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Insurance Information

Car insurance options for new/young drivers

To be able to drive a car legally in the UK you must be at least 17 years of age and hold a provisional or full driving licence.  It is also a requirement that all learner drivers must display ‘L’ plates (‘D’ plates can be used in Wales) on the front and rear of the car under their control, and they must be accompanied by an adult of at least 21 years of age and has held a full licence for at least three years.  The vehicle being driven must also be roadworthy (a current MOT certificate), taxed and insured.

What is new driver car insurance?

Car insurance for a new driver works in much the same way as traditional car insurance except that there are some options and features designed for those who are less experienced on the road.

Many new drivers will opt to take out third party or third party fire and theft cover in order to avoid the extra cost of comprehensive policies.  This can be a sound choice particularly if the vehicle being insured is only a few hundred pounds in value. 

Premiums for young drivers can be quite high because of the higher accident rate in the 17-24 age group.  For a young male driver the average insurance policy costs £4500 – which is astonishingly high.  Insurers will then pass this on through higher premiums, higher excesses and in the case of some insurers refusing to offer cover for young drivers altogether.

This is when new driver’s car insurance can become a particularly effective option. It is designed to represent the needs of young drivers while at the same time presenting a cost-effective solution.  Some of the insurers on the UK market who provide this type of policy are:

  • AA

Offer a discount of up to 35% for drivers who pass the Pass Plus course.

  • Endsleigh

Provide insurance for provisional licence holders as well as a 20% Pass Plus discount.  They are also the recommended insurer of the National Union of Students (NUS).

  • 17-24 Car Insurance

Have a policy for both provisional and first time drivers, also offer a Pass Plus discount of 20%.

  • Norwich Union

Offer a bonus scheme in which drivers between the ages 17-29 can earn a full year’s no-claims bonus in just nine months.

  • Collingwood Learner Driver Insurance

Offer specialist policies for learners, such as short term cover which can be arranged for as short a time as a week.

Aside from discounts offered for passing the Pass Plus course or schemes that allow you to build a no-claims bonus more quickly there are a number of other things you can do to further reduce your premium including paying for your insurance annually rather than monthly, increasing your car’s security with an alarm or tracker, or increasing your voluntary excess amount.

Common car insurance terms

When shopping around for car insurance you may come across some terms which you may not have heard before so it’s helpful to know what some of them mean such as:

  • Annual mileage

This is the expected maximum mileage that will be travelled in the vehicle during the policy duration.  Agreeing to a maximum mileage could earn a discount but always be honest with your insurer about this.

  • Certificate of insurance

Your official insurance document, this will outline the type and duration of your policy.

  • Third party only (TPO)

The minimum level of cover required by UK law, this will provide cover for injuries to others and any damage to their property.

  • Third party fire and theft (TPFT)

This provides the same cover of third party only insurance but also provides cover for fire damage or theft.

  • Comprehensive cover

Generally provides the largest amount of cover and options, among the common extras offered with this are accidental damage cover, and personal possessions cover.

  • Premium

The amount you pay monthly or annually for the policy

  • No-claims bonus

A discount earned by not making a car insurance claim during the policy period.

  • SDP

Standing for ‘social, domestic, and pleasure’ this is cover for typical use of a car.  If the car is also going to be used for travel to and from work, look for ‘SDP and commuting’ cover.

Remember that the key to keeping your new driver car insurance as low as possible is to drive in a safe manner, avoid driving recklessly, never drive under the influence, and be courteous to the drivers around you.