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Car insurance old car young driver

Starting to drive is an exciting moment for teens, but for their parents, it can be stressful and it will certainly be expensive. The good news is that you can check quotes from different insurance companies and minimize the damage to your wallet. Let us guide you through buying car insurance for young drivers to help you save money.

Find out about…
• Policies
• Rates
• Discounts
• Cars
• Insurance for College Students

Policies

Before your teen starts driving, you should know:

  • All drivers in a household need to be added to a car insurance policy. There is no easy or cheap way to get around car insurance for a new driver. Either you need to add your teen to your policy, or the teen needs his own policy.
  • Sharing a joint policy with a teen is cheaper than paying for separate policies. Additionally, there is no benefit to a teen getting his own policy. This doesn't mean, however, that you should simply add your teen to your current policy and be done with it. Adding a new driver means your company generates your rates all over again, and a different company may give you a better deal. Shop around by getting quotes from several companies.

Do I have to add my teen once he has a learner’s permit?

The process of insuring a new driver typically starts when the teen gets a learner's permit. Once teens get a learner's permit (aka provisional license or instruction permit in some states), some companies allow you to add them to your policy at no additional charge until they get their licenses or turn 18. They allow this because state permit-holder laws require a licensed driver age 21 or older in the passenger seat, making the young driver less of a risk. Other auto insurance providers require that teens be added when they are in the permit stage, so check with your provider.

Do I have to add my teen to my policy if he doesn’t own a car?

Yes. It doesn’t matter that he doesn’t have his own car; he has access to yours. If you don’t add him to your policy and he is in an accident, your policy may not cover him. Some car insurance companies explicitly note in their policies that unless you notify them of additional drivers or risks, those individuals will not be covered. If they do cover the accident, the insurer may require you to pay back premiums from the time the teen was licensed.

If your teen is getting a license but isn’t going to drive your cars -- ever -- then in some states, some insurers will let you exclude the teen from your policy. If you do exclude a teen, or anyone, from your policy, there will be no car insurance coverage extended if they are in an accident. Many insurance companies want you to tell them about household residents who are over a certain age (usually 15) whether that person is licensed or not.

Do I have to tell my insurance company about my teen if he isn’t licensed?

Yes, you usually do. When you renew your policy, you are usually asked for information on everyone in your household. If your child hasn’t received a permit or license yet, the teen usually can be listed as unlicensed on your policy. When a young driver is noted as unlicensed, he also should be unrated by the car insurance company, meaning the teen wouldn't affect your rates.

Who should insure a teen if the parents are divorced?

In general, the custodial parent’s policy is primary for the newly licensed driver. However, if the child will drive when staying at the second home, both parents typically need to list the teen as a driver. Car insurance companies deal with this situation differently, so check with your company and ask what your new rates will be. This way you’ll know what to shoot for if you decide to shop around for a better deal.

How can a teen get his own policy?

A teen driver can get a car insurance policy of his own, but if he’s under 18, a parent or guardian signature is required on the policy since insurance is a legal contract. Even if you are willing to sign on the policy with a young driver, keep in mind that it’s cheaper if the teen is added to your policy instead. Read our age-specific guides for teen drivers to see how rates differ depending on whether the teen is on his own policy or the parent;s:

  • 16-year-old
  • 17-year-old
  • 18-year-old
  • 19-year-old

Rates


How much does car insurance for new drivers cost?

Our analysis of the cost of adding a teen driver showed an average increase of 160% when a married couple added a teenage boy to their car insurance policy. This number can only be used to give you a very general sense of how much your rates will increase. Every situation is different, and rates depend on your insurance provider, coverage options, ZIP code, vehicles, driving records, how much you drive and many more factors.

Why is car insurance for young drivers so expensive?

Teens are inexperienced behind the wheel and immature by nature. That's a bad combination. A brand-new driver is 12 times more likely to have an accident than someone with a year of experience, says the National Institutes of Health. A 16-year-old who’s had one accident is 50 percent more likely to have another, says the National Highway Transportation Safety Administration. In addition, maturity levels change quickly. Teens who get their licenses at age 18 have fewer fatal accidents than those who are licensed at age 16. Many insurers no longer lump all young drivers together but instead rate age groups separately.

At what age do young drivers' rates go down?

The age of 25 is typically when insurance companies begin to offer the same rates they do to all other adults. Some carriers will lower rates for women when they turn 21 and men when they turn 24. Once you’re no longer priced as a “young driver,” your insurance provider will rate you based on your driving record rather than those for young drivers in general. In addition to rating drivers based on age, insurers can also levy a surcharge for inexperience, usually for those who have been licensed less than a year. To get a better sense of how insurance rates change by age, see average insurance rates by age.

