Drivers
Why is car insurance so expensive for young drivers?
Why insurers usually charge young and newly qualified drivers more, how risk and the cost of claims affect the price, and what may help bring it down.
If you are a young driver, there is a good chance you are frustrated by the price of car insurance. You may have searched everywhere for an explanation. Here it is in plain terms.
Many young drivers feel the system is unfair. It is true that it is hard to get a lower price without experience, and the only way to get experience is to drive. Until then, inexperience usually means higher premiums.
Everything is calculated on risk
The first thing to understand is that insurance prices are based on risk. It isn't personal, and insurers know that plenty of young drivers are careful. But the evidence they use shows that younger drivers, especially in their first years after passing, are more likely to be involved in an accident than more experienced drivers, and insurers set their prices with that in mind.
Because there is a greater chance they will have to pay out for a claim, insurers charge younger drivers more for cover.
Claims can cost more too
It isn't only about how likely an accident is. Accidents involving young drivers can also be more serious, which can mean larger repair bills and more costly injury claims. If an insurer expects to pay out more, on average, for a group of drivers, it will charge that group more to cover those costs.
Other things that affect the price
As with any driver, many other factors play a part, including:
- the car you drive, its insurance group and its value
- where you live and where the car is kept overnight
- how many miles you drive each year
- what you use the car for
- any previous claims or convictions
What can help
The good news is that prices usually fall as you build up experience and a record without claims. Some things that may help along the way:
- Choose your car carefully. Smaller cars in low insurance groups tend to cost less to insure.
- Consider telematics. A black box policy records how you drive, and some insurers use it to reward careful driving.
- Build a no claims bonus. Each claim-free year can make a difference at renewal.
- Be accurate. Give honest details about your mileage, where the car is kept and who drives it. Never name someone else as the main driver when you are; that is fronting, and it is fraud.
- Think about extra training. Some insurers may take recognised advanced driving courses into account.
Getting cover as a young driver
Kompare puts young drivers in touch with a broker from our panel who can talk through quotes. Find out more on our young driver insurance page, see how we work, or contact us if you have questions.