What is Young Driver Insurance and Why Can it be so Expensive?

Driving

3 min read

Congrats! You’ve passed your driving test and finally have the freedom of your own car. But whether you’re ready to hit the road solo or go on a road trip with your mates, you’ll need a good young driver insurance policy. 

What is Young Driver Insurance? 

Young driver insurance is a type of insurance policy aimed at younger drivers, usually aged between 17 and 25. It helps protect you financially if you’re in an accident on the road and need medical cover, repairs, or legal help. 

Unfortunately, young driver premiums tend to be much higher than those for more experienced drivers. This is because the price of an insurance premium is partly established by a risk assessment, and statistically young and inexperienced drivers are more likely to be involved in an accident. 

But is there a way to reduce the cost of a young driver policy? Let’s find out. 

Why is Young Driver Insurance so Expensive? 

As mentioned above, a risk assessment tends to increase the price of a young driver insurance policy. But there are other factors as well. 

Lack of Driving Experience 

Insurers view inexperienced drivers as a higher risk because, statistically, they’re more likely to have an accident and therefore make a claim. 

More Likely to Claim 

A significant proportion of new drivers are involved in serious accidents early on. This drives up premiums to mitigate insurer risk against expensive claims. 

Riskier Driving Times

Young drivers tend to drive more often at night or the weekend which can be linked to more accidents. 

The Cost of Repairs 

Cars driven by younger people are sometimes modified, which can increase repair and replacement costs. 

Telematics: How it Works 

You’ve probably heard of telematics, commonly referred to as black box insurance. It’s been one of the biggest developments in young driver insurance in recent years.  

A small device is fitted to your car, or an app is installed on your phone, to monitor how you drive. It measures things like: 

• How quick you drive 
• Acceleration and braking 
• Cornering 
• The time of day you drive 
• Mileage covered 

This helps insurers build up a profile of your driving, allowing them to provide lower premiums to drivers who display safe driving habits. 

The Pros and Cons of Telematics 

There are several benefits associated with black box insurance, including: 

• Substantial savings if you drive carefully 
• Safer driving habits 
• Useful feedback about your driving style 

However, as with any product, there are important things to consider as well: 

• Driving late at night or over the weekend may increase your risk score 
• Poor driving behaviour could lead to higher premiums 
• It monitors the driving regardless of who is driving i.e. if a parent uses the car, their driving will be scored  

In short, if you’re confident in your ability to drive safely, telematics can be one of the best ways to reduce your young driver insurance premium. 

How to Find the Right Young Driver Insurance 

When looking for cover, it’s important to balance affordability with the level of protection you need. Here are some practical ways that can help to reduce costs without cutting corners: 

• Choose the right car: Cars in lower insurance groups (which are usually smaller, less powerful models) tend to be cheaper to insure. 
• Consider a black box policy: As mentioned, telematics can help you save money if you’re willing to have your driving monitored. 
• Add an experienced named driver: Adding a parent or older relative as a named driver can sometimes reduce costs, especially if they’ve been driving safely for years  
• Pay annually if you can: Monthly payments may be more convenient, but they often come with added interest. Paying in one go is usually cheaper overall. 
• Increase your voluntary excess: If you’re willing to pay a higher excess in the event of a claim, you may get a lower premium. Just make sure it’s an amount you can realistically afford. You can also purchase excess protect policies which will cover some of the excess in the event of a claim. 
• Build a no-claims discount: For every year of claim-free driving in your own name you will earn an inbuilt discount which may bring down your premium.  
• Improve vehicle security: While this may not be possible for all young drivers, parking in a garage or installing an immobiliser can sometimes make your car cheaper to insure. 

Explore ChilliDrive by AbbeyAutoline 

ChilliDrive is our dedicated insurance product for young drivers, providing tailored car insurance while promoting safe driving. 

Alternatively, you can speak to a member of our team on 08000 66 55 44.