New driver insurance: 10 money saving tips

Getting behind the wheel for the first time after passing is exciting. But before you hit the open road, you'll need car insurance. With so many options, rules, and costs to consider, it’s easy to feel overwhelmed. It can also be a pretty expensive ordeal.

That’s why we’ve put together this no-nonsense guide to help new drivers find cover that’s affordable, sensible, and tailored to your needs. With the right knowledge and choices, there are plenty of smart ways to cut costs and keep your premiums down. Here, we'll cover everything you need to know to get started.

What's covered

• Why is car insurance so expensive for young drivers?
• 10 tips to reduce the cost of your insurance
  • Pick a car that's cheap to insure
  • Choose a black box policy
  • Add a parent or experienced driver to your policy
  • Increase your voluntary excess
  • Limit your mileage
  • Pay annually
  • Select your insurance occupation carefully
  • Improve your car's security
  • Consider taking an advanced driving course
  • Avoid modifications
• Quickfire summary

Are you looking for car insurance as a new driver? Get in touch with us! A member of the Howden team would love to help you find the perfect policy! 

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Why is car insurance so expensive for young drivers?

If you've just passed your test, you’ve probably noticed that car insurance quotes for newly qualified drivers can be eye-wateringly high compared to those with more experience. This is because insurance premiums are calculated based on risk, and statistically, younger drivers are more likely to be involved in accidents.

This is essentially down to less experience behind the wheel. Add to that the fact that many young drivers opt for cars that are cheaper to buy but more expensive to insure (i.e. like older models without modern safety features), and it’s easy to see why costs can climb quickly.

The good news is there are still plenty of ways to bring your premium down!

Don't get caught out. Sign up for your MOT reminder. Check MOT

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10 tips to reduce the cost of your insurance

1. Pick a car that's cheap to insure

If you haven’t chosen your first car yet, go for something in a low insurance group. This is a great way for new drivers to keep premiums affordable. Cars in group 1 are the cheapest to insure, while group 50 is the most expensive. Smaller, less powerful vehicles with modern safety features generally fall into lower groups, which translates to lower premiums. So if you're still deciding on a car, make sure you do your research!

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2. Choose a black box policy

A black box (also called a telematics device) is another great way to save money over time. This little device is fitted to your car and monitors your driving habits, tracking things like speed, braking, and acceleration. It then sends this data to your insurer.

So long as you drive safely, (that means no harsh braking, speeding or late-night joy rides!), black box insurance can reduce your premium rate when its time to renew, as it shows your insurer that you are a responsible driver.

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3. Add a parent or experienced driver to your policy

Including an experienced driver, like a parent, as a named driver on your policy can help bring your premium down. This can help lower the risk because it shows that a more experienced driver will also be using the car, reducing the average cost of the policy.

Tip: make sure your named driver regularly uses the car too. If they don’t, and you’re the main driver, that’s called ‘fronting’, which is a type of insurance fraud that can land you in serious trouble.

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4. Increase your voluntary excess

Opting to pay a higher voluntary excess (the amount you agree to pay if you make a claim) can also help reduce the cost. In general, the larger the excess you choose, the lower the premium. Just sure it's an amount you could realistically afford if you ever need to make a claim.

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5. Limit your mileage

The more miles you rack up each year, the more you’re likely to pay for insurance. This is because from an insurer's perspective, the more time you spend on the road, the higher your chances of having an accident.

Reducing your annual mileage can help bring your premium down, especially if you’re not driving every day. Just make sure you're honest with your insurer about how much you drive - failing to report your mileage accurately might cause problems when you claim.

Alternatively, some insurers offer limited mileage policies, which is a type of car insurance designed for drivers who don't drive much each year. It typically offers lower premiums in exchange for agreeing to stay within a certain annual mileage limit. Again, make sure you track how much you drive, because exceeding the mileage on the policy can result in higher premiums or even cancellation.

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6. Pay annually

Paying monthly may seem more manageable for younger people, but it often comes with added interest. In some cases, that could be as much as 30% APR, which adds up quickly over the year.

Tip: If you can afford to pay your premium in one go, it’s nearly always the cheaper option. Think of it as a one-off investment that saves you money in the long run.

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7. Select your insurance occupation carefully</h3

Believe it or not, your job title can affect your insurance premium. Some professions, like hospitality workers or couriers, are seen as higher risk. Others, like teachers or civil servants, may attract lower rates.

Always be honest, but if your role fits more than one category, try a few variations - this could save you money on your premium.

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8. Improve your car's security

Adding security features like alarms, immobilisers, or tracking devices can make your car less attractive to thieves. Tell your insurer about these security measures and they might lower your insurance costs.

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9. Consider taking an advanced driving course

After passing your test, you can also take an advanced driving course like the Pass Plus scheme. It's designed to boost your confidence on the road and help you learn additional skills. Taking additional driving courses demonstrates to your insurer that you're committed to becoming the safest driver you can - making you a lower risk on the road which may result in lower premium rates.

Find out more here: The Pass Plus course: is it actually worth it?

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10. Avoid modifications

The only vehicle modifications that could lower your premium are those that improve the vehicles' safety. These must be industry-approved, and your insurer must be informed before installation.

Modifying your car might seem like a fun idea, but it can seriously bump up your insurance costs. Not only could it attract thieves, but some insurers outright refuse to provide cover for modified cars, and those that do will charge much higher premiums.

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Quickfire summary

Car insurance for young drivers can be pricey due to their lack of driving experience and higher risk of getting into accidents. Thankfully, you can still cut your premium costs.

Start by choosing a car in a low insurance group as these are usually cheaper to cover. Consider choosing a black box policy to reward safe driving, and think about adding a parent or experienced driver to your policy to help lower the risk. Increasing your voluntary excess and limiting your mileage can also help reduce your premium. And if you can afford to pay annually rather than monthly, you’ll avoid interest charges and save in the long run.

Next, boost your car’s security with alarms or trackers, and consider taking an advanced driving course like Pass Plus to show insurers you’re serious about safety. Finally, avoid unnecessary modifications, unless they improve safety, as they’ll likely push your premium up.

With the right choices, you can make car insurance more affordable in no time.

Next guide: The Pass Plus course: is it actually worth it? →

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Sources:

*Brake - Why young drivers are at risk and what can be done about it