How to reduce new-driver car insurance costs?

This puts new motorists in a difficult position when learning to drive as they are often the ones with the least financial support behind them – unless they have the bank of mum and dad to rely on.

To help we have compiled this guide which explains why newer drivers face higher insurance costs and offers ways for new drivers to try and reduce their car insurance costs.

Why is car insurance for new drivers expensive?

Insurance works by calculating the possibility of risk – therefore, new and newly qualified drivers are simply a bigger risk.

There is the higher probability of a relatively inexperienced driver being involved in an accident, so it’s no surprise that the average premium (the amount of money you actually pay to an insurance company for coverage) of drivers aged between 18 and 20 years is £972, according to data from the Association of British Insurers (ABI).

However, it is possible to find ways of reducing the cost of insurance of new drivers.

Why is car insurance for new drivers expensive?

How does age affect the cost of car insurance?

Data from the ABI in 2015 shows why age is such a key factor in setting premiums for motor insurance policies – the table below details average premium by age bracket of policyholder and also average claim.

Age of policyholder Average premium Average claim
18-20 £972 £3,667
21-25 £649 £2,905
26-30 £502 £2,520
31-35 £426 £2,274
36-40 £378 £2,279
41-45 £343 £2,199
46-50 £326 £2,265
51-55 £306 £2,233
56-60 £277 £2,216
61-65 £252 £2,180
66-70 £241 £2,225
71-75 £255 £2,495
76-80 £291 £2,572
81-85 £352 £2,886
86-90 £415 £3,690
91+ £478 £3,656

Five ways to lower your car insurance

The fact is car insurance prices for new drivers are expensive and until you become a more experienced motorist you won’t really benefit from a significantly cheaper premium.

However, following these tips will go some way towards bringing the cost down, and while might not see a huge decrease in price it will certainly give you the best chance of benefiting from the highest policy reductions possible.

1. Pay a higher excess

When you are getting a quote for car insurance, you will be asked to decide a level of excess – this is the voluntary amount you are happy to pay towards repairs in the event of a claim.

If you set it at £50, your overall premium will be higher than if you have a voluntary excess of £200. Just make sure you can afford to pay out £200 if you need to.

2. Take out Black Box Car Insurance

Black Box Car Insurance is definitely one tip of how to get cheaper car insurance for new drivers.

What is Black Box Insurance?

It’s a way of helping young and new drivers to save money on their car insurance by rewarding safe and responsible driving.

The black box is installed in the car and used to monitor driver behaviour – quite simply, the safer you drive the cheaper your car insurance could be at renewal time.

It might not make your first car insurance policy cheaper but could apply a discount second time around.

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