Best Car Insurance for Young Drivers

Best Car Insurance for Young Drivers

Many factors determine a car insurance rate, and the driver's age is perhaps the most significant. For young drivers, this can lead to extortionate premiums, even for sensible vehicles.

Naturally, young drivers have less experience, so car insurance policies will have less trust in their abilities.

To find the best insurance for young drivers, you must consider the average premiums, discounts for young drivers, accident forgiveness policies, and many other factors.

Here you will find comprehensive information on what young drivers should look for with insurance and the best car insurance policies out there. Let's get started.

Young Drivers Car Insurance: What Is It?

Whether you are looking for car insurance or pet insurance, it's always good to be covered.

Having an active car insurance policy is mandatory by law in the UK and the US. In the UK, all drivers are required to hold at least a third-party level policy. This covers damage to the other vehicle if the policyholder causes an accident.

In the US, the matter is a bit more complicated. Each state has its own minimum car insurance requirements, with five possible types of coverage that may be mandated by law.

All 50 states require property damage liability, and almost all of them demand bodily injury liability insurance as well.

Due to their age and inexperience, young drivers are automatically placed in a higher risk category for being involved in an accident. In addition, young people can often only afford to drive old vehicles with less reliable safety features. For these reasons, insurers foresee that young drivers will be more likely to cause property damage and personal injury.

To avoid high claim payouts without a return on investment, car insurance companies often impose hefty car insurance premiums on young drivers. Quotes for young drivers can be up to three times as expensive as those for an older driver.

Once the driver turns 25, their premiums are drastically lowered, and they become eligible for more benefits. Therefore, finding an affordable car insurance policy for new drivers is quite challenging.

What Should Young Drivers Look For in Car Insurance?

Although the price is often a deciding factor in car insurance, health insurance or any other type, there are other factors to consider when picking a policy for a young driver.

Here are some features that are good to have in car insurance.

Courtesy Cars

Many young drivers still in school or who work an entry-level job rely on their car for transportation.

If this is true for you, the last thing you need is to get into an accident and lose your means of transportation. To avoid this, find a car insurance policy that will provide you with a courtesy car until yours gets repaired or replaced.

If you don't want to rely on your car, there are many great online jobs now available.

Windscreen Cover

The windscreen is one of the most important safety features of your vehicle, and because of this, it should always be in top condition.

Unfortunately, windscreens can easily be damaged, and their repair or replacement is rather expensive.

Choosing a policy that incorporates windscreen cover can help you save those costs.

Lost Key Cover

Losing your car keys can cause a lot of trouble and expense.

If you have a spare set, you may get away with just making another copy but with modern car keys this is costly and sometimes not possible. It's advisable to opt for car insurance that covers the costs of lost keys and lock replacement.

No Binding Curfew

To reduce the chance of claiming, many insurers impose a strict limitation on how many hours a young driver can use their car. If you want the best car insurance for young adults, it's best to avoid this.

Apart from causing inconvenience, this also means that you will have less time to gain the experience you need for becoming a reliable driver.

Policies without a curfew may cost a little more, but they will be worth it in the long run.

Free Black Box Installation

Having a black box in your car can be a great option to prove to your insurer that you are a responsible driver.

However, installing it can be costly, so it's a good idea to find an insurance company that will cover this. Fortunately, many insurers are willing to compromise on this.

Top Insurance Providers for Young Drivers

Now that you know what to look for in car insurance for young drivers, it's time to compare the available options. Below are some of the best insurance companies for young drivers from the US and the UK.

Top Young Driver Car Insurance Providers in the US

1. AAA

AAA is a trusted insurance company providing several benefits for new drivers. Their comprehensive package includes damage caused by theft, vandalism and natural forces. They offer perhaps the best insurance for young adults in the US.

If you have AAA membership, there is also all-inclusive roadside assistance and coverage for damage repairs available. New vehicle owners can even protect the value of their cars. If it's beyond repair, you can claim back what you paid for it, without depreciation.

Visit AAA

2. USAA

While AAA gives great insurance for the best auto insurance for young adults, USAA isn't far behind. Their car insurance policies are one of the most straightforward options for young drivers with relatives who are current or retired members of the US military.

They offer very competitive rates for their comprehensive coverage and discounts on car maintenance, all of which young drivers can benefit from. If other family members are added to the policy, this can earn the policyholder further discounts.

Visit USAA

Best Car Insurance for Young Drivers
Best Car Insurance for Young Drivers

Top 10 Young Driver Car Insurance Providers in the UK

3. Co-op

With its comprehensive coverage, Co-op car insurance provides several benefits that make it one of the best insurance options for young drivers. Roadside assistance, accident recovery, market value payback and a courtesy car are just some of the features on offer.