Discounts


Good student discount

Encourage your kid to do well in school because student car insurance discounts can help bring down your rates. Each insurer has its own guidelines, but typically the discount can be 10 percent to 15 percent. Each insurer always has its own rule for what constitutes a “good student” – either a 3.0 grade point average or above, placement on dean’s list or honor roll, or ranking in the top 20 percent of the class.

Safe driver discount

Look into discounts for new drivers who take a safe-driver course, sometimes sponsored by the insurance company. This may mean attending an actual classroom driver’s education class, watching a driving video, or passing a written driving safety test. Your company may also offer discounts if the teen drives with devices that monitor driver behavior.

Cars for Teen Drivers

Given the cost of car insurance for your teen, you may want him driving a car this is cheap to buy and cheap to insure. Check out our list of the 20 best used cars for teens.

The least expensive cars to buy aren’t always the least expensive to insure. Some cars cost more to repair after an accident, and some have a record of more injury claims than others do. And the least expensive car to insure may not be the safest. Electronic equipment such as stability control and antilock brakes can help novice drivers avoid accidents, and there can be a discount for having them. The lowest car insurance rates are often given to drivers with minivans and small SUVs.

Insurance for College Students

When a teen moves out to go to college, you’ve got another car insurance decision to make, based on whether the teen owns a car, how far he moves, if he’s going to drive a family car while in town, etc. Read our guide to car insurance for college students to get guidance for your unique case.

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Cheap Young Drivers Car Insurance - Reduce The Costs

Cheap car insurance for young and new drivers is a rarely realised promise. The best any young or new driver can do is find and buy the cheapest insurance premium on offer. What follows is a guide designed to help all new and young drivers reduce the cost of their car insurance.

Firstly, the reason cheap young drivers car insurance is a distant reality is simple - new and young drivers are a bigger risk to insure than the average, more experienced car driver. These are the facts:

  • Newly qualified UK drivers are more likely to have an accident during their first year of year of driving than at any other time.
  • Per mile of driving, the risk of an accident involving injury or death is about seven times greater for 17-20 years old than for those aged 40 or over.
  • Young drivers under 21 are involved in 15% of all car accident deaths.
  • New drivers make up just 10% of licence holders, but are involved in 29% of accidents.

How To Lower Your Car Insurance Costs

The following tips will help make the cost of young drivers car insurance as inexpensive as possible.

Take the Pass Plus Driving Exam

The pass plus examination is for newly qualified car drivers. It is an intensive training course that helps new drivers become better drivers. Pass the pass plus and you will get a discount of up 35% on your car insurance. Taking the Pass Plus will cost around £150 but given the high cost of new drivers car insurance you should save more than this on your car insurance premium. Ask your driving instructor for details.

Pay Higher Excess

Car insurance companies will insist on a minimum amount that you have to contribute to any car insurance claim. The standard amount is £150. If as a young driver you volunteer to pay a higher amount, say £250, your insurance premium will be cheaper.

Pay Your Car Insurance Premium in One Go

It is cheaper to pay your car insurance in one lump sum rather than in monthly installments. Most car insurance companies charge interest of around 15% APR (some up to 30%) to allow you to pay your premium in monthly installments. This significantly increases the premium paid.

Named Drivers

Adding a named older driver to your car insurance policy, i.e. your parents, can save you 10% on your insurance premium. Likewise, avoid having younger named drivers on your policy.

Car Security

Beef up your car security. Thatcham approved car alarms are recognized by all car insurers and most will discount your premium if you have these fitted.

Stick To The Speed Limit

No points on your license means cheaper insurance.

Park Securely

If you have a garage then use it. Your car is less likely to be stolen from your garage or from your drive than if it is parked in the street. Insurance companies will recognize this and offer cheaper car insurance premiums.

Buy Your Car Insurance Policy Online

Buying online is cheaper as the insurance company has fewer costs to cover so most car insurance companies offer a discount if you buy online via their web site.

Be Born Female

Female car insurance is cheaper. This is because of one simple fact; the average female driver is a safer driver than the average male driver. Result, women tend to get cheaper car insurance.

Shop Around

According to the Association of British Insurers it is possible to save 35% on a car insurance premium by simply comparing several insurance companies against each other. As young drivers such a discount can be considerable. So get as many insurance quotes, online or otherwise, as you can. It will save you money.

The easiest way to shop around is to use a price comparison site. In my experience Go Compare have the best and most comprehensive service. For A Young Drivers Car Insurance Quote Click Here.

