We've reviewed independent expert sources to come up with candidates for the accolade Best Young Drivers Insurance 2020.
Top 3 Car Insurance Companies for Young Drivers
Rest of the Best
How we came up with our Top Young Driver Car Insurance List
The cost of car insurance for young drivers can vary enormously because it is based on factors such as the age and driving experience of the young driver, the model and insurance group of the car being insured, and your postcode.
We looked at ratings from different independent financial service review firms. We considered their ratings on the comprehensiveness of cover provided by the policies offered to young drivers.
We only considered insurance companies that have policies or tools specifically aimed at young or new drivers.
Comparison sites like Gocompare.com allow you to check prices from different insurance companies, based on these factors. Because it's easy to check prices on these sites, we've decided to focus on the quality of the insurance to create our list of the best young driver insurance.
Cheap insurance for young drivers
According to Confused.com, car insurance prices for young people are cheaper than they were a year ago. It says that in the forth quarter of 2018 17-year-olds were paying an average of £1,855, which is £98 less than prices in the same period last year.
It says 18-year-olds were paying £1,983 on average.
It looks like Confused.com uses data from comprehensive car insurance policy quotes, which can be expensive.
There may be cheaper policies but young drivers are still likely to find their premiums are well in excess of £1,000, which will be more than the price of many people's first car. Find out more with our guide to how much UK car insurance costs.
Insurance companies base their pricing on average data for age groups and young people tend to claim more. Black box policies can be cheaper for young people because the information the box records can prove the driver is safer than insurer's data would have them believe (as long as you actually drive safely!).
However, young people may find it difficult to find what they consider to be cheap car insurance so it's important to have the right expectations when shopping around for cover.
The model of car will also affect your price. Car insurance companies use groups to help set premium prices for particular makes and models. Lower car insurance groups, such as Group 1 or Group 6 tend to cover cars that are cheaper to buy and insure.
One interesting development is the launch of Marmalade's Cars for Young Drivers scheme. This offers young drivers (17 years old and up) free car insurance for 12 months when buying a new car on finance. Prices start from around £171.36 a month, with around £500 of deposit payable up front, and cars from popular manufacturers like Fiat, Ford, Vauxhall, Kia, and Peugeot are available.
Tips for young and new drivers on how to get the cheapest insurance
- You could buy your insurance with as high an excess as your insurer will allow, and then separately insure this excess. The likelihood is that this will reduce your premium. Be aware that you will be paying a separate premium for the excess cover and you'll only be able to make a claim on the excess cover if the issues cost more than the amount you have insured. Learn more about how it works.
- Build your No Claims Discount - some insurers will allow you to do this without having a policy in your own name so you may be able to build it while driving on a parent's policy (for example, The AA), while others will let you carry forward your learner driver track record into a full driver policy (for example, Provisional Marmalade).
- Choose a car from the cheapest car insurance group, Group 1. Cars in this group shouldn't cost too much and they'll have some of the cheapest insurance premiums.
- Get more tips and advice about how to get a better deal when you renew your car insurance after your first year of cover.
- Shop around, use comparison sites, black box providers and check specialist new driver policies like Marmalade's.
Companies that offer black box car insurance for young drivers
The black box (also known as "telematics") enables insurers to track driving style and enables them to predict which drivers are more or less likely to have accidents.
Black box insurance policies typically re-assess the price of insurance based on the data from the black box - either monthly, quarterly, or annually. Generally, driving shorter distances, at lower speeds, during the day (as opposed to at night), with controlled acceleration and cornering results in lower insurance premiums over time.
Learn more about black box car insurance.
The companies in our top young drivers' insurance list who offer black box insurance are:
- Direct Line (Drive Plus)
- Churchill Car Insurance (DriveSure)
- Co op Young Driver Insurance
- Bell Insurance (Plug and Drive)
- Admiral - LittleBox
- Hastings Direct (Smart Miles)
- Coverbox - Car Insurance
Learn more out about the best black box providers and read reviews.
How can you compare Young Drivers Car Insurance?
As in most markets where prices are high, competition has entered.
On these sites you enter your details once and in return you’ll receive quotes from a number of insurers who are, in effect, competing for your business.
However, there are some limitations with comparison sites for Young Drivers. Be aware that simply picking the company at the top of the list (ie the cheapest) might not actually get you the cheapest or most appropriate cover.
Why price comparison sites are not always best for young drivers
- Many insurers are not listed on price comparison websites, including Direct Line and Aviva.
- Some policies are tailored to specific groups of younger drivers and may provide more relevant or tailored cover to these groups - for example, Endsleigh has insurance cover designed specifically for students.
- To reduce the cost of their policies many insurers have stripped back what is included. So be sure you know that what you’re buying is what you need. For example, watch out for policies that only cover limited mileage (a 3,000 mileage policy for drivers may not work for those who have a 25 mile daily round trip to work or college). Some don’t cover windscreen damage (typically £35 - £75 to repair a chip, more to replace it). Others strip out legal expenses cover, which pays out if you need to contest an insurance decision.
If you're buying a new car you may be interested in our guide to GAP insurance.
Young Drivers Insurance Reviews
Read our expert, independent reviews of companies such as Marmalade insurance and AvivaPlus to learn more about Young Driver insurance:
- Marmalade Car Insurance Review
- AvivaPlus Car Insurance Review
- Admiral Car Insurance Review
- Hastings Direct Car Insurance Review
- Bell Car Insurance Review
- 1st Central Car Insurance Review
- Carrot Insurance Review
- Endsleigh Car Insurance Review
- Churchill Car Insurance Review
- Ingenie Insurance Review
- Drive Smart Insurance Review
- Wise Driving Insurance Review
- MyPolicy Insurance Review