Cheap car insurance for new drivers: expert’s tip on how under-25s can save £368 a year

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Industry insider reveals single method that can slash hundreds from premiums as policy costs increase

Young drivers are facing rising motoring bills as car insurance costs begin to climb.

The latest data from the Association of British Insurers shows that average car insurance premium has increased by 1.3% in the second quarter of the year. The average cost of a policy is now £419.

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The cost for younger drivers is far higher, however, with motorists aged between 17 and 24 typically facing bills of more than £1,000 per year.

Added to the high cost of fuel, rising car tax and the general increased cost of living, it is leaving younger drivers facing huge bills just to stay mobile and looking for ways to cut their costs.

Motoring costs including insurance, tax and fuel have all risen this yearMotoring costs including insurance, tax and fuel have all risen this year
Motoring costs including insurance, tax and fuel have all risen this year | Shutterstock

According to figures from Compare the Market, which are based on quotes rather than ABI’s method of using actual policies, the average 17-24-year-old pays £1,489 a year to insure their car, more than three times the national average.

However, the comparison site’s motor insurance expert Julie Daniels, has revealed that drivers could save more than £350 by simply adding another driver.

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According to the site’s data, young motorists who include another named driver on their policy save an average of £368 compared to those who are the only driver. That brings the average premium down to £1,121.

Julie said: "The cost-of-living crisis and soaring fuel costs mean that many people are struggling to stay on the road. For young drivers, the cost of insurance can also be prohibitively expensive. Adding an experienced named driver to your policy is a legitimate way to bring the cost down as long as they also drive the car. Our figures show that young drivers could save more than £350 on car insurance if they add a parent or other experienced driver to their policy.”

The method doesn’t work if you add an equally young or inexperienced driver but adding a more experienced driver such as a parent can help. However, it is important that families are honest about who will actually drive the car or risk committing insurance fraud known as fronting, which can have serious consequences for both drivers.

Fronting involves naming an older more experienced motorist as the main driver on a policy when, in fact, the less experienced person will do most of the driving.

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If a young driver is caught fronting, their policy could become invalid, and they could face criminal prosecution.

Julie added: ”It is essential that all information provided to your insurer is accurate. Young drivers should take care to avoid fronting as they could land their parents with a criminal record, unlimited fine, and six penalty points.”

While young drivers will always face higher insurance bills there are also other tricks to bring down insurance costs, which you can read all about in our guide here.

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