The Three Main Car Insurance Options Are:

Third Party Car Insurance
The most basic car insurance option. Third party car insurance is the minimum coverage that allows you to drive legally in the UK. Any damage you do to a ‘third party’ i.e. someone or something that is NOT YOU or YOUR CAR is covered. You have no cover for personal injury or damage to your vehicle. So, if you damage your car, or if your car is stolen, with third party car insurance you will have to pay for the repairs or cost of replacing the car.

Third Party Fire and Theft
As well as the most basic level of insurance (above) Third Party Fire and Theft insures your car against fire and theft. This option is the most popular car insurance for new and young drivers.

Fully Comprehensive Car Insurance
Comprehensive insurance gives you full risk cover for your car. This means that you can claim for any damage caused to your car by any means, apart from exclusions found in the small print.

In addition to allowing you to claim for the damage caused to your car in an accident, with comprehensive car insurance cover, you can also claim for acts of vandalism, theft, or any other accidental damage to your car which does not involve a crash.

Given that most young drivers want the cheapest car insurance quote they can find, fully comprehensive insurance is rarely an option.

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Young Driver Insurance, also known as black box insurance, monitors driving behaviour to encourage safer driving habits and lower premiums. Young drivers are classified by insurers as aged 17-24, and as new drivers they are often charged higher premiums than their parents. RAC Black Box Car Insurance aims to level the premiums playing field, educate young drivers on best driving practises, and get younger drivers insurance cover that’s more fairly priced.

Cheap Car Insurance for Young Drivers

RAC Black Box Car Insurance uses GPS technology, also known as Telematics, to track the way you drive – analysing the use of acceleration, braking and where and when you drive. It uses the data gathered to provide a statistical analysis presented to you in the form of a driving score, and applies savings at renewal to those who have a good driving score. This means that your premiums are tailored to the way you drive, not just assumptions made on your age range and location. If you keep your good driving up, not only will you have the chance to have your premiums reduced again at renewal, but you could benefit from the long-term savings made on petrol, tyre wear and maintenance.

You can access your driving rating and the advice we give you to improve your score through your own personalised online Insurance Portal or alternatively download our free app.

Why is Car Insurance so expensive for Young Drivers?

If you’re a young driver, unfortunately you could end up paying more for your car insurance. Statistics show that 23% of drivers aged 18-24 will have an accident within their first two years of driving, mainly due to inexperience and lack of road awareness. Not being used to motorway driving, night-time driving, and driving in adverse weather conditions means that premiums for younger drivers are generally higher for those under the age of 25.

Until Black Box Insurance, there was no way for young drivers to prove that they were safe on the road, so insurers had to make general assumptions about their driving behaviour based on these traffic accident statistics rather than their individual driving record.

Can Student Drivers get Black Box Insurance?

Student drivers can also benefit from the advantages of Black Box Insurance. Student drivers living in a city are more likely to claim on their policy or be a victim of crime, and so insurance premiums generally reflect this increased likelihood. Black Box Insurance gives drivers the chance to lower the price of their annual insurance by reducing the reliance on age in the equation – meaning drivers are given a fairer policy with lower premiums.

Get a quote

Driving tips to help lower your Car Insurance premium

Although the age of the driver statistically changes the likelihood of being involved in an accident, the RAC has a number of driving tips, which can help improve driving behaviour and help to lower insurance premiums when using Telematics technology.

Speed and braking

As well as driving within the speed limit, pulling away smoothly from traffic lights and slowing down gradually rather than stopping sharply are also signs of safe driving.

Cornering and bends

Cornering at the appropriate speed, rather than braking hard and taking a bend sharply, shows insurers you are driving safely.

Night driving

Younger drivers are especially at risk when driving at night, particularly over the weekend. So it is recommended that younger drivers gradually build up their experience to increase their confidence and skills when driving in the evening.

Cheap cars for young drivers

Apart from the way you drive, the vehicle you choose can also affect the cost of your car insurance. To stay safe and reduce your insurance premiums, choose a smaller, less powerful car. For example rather than go for a fuel-hungry 2-litre vehicle, choose a 1.1 litre car that will perform much more economically and still get you where you need to be.

Alloy wheels, body kits and performance upgrades can not only make your vehicle more attractive to car thieves, but they can also increase your premiums because of their increased cost to repair. Keep your car as it was when it rolled out of the factory in order to keep your insurance premiums as low as they can be.

Find further information here on Black Box Car Insurance or speak to one of our RAC advisers on 0330 159 1042 to get a quote, or if you haven't yet passed your test then please see our Learner Driver Insurance

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