Young Drivers Car Insurance.

Young Driver Car Insurance: Complete Guide for Ages 17-25

Finding affordable car insurance as a young driver is one of the biggest challenges new motorists face. With average premiums for 17-year-olds exceeding £2,000 per year[1], it's no wonder young drivers spend significant time searching for better deals. The good news? By understanding why premiums are high and taking strategic steps to reduce costs, young drivers can find more affordable cover without compromising on quality.

Why Is Young Driver Insurance So Expensive?

Young driver insurance costs significantly more than policies for experienced motorists, and this isn't arbitrary pricing – it's based on statistical risk data that insurers are required to use under FCA regulations.

Accident Statistics

According to Department for Transport data, drivers aged 17-19 represent just 1.5% of UK licence holders but are involved in 9% of serious and fatal accidents[4]. The ABI notes that drivers aged 17-24 make up only 7% of licence holders yet are involved in over 20% of fatal and serious collisions[2]. Young male drivers aged 17-24 are four times more likely to be killed or seriously injured while driving compared to all drivers aged 25 and over[5]. This disproportionate accident rate means insurers face higher claims costs for young drivers, which is directly reflected in premiums.

Lack of Experience

Road safety research from RoSPA and the Department for Transport shows that inexperienced drivers are statistically more likely to make errors in judgement during complex road situations, struggle with hazard perception and anticipation, underestimate risks in challenging conditions like rain, darkness, and motorways, and be involved in single-vehicle accidents due to speed or loss of control[6][7]. Under the New Drivers Act 1995, new drivers are on probation for two years and face licence revocation at just six penalty points[5].

Claims Severity

When young drivers are involved in accidents, the claims tend to be more costly. Higher speeds are frequently involved, multiple passengers increase injury claims, accidents are more likely to involve total write-offs, and medical expenses and third-party injury costs are substantial[8]. The ABI reported that motor insurers paid out a record £11.7 billion in car insurance claims in 2024[9], with rising repair costs and vehicle complexity making every claim more expensive.

Average Young Driver Insurance Costs

Here's what young drivers typically pay for car insurance in the UK, based on industry data from the Association of British Insurers and Quotezone[1][10]:

These are indicative averages based on comprehensive cover. Actual costs vary based on location, vehicle, driving record, and cover level. Drivers in London and the West Midlands pay significantly more than those in rural areas[10].

Types of Young Driver Insurance

Black Box (Telematics) Insurance

A small device installed in your car or a smartphone app monitors your driving behaviour – including speed, braking, cornering, and time of day. The ABI reports that safe young drivers using telematics can see their premiums fall by 25% or more after just one year[2]. This makes it one of the most effective tools for reducing young driver insurance costs.

Read our complete black box car insurance guide for full details.

Named Driver on Parents' Policy

Being added as a named driver on a parent or guardian's existing policy typically costs £300-£800 per year[11] – significantly less than a standalone policy. This is suitable for young drivers who use the family car occasionally rather than as their primary vehicle.

Limitations of being a named driver: you don't build your own no claims bonus, any claims affect the main policyholder's record, and it may not be suitable if you drive the car regularly.

Standard Young Driver Policy

A traditional comprehensive or third party policy in your own name. The key benefit is that you build your own no claims bonus from day one – five years of claim-free driving can reduce premiums by up to 75%[3]. You also get complete control over your policy, flexibility to add extras, and no restrictions on when or how you drive. Our fully comprehensive insurance guide explains the different cover levels in detail.

Learner Driver Insurance

Short-term policies covering learner drivers practising in someone else's car, typically costing £15-40 per day or £200-400 for longer periods. This protects the car owner's main policy and no claims bonus while you learn. Our guide on whether your parents can teach you to drive covers the practicalities of learning with family.

Best Cars for Young Drivers to Insure

Choosing the right car is crucial for affordable insurance. Vehicle choice alone can impact premiums dramatically – a car in insurance group 1 might cost half as much to insure as one in group 20. Every car in the UK is assigned to an insurance group from 1 to 50 by Thatcham Research, based on repair costs, performance, safety features, and theft risk[13].

Cheapest Cars for Young Drivers (Insurance Groups 1-3)

For a deeper look at the cheapest vehicles to insure, read our full cheapest cars to insure guide.

Cars Young Drivers Should Avoid

Hot hatchbacks and performance variants are tempting but hugely expensive to insure as a young driver:

Any modifications to your car – even cosmetic ones like alloy wheels – can increase premiums by 20-50%[14]. Read our car modifications and insurance guide before making any changes to your vehicle.

How to Reduce Your Insurance Costs

Young Driver Insurance Discounts

Several discounts are specifically available to young drivers. Not every insurer offers all of these, which is why comparing quotes is essential.

If you're a student, our student car insurance page covers additional ways to reduce your premium while in full-time education.

Common Mistakes to Avoid

Frequently Asked Questions

Can I get insurance as a 17-year-old with no driving experience?

Yes. All insurers must offer quotes to 17-year-olds with a provisional or full licence under FCA regulations[12]. Expect to pay £2,000-3,000+ for your first year[1], with prices reducing as you gain experience and build a no claims bonus.

Is black box insurance worth it for young drivers?

For safe, responsible drivers, yes. The ABI confirms that safe young drivers with telematics can see premiums fall by 25% or more after one year[2]. However, if you drive late at night frequently or have aggressive driving habits, you might not see savings. Our black box insurance guide explains the pros and cons in full.

When is the best time to buy young driver insurance?

Research suggests purchasing insurance 20-26 days before you need cover typically delivers the best prices. Never drive without cover – it's illegal under the Road Traffic Act 1988 and can result in prosecution, penalty points, and your car being seized[21].

Should I get comprehensive or third party insurance?

Always compare actual quotes for both. Comprehensive cover is often cheaper than third party for many young drivers because insurers view those choosing comprehensive as lower-risk[20]. Comprehensive also offers far better protection, particularly if your car is worth more than a few hundred pounds. Our fully comprehensive insurance guide breaks down exactly what's included.

How quickly can I build a no claims bonus?

You earn one year of no claims bonus for every full year you hold a policy without making a fault claim. After five years, your discount typically reaches 60-75%[3], which on a young driver premium of £2,000+ represents savings of over £1,200 per year. This is why protecting your NCB is so important – read our no claims bonus protection guide for advice.