How To Purchase Your First Car Insurance Policy

Last Updated: 10/04/2021

If you’ve just passed your driving test or are aged between 17-25 then your car insurance is going to be eye-wateringly expensive.

Sadly, this is a fact of life but there are things you can do to push that cost down.

Car insurance companies insure drivers based on risk.

New drivers are seen as presenting a high risk and so premiums cost much more than that of older or more experienced drivers.

Consumer website moneysupermarket.com found that in the early part of 2019 the average insurance premium for a young driver was £979.

Added on top of the other costs of learning to drive, namely the lessons and test themselves, purchasing a car, car tax and other maintenance fees, it makes driving a very expensive and daunting outlay for new drivers.

However, there is no alternative as it’s illegal in the UK to drive without suitable insurance.

What you can do instead is reduce the risk that the insurance company sees in insuring you and in turn cut down the cost of those premiums.

What You Will Learn

So, with that in mind, how do you go about cutting those expensive premiums down to something at least a little more affordable for new drivers?

Well, this guide is going to take you through how to achieve that step-by-step.

We will explain why new drivers are seen as such high-risk by insurers and give you some ideas of ways in which you can give yourself a chance of saving some money.

As ever, our guide is split in to the following areas:

  • Step-By-Step Guide
  • Video Demonstration
  • Hints & Tips
  • Final Thoughts
  • Further Resources

Step-By-Step Guide

Consider ‘Black Box’ Insurance Policies:

Young drivers and new drivers are hit with high premiums because of their lack of experience and reputation for pushing speed limits.

Young drivers are also given a bad reputation for road accidents due to pushing speeds around corners and essentially trying to show-off a little.

Therefore a fairly new initiative has been introduced by insurers to monitor drivers specifically and to insure against their own driving style, the aim being that it not only leads to more responsible and safer driving by new drivers but it also helps cut insurance costs if their style of driving is good and safe.

The ‘black box’ is fitted to the car and is about the size of a smart phone.

It monitors speed, cornering and braking to analyse how the car is being driven.

All being well, some young drivers can save around £150 on insurance a year with a black box.

Reduce Your Risk Factor:

Driving safely with a black box is one way to cut your premiums but there are other more conventional ways as well.

One is to simply drive less.

Reduce the mileage that you drive and reflect this when submitting your enquiry for an insurance quote – because if you’re on the road less then the risk is less as well in the insurers eyes.

Add A Low-Risk Second Driver:

Consider adding a parent or older sibling with more driving experience to your insurance premium as a second driver.

Because they split the usage of the car, it lessens the risk and ask reduces the premium, however, make sure they are still the second driver.

If you add them as a main driver to further decrease insurance costs while they are in reality a second driver, then you’re breaking the law.

Choose A Low Insurance Category Vehicle:

As we mention in our ‘new driver car buying guide’, when purchasing a car do your research in to insurance costs and find one in the lowest possible category.

Vehicle Security:

Another risk that insurers assess is the security of the vehicle i.e. how likely it is to be vandalised or stolen.

There are ways you can show the insurer that security is taken seriously.

Parking the car in a secure garage or off the road in a secure driveway will help but if those options aren’t available then adding things such as immobilisers and alarms to your car can help reduce your premium down.

Further Driver Training:

Another angle you could explore to try and drive those insurance premiums down further is to undertake further driver training.

PassPlus is a great option for this and recognised by most insurers as adding experience to the driver, not to mention additional driving skills.

It may help reduce your insurance premium a little bit further.

Add A Voluntary Excess:

You can knock a small amount off your insurance premium as a new driver by adding a voluntary excess.

This is an amount that you will pay should you need to make a claim.

For example, if you are in an accident and make a claim for a £1,000 repair, if you’ve added a voluntary excess to your policy of say £250 then you would pay the first £250 of that insurance claim, leaving the insurer to pay £750.

Video Demonstration

Hints & Tips

Your car insurance is going to be a considerable cost for the first few years after you pass your test, so you should factor it in to the budget when buying a car.

It is vital that you assess insurance affordability in the same way you would the upkeep of a car.

Using the steps noted above will help take some of the cost off your insurance premiums.

Also, each year that you drive, make sure you keep a record of your no claims bonus.

This can also drive down insurance costs in future years.

Final Thoughts

There is no silver bullet to getting cheap car insurance as a new driver, just ways in which you can try to bring the cost down to the most affordable level.

Then it’s a case of grinning and bearing it for a few years until it comes down naturally as you gain more driving experience and reduce your risk factor, while all the time staying aware of any circumstances which may enable you to knock a little bit more off your next premium.

Further Resources