If you’re aged between 18 and 20, you can expect to pay around £1,000 per year on average. For those aged 21 to 25, the average drops to about £650. These are just averages, though — the exact amount you’ll pay depends on several factors, such as where you live, the car you drive, and how many years of no claims discount you have.
To help you understand why costs are high for new drivers — and how you can bring those costs down — we’ve put together this simple guide.
Why is car insurance for new drivers so expensive?
Insurance companies base their prices on risk. New drivers, who have just passed their test and are still getting used to the road, are more likely to be involved in accidents. Because of that, insurers see them as a higher risk and charge more for cover.
For example, according to the Association of British Insurers (ABI), the average premium for 18–20-year-olds is £972, and that’s based on the latest data.
How your age affects insurance costs
| Age Group | Avg. Premium | Avg. 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 | £2,255 |
| 71-75 | £255 | £2,572 |
| 76-80 | £291 | £2,572 |
| 81-85 | £352 | £2,886 |
| 86-90 | £415 | £3,690 |
| 91+ | £478 | £3,656 |
5 ways to reduce your car insurance as a new driver
1. Choose a higher voluntary excess
Your excess is the amount you agree to pay towards any claim. The higher you set it, the lower your annual premium may be. for example, choosing a £300 excess instead of £100 could save you money — but make sure you can afford that amount if you need to claim.
2. Consider black box insurance
Black box (or telematics) insurance tracks how you drive. If you drive safely, the insurer may reward you with a lower premium — either on renewal or sometimes sooner. It’s especially useful for new drivers looking to build a positive record.
3. Add an experienced named driver
Including a parent or older driver on your policy (as long as they really will drive the car) can reduce costs. That’s because insurers see shared use with a more experienced driver as less risky.
Important: Don’t add someone as the main driver if they won’t actually be driving the car most of the time. That’s called fronting, and it’s illegal.
4. Drive a car in a lower insurance group
Faster, more powerful cars cost more to insure. A smaller, slower car is cheaper to run and cheaper to cover. Look for cars in lower insurance groups if you want to keep your premium down.
5. Park in a secure location
Where you keep your car overnight matters. Parking on a driveway or in a garage is usually seen as safer and can reduce your premium. Cars with security features like alarms or immobilisers may also cost less to insure.
Should you be added to your parent’s policy?
It might seem like a good idea to be a named driver on a parent’s insurance policy. It can be cheaper — but there are two key things to remember:
- It can raise their premium. Adding a new driver to a parent’s policy may make their costs go up, even if yours go down.
- Fronting is fraud. You mustn’t list your parent as the main driver if you’re the one using the car most of the time. This is illegal and could make your insurance invalid.
Final tips
- Want short-term cover while learning? Consider temporary learner driver insurance — useful if you’re practising in someone else’s car.
- Keep building your no claims discount. The longer you drive without an accident or claim, the lower your future insurance can be.
Car insurance for new drivers is expensive, but there are ways to manage the cost. The key is to drive safely, choose the right car, and be smart about your policy options.
