Cheapest car insurance for new drivers – which is the best?

5 min Read Published: 10 Nov 2022

Which car insurance is best for new drivers?

If you have recently passed your driving test, you may wonder which car insurance is best for you as a new driver, particularly because car insurance is usually more expensive for inexperienced drivers and even more so if you are aged under 25. In this article, we look at the best car insurance for new drivers as well as the cost of car insurance for new drivers and how to buy the best car insurance policy if you are a new driver.

Do I need car insurance?

Car insurance is a mandatory requirement in the UK if you drive on UK roads and third-party insurance is the legal minimum requirement. If you are a new driver you need to have at least third-party insurance before you can drive on UK roads. If you are caught driving without insurance you could be fined and face points on your licence as well as risk your vehicle being taken away.

There are three types of car insurance policies to choose from; fully comprehensive, third-party, fire and theft and third-party insurance and we explain the differences between the types in our article 'What are the different types of car insurance?'. To find out which car insurance is best for you, read our article 'What car insurance do I need?'

Best car insurance for new drivers

If you are a new driver you will need to purchase a car insurance policy before you can legally drive on public roads in the UK. Fully comprehensive car insurance is the most extensive car insurance but can be expensive, so you will need to compare the cost of all policies to find out the one that works best for your budget. However, despite offering the most coverage, fully comprehensive insurance is not always the most expensive.

In the following comparison tables, we compare some of the best insurance companies for new drivers for fully comprehensive, third party, fire and theft and third party car insurance policies. The quotes are based on an 18-year-old new driver that lives in the South East and has no driving experience. The vehicle used to compile the quotes is a 2018 plate Citroen C1. We have assumed a maximum annual mileage of 10,000 and the insurance covers driving for social activities and commuting to and from work. We have compared quotes with and without a parental-named driver on the policy to show how varying factors can affect the cost. For tips on ways to reduce the cost of new driver car insurance click here.

Best fully comprehensive car insurance for new drivers

Insurer Annual Price  Annual Price with named driver Total Excess (voluntary and compulsory)  Telematics Insurance 
Admiral LittleBox £1,927.79 £2,090.21 £600 tick
DriveXpert from Privilege £1,957.44 £1,757.02 £800 tick
Churchill DriveSure £1,977.21 £1,774.76 £800 tick
Carrot £2,092.55 £1,892.54 £1,100 tick
RAC Black Box £2,461.12 £2,011.75 £750 tick

(Quotes correct as of 02/11/22) 

Best third party, fire and theft car insurance for new drivers

Insurer Annual Price  Annual Price with named driver Total Excess (voluntary and compulsory)  Telematics Insurance 
RAC Black Box £2,062.70 £1,699.15 £500 tick
Wise Driving £2,090.13 £1,723.18 £500 tick
Marmalade £2,452.15 £2,056.86 £600 tick
Admiral LittleBox £2,208.70 £2,388.43 £0 tick
Hastings Direct youdrive £3,470.24 £2,652.30 £390 tick

(Quotes correct as of 02/11/22) 

Best third party car insurance for new drivers

Insurer Annual Price  Annual Price with named driver Total Excess (voluntary and compulsory)  Telematics Insurance 
Admiral LittleBox £2,200.71 £2,387.10 £0 tick
Marmalade £2,452.15 £2,056.86 £600 tick
Admiral £3,267.12 £3,546.70 £0
Diamond £3,299.07 £3,583.98 £0
elephant £3,332.36 £3,618.60 £0

(Quotes correct as of 02/11/22) 

How much does new driver insurance cost?

Car insurance for new drivers can be expensive because statistically, drivers under the age of 25 are more likely to be involved in collisions on UK roads. According to research compiled by Compare the Market in September 2022, the average annual quote for 51% of new drivers aged between 17-24 is £1,277. How much you actually pay for your car insurance premium will vary however depending on a number of factors including your age, where you live and the car you drive.

One way to reduce the cost of a car insurance policy for new drivers is with a telematics insurance policy, examples of which are shown in the comparison tables above. Telematics insurance usually requires the installation of a 'black box' which records your driving and rewards safe driving with cheaper insurance, however price adjustments are often only made when it comes to renewing your policy. It is also worth noting that some black box car insurance policies come with driving restrictions and curfews as to the times that the car can be driven without, otherwise they will incur a penalty.

As you gain experience on the road you are likely to see a reduction in the cost of your car insurance premium. In the following table, we show data collected by the comparison site MoneySuperMarket that shows how the average cost of an annual fully comprehensive car insurance policy can reduce with more driving experience.

Driving experience (years)  Average annual premium 
0 £1,718
1 £1,421
2 £1,079
3 £935
4 £850
5 £752
10 £573

(Source: MoneySuperMarket - based on data collected between January and March 2022) 

How to save money on car insurance

Despite new driver car insurance being more expensive, there are some things that you can do to try and reduce the cost of your annual premium. We list some ways to reduce the cost of new driver insurance below but for more information, read our article 'How to save money on car insurance'.

  • Build your no claims discount (NCD) - some insurers offer a discount for no claims. As you gain experience driving, you can build up a discount over time based on the fact that you have not made a claim.
  • Add a named driver - adding a more experienced driver to your policy can save you money, however, you need to be careful not to be 'fronting' the policy. Fronting is when a more experienced driver is listed as the main driver on a policy to reduce the cost but in actual fact, the inexperienced driver is doing most of the driving in that car. Fronting is illegal and you can be prosecuted for fraud.
  • Drive fewer miles - If you insure your vehicle for fewer miles this can save you money on your car insurance policy, but you need to ensure that you declare the actual mileage you drive, as being dishonest can invalidate your policy.
  • Get telematics insurance - Telematics insurance, also known as 'black box' insurance can track your driving and reward you for safer driving with reduced car insurance premiums. Telematics insurance is a popular choice for younger drivers, particularly in the first 12 months of passing their test.
  • Increase the policy excess - Increasing the policy excess can reduce the cost of your annual premium, but remember that this is the amount payable in the event of a claim so ensure it is affordable.
  • Pay your insurance policy annually - Paying your car insurance policy annually can be cheaper than a monthly premium, this is because some insurers add a credit charge to policies that are paid monthly.
  • Take a driving course - Taking an enhanced driving course or qualification can be seen as a positive by insurers and they may deem you less of an insurance risk. As a result, you may see a reduction in your car insurance premium.
  • Drive a less powerful vehicle - Cars are placed into insurance groups which help to determine the cost of the policy. Choosing a car in a lower insurance group can help to save money on your car insurance premium. Find out more in our article 'Cheapest cars to insure in the UK in 2022'.

How to buy car insurance if you’re a new driver

If you're looking to purchase car insurance for the first time, read our complete guide on how to get car insurance for tips on buying the best policy for you. However, one of the easiest ways to get car insurance is by using a comparison site such as Quotezone*. A comparison site allows you to compare multiple car insurance policies at once to find the best and cheapest policy for your circumstances. We have partnered with Quotezone* so that you can search and compare quotes from over 110 UK car insurance providers. It is worth considering though that not all comparison sites are whole of market which means that in some instances you may not always be getting the best deal.

 

 

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