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Student car insurance is notoriously expensive, with the average UK student paying around £2,722 per year. This guide explains why premiums are so high for those in full-time education and what you can do to bring costs down legally.
2 January 2026
Summary: Student car insurance costs more because young drivers face higher premiums. The average student pays around £2,722 per year. You can cut costs legally by using telematics (black box) insurance, choosing a low-group car, and comparing quotes. Never commit "fronting" – it's fraud and can invalidate your cover.
Student car insurance is motor cover for those in full-time education who need to drive whilst at university or college. It works the same as standard car insurance but often costs more due to age and inexperience factors.
If you own a car or drive one regularly, you must have insurance by law. This applies whether you take your car to university or leave it at home. Driving without valid cover can result in a £300 fixed penalty, six points on your licence, and even having your car seized.
Students typically pay far more than older, experienced drivers. According to Uswitch data from June 2024 to June 2025, students paid the highest premiums of any occupation group, with an average annual quote of £2,722.
Young drivers aged 17 to 24 face the steepest costs overall. Honest John reports that this age group pays around £2,051 on average, though this has fallen from £2,826 in 2024.
Your exact premium depends on several factors:
• Your age and driving experience – younger drivers pay more
• Where you live – city centres cost more than rural areas
• The car you drive – insurance groups range from 1 (cheapest) to 50
• Your no claims bonus – each claim-free year reduces your premium
• Annual mileage – driving less usually means paying less
Age Group | Average Annual Premium |
17-20 | £3,350 |
21-24 | £2,371 |
50+ | Under £1,000 |
Source: Uswitch, June 2024-2025
Telematics insurance uses a small device or smartphone app to track how you drive. Safe driving leads to lower premiums.
According to Which?, telematics was the cheapest option 42% of the time in November 2025. Where it was cheaper, drivers saved £228 on average. For young drivers, the savings are much bigger – Consumer Intelligence found that drivers aged 17 to 19 could save over £2,000 compared to standard policies.
GlobalData's 2024 UK Insurance Consumer Survey found that 68% of 18 to 25-year-olds had some form of telematics policy. This compares to 48.3% of those aged 26 and above.
Compare telematics car insurance quotes to see if you could save.
Cars are grouped from 1 to 50 for insurance purposes. Lower groups cost less to insure. Small cars with modest engines, good safety features, and cheap repair costs fall into lower groups.
Popular student cars like the Vauxhall Corsa, Ford Fiesta, and Volkswagen Polo often sit in groups 1 to 10.
If you'd like to know more about the cheapest cars to insure checkout our 'Cheapest Cars to insure' guide - where we cover everything you need.
Prices vary widely between insurers. You should always use a comparison service when shopping for insurance to see a large range of prices, this is also true when you come to renew as there may be savings to be had.
Get a car insurance quote in minutes.
Paying monthly usually means paying interest. If you can afford the lump sum, paying annually saves money over the year.
Adding an experienced driver to your policy can sometimes reduce your premium. However, you must be honest about who drives the car most.
Fronting is when someone falsely claims to be the main driver of a car to get a cheaper premium. It is a form of insurance fraud and is illegal.
A common example: a parent insures a car in their own name but lists their student child as a "named driver", even though the child drives the car most of the time. This might seem harmless, but it can have serious consequences.
According to a recent survey completed by Go Compare in August 2025, nearly 7 in 10 UK parents (69%) admitted they have or would consider fronting to cut costs. However, if caught:
• Your policy could be cancelled and claims refused
• You could face prosecution for fraud
• You may struggle to get affordable insurance in the future
• Both parent and child could end up with a criminal record
The main driver on a policy must always be the person who drives the car most often. If your child takes the car to university and uses it daily, they are the main driver – not you.
If you're taking your car to university, you must update your insurer with your new term-time address. This is important because:
• Your premium may change based on your new location
• Failing to update your address could invalidate your cover
• City locations often have higher premiums than rural areas
You should also change your occupation to "student" if you haven't already. While this may affect your premium, providing accurate information is essential for valid cover.
If you're leaving your car at home and won't be using it, consider whether a parent could become the main driver. If the car won't be used at all, you could make a SORN (Statutory Off Road Notification) to avoid paying tax and insurance – but remember, you cannot park the car on a public road if you do this.
• Students pay some of the highest car insurance premiums – around £2,722 on average
• Telematics (black box) insurance can save young drivers over £2,000
• Always compare quotes from multiple insurers
• Never commit fronting – it's fraud and can have serious consequences
• Update your insurer if you take your car to university
Uswitch, 100+ UK Car Insurance Statistics 2025 – uswitch.com
Honest John, Latest UK Car Insurance Statistics July 2025 – honestjohn.co.uk
Which?, Black box car insurance savings, November 2025 – which.co.uk
GlobalData/Yahoo Finance, Younger drivers telematics survey 2024 – yahoo.com
Go.Compare, Fronting survey August 2025 – gocompare.com
MoneySuperMarket, What is car insurance fronting – moneysupermarket.com
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