knowledge of the market.

However, there are plenty of other factors that affect car insurance costs for drivers, including:


If you live in an area with high levels of vehicle crime, you could end up paying more for your cover. On the other hand, postcodes with low crime stats can help to reduce insurance.


The value of your car is a massive factor for insurers, as it is the amount they will need to pay if it is stolen or written off. This works both ways, too, as older cars could be at a higher risk of causing accidents.

Engine type

Larger engines tend to be more expensive to insure than smaller alternatives, so smaller and less powerful cars could be better options for young drivers.


A high mileage can be a worry for insurers as it is an indicator of wear on an engine, meaning that choosing a vehicle with low mileage can help young drivers save a significant amount of money.


A person’s occupation will have a big impact on insurance costs. If a young driver is using their vehicle for commuting, costs could rise and jobs that involve a lot of travelling during work hours can lead to an increase in insurance.

How to get cheap car insurance for young drivers

Although age is one factor that young drivers cannot change, there are some smart ways that young drivers can reduce their costs:

Add a parent as a named driver

If one of your parents have driven for several years, adding them as a named driver on your policy can reduce your costs.

Purchase a cheap car to insure

All cars are put into one of 50 insurance groups, and the lower groups are the cheapest to insure. Make sure you check the group of any cars you are looking at before committing to a purchase.

Choose a black box policy

Black box policies use an app or small device to track usage and driving, allowing insurers to use behaviour to set insurance prices. Therefore, if you drive sensibly, you could save a lot of money.

Insurance costs for drivers can drop significantly after a few years of driving with no claims, but those first few years on the road require some research. For help, use the giffgaff car insurance service, which will give you policy options based on your vehicle and individual circumstances.

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