Did you just pass your test? Congratulations!
Just got your license? Double congratulations!
Now, before you venture out on the open road in your favourite car, there’s one more thing you must do: car insurance.
Historically, car insurance for young drivers aged between 17 and 24 has been expensive, although some insurers offer reasonably priced premiums by providing plans that are specific to young drivers.
If you’re not sure where to start with car insurance as a young driver, then this article is really worth reading.
Types of insurance available to young drivers
All UK drivers are required to have car insurance by law. At the very least, they must have third party cover, although this may turn out to be a more expensive option than comprehensive cover, for instance.
Either way, young drivers get the same coverage as regular drivers, which include:
Third-party only (TPO) cover
This is what we’d call the most basic car insurance level. It covers you in case of injury to another person and damage to someone else’s vehicle or property.
While this plan covers physical damage, injuries and medical expenses for other parties, it does not provide you with any coverage, in case you have to pay.
TPFT – Third party, fire and theft cover
This kind of insurance essentially provides the same cover as TPO, with fire damage and car theft included.
So, it’s one step up from TPO, providing you cover in case of damage due to fire, theft or attempted theft. With that said, damage resulting from an accident where it was your fault, is not covered under this plan.
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Comprehensive cover
As the name suggests, this covers you for all of the above, plus the cost of repairs to your car and medical expenses if you get injured.
This is the highest level of car insurance a young driver can buy so it literally covers everything – both for you and the other party involved – no matter whose fault it is. You’re also covered for damages against fire, theft, and vandalism.
Are there specific types of insurance policy young drivers can buy
The above are the three basic categories of insurance, just so that you have a gist of how things work.
If we go deeper into it, there are specific kinds of policies insurance providers offer young drivers. It’s important to consider each of these carefully, as it can help you save money.
Black box insurance
In this kind of policy, your provider will track how well (or how badly) you’re driving by installing a tracking device on your vehicle. Don’t worry, it won’t be visible, beep loudly, or anything like that! It’s concealed typically somewhere in the engine bay or under the steering wheel compartment where no one can guess that it’s even there.
This serves multiple purposes – e.g. it lets insurance providers track, record, and analyse various driving data. If you’re a ‘safe’ driver according to the collected data, you could save a few pounds on your renewal!
0330 174 8540 for a no obligation discussion
WhatsApp on 07535 812 049
Learner driver insurance
This type of policy is applicable if you have a valid provisional UK driving licence. It offers flexible short-term insurance while you learn to drive and practice outside of the regular driving lessons.
This is great if you want to drive out on public roads with your instructor riding shotgun to keep things rolling smoothly (pun intended).
Named driver insurance
By adding a parent/guardian to your policy as a ‘named driver’, you could potentially lower your premium.
However, you must be 100% honest about who the car’s main or primary driver is – if you’re found to be driving someone else’s car or doing what’s called ‘fronting’ (driving a car that’s not primarily driven by you), your insurance policy may be cancelled.
PAYG insurance
Perhaps you’re an infrequent driver, in which case, it makes sense to buy a ‘pay-as-you-go’ insurance policy. Rather than pay a fixed annual premium, you pay a fixed rate each month or year, after which you are charged on a per mile basis.
It’s a pretty cost-effective option if you’re a low mileage driver.
Call us now on 0330 174 8540 for a no obligation discussion
WhatsApp on 07535 812 049
Short-term car insurance
A short-term car insurance policy will cover you for a fixed duration – as low as 1 hour and up to 28 days. However, you won’t be able to legally drive outside of the period you have specified.
This kind of temporary car insurance may prove useful if you want to, say, borrow a friend’s car for a while or test drive a new set of wheels!
What is the cost of insurance for young drivers in the UK?
Good question!
For comprehensive car insurance, for example, the average cost to drivers between 17 and 24 is £715 per year.
For TPO insurance, it’s £682 per year, and for TPFT insurance, it is £756 a year.
Bear in mind that these are average rates, as the actual price may greatly vary from provider to provider, and also depends on the vehicle you are driving.
Plus, other factors can influence the price of your insurance premiums, such as:
- Your driving history
- Your occupation
- Whether your car has any modifications on it
- How frequently you drive
- Your place of residence
- Where you park your car at night
- The type of car you drive (utility van vs. sports sedan, for example)
- Your age
Ultimately, you would be wise to shop around and compare different plans to see which one offers the most value according to your own unique circumstances.
Why do young drivers have to pay more for insurance?
Insurance providers tend to charge young drivers higher based on the perceived risk on the road, as young drivers tend to find themselves more often in ‘hairy’ situations than older, more experienced drivers.
So, based on your age, driving experience, and current accident statistics in the UK among young drivers, most insurance providers will charge you higher than what they charge regular drivers.
Not sure where to start hunting for insurance? Liber Financial can offer expert advice along with fantastic financial deals on your favourite luxury or prestige vehicle: 0330 174 8540.
We’re here to help
Liber Financial can help you determine eligibility and make the entire process really easy for you.
Call us now to explore a variety of car financing options: 0330 174 8540
WhatsApp on 07535 812 049