There is also windscreen repair or replacement cover in case the car is damaged during theft or vandalism. Those who travel frequently will get up to 30 days of insurance cover in the European Union as well.

Visit Co-op

4. Swinton

Swinton has a specific type of insurance designed to suit the needs of young drivers. It's available on all levels of coverage, which means the policyholder can customize the insurance based on their needs.

They also offer black box insurance, allowing the new drivers to establish a safety record and reducing the chances for a claim. This effectively lowers their premiums.

Visit Swinton

5. One Call Insurance

Through their free membership service, One Call Insurance provides breakdown cover, which can be a lifesaver for a young driver.

Responsible named drivers can be added to the policy, reducing the risk of an accident and the cost of the insurance. The company also allows both the main driver and the named drivers to build up their own no claims discount for each year without a claim.

Visit One Call Insurance

6. 1st Central

1st Central is one of the best insurance companies for young drivers. Using their services, a young driver can get a free courtesy car when using approved repairers, lost keys cover, and cover for damaged caused by an uninsured driver.

There is also the opportunity to build a no-claims discount and drive other cars in case of an emergency. If the policyholder needs to make a claim, customer service agents can help do it quickly and efficiently.

Visit 1st Central

7. Carole Nash

Carole Nash insurance is designed for specific types of vehicles, such as classic or race cars. However, young drivers can still take advantage of it if they own a classic car and drive it only occasionally.

The benefits include breakdown cover, legal cover for non-fault accidents, choosing one's own specialist repairer, and many more.

Visit Carole Nash

8. Saga

Saga is primarily available for drivers aged 50 and up. However, you can still get cheap car insurance for young drivers with them. This could be a great option if you have a parent or another older relative who would be willing to be the policyholder on your behalf.

One of the biggest perks of Saga is that they offer key protection as a standard service and many more features in the advanced package.

Visit Saga

9. Tempcover

With Tempcover, young drivers can get the benefit of choosing how long they will drive, which can save them a lot of money.

They can also take advantage of the standard short-term policy with fully comprehensive cover. This can be customized to suit individual needs without the no claims discount being affected.

Visit Tempcover

10. Hastings Direct

Hastings Direct is another one of the best insurance companies for young drivers. The features include black box insurance, breakdown, motor legal cover and personal accident cover and more.

Apart from creating custom plans, Hastings Direct allows policyholders to add other vehicles from their households, saving money for multiple vehicle owners.

Visit Hastings Direct

11. GoCompare

GoCompare is a site that's designed to help find everyone the insurance policy that best suits their needs and budget. It works by comparing numerous insurer quotes and giving an objective picture of the available options.

In return for using their services, GoCompare provides excess coverage, something young drivers can really appreciate.

Visit GoCompare

12. Confused

Confused is another tool that you can use to get cheap insurance for young drivers.

By comparing prices for monthly or annual payments and adding the features they need, the drivers can find the right policy to suit their budget.

From insurers that offer no-claims bonuses to companies that provide black box insurance, Confused can find them all.

Visit Confused

Tips for Younger Drivers When Choosing Insurance

Finding inexpensive car insurance as a young driver isn't easy, but it isn't impossible. Here are some tips to help you find the right policy for your needs.

Explore All Your Options

When looking into the best car insurance, it's important to consider all the possible options. While comparison sites can give a pretty good idea of what different insurers may offer you, they don't contain every insurance company.

For this reason, it's a good idea to look up the websites of the insurers yourself and ask them for quotes directly.

Ask around your friends and family. They might be able to recommend a reliable insurance provider you can trust to help if you need to make a claim.

Check the online user reviews of all the insurance companies you are considering on an independent review site.

Install a Black Box

The reason insurance prices are expensive for young drivers is the high risk of making a claim. A black box can show your insurer that you are a responsible driver who will be less likely to get into an accident.

Black box insurance works by having a device installed in your car that monitors your driving and sends this information to your insurer. If they see that you are driving well, they will decrease your premium at renewal.

Avoid Third-Party Coverage

While choosing the cheapest coverage may seem enticing, it can be the one that covers the least, which means it may be the most expensive in the long term.

For example, if you get third-party coverage in the UK (and you cause an accident), you will only have coverage for the other party's damages.

This means that your damages, regardless of their magnitude, will not be covered. If you invest in comprehensive coverage, you can even get your car replaced, whether you caused the accident or not.

Choose the Right Vehicle

When it comes to car insurance for young drivers, your vehicle can make a huge difference. If you are looking to buy a new vehicle, you may want to consider choosing a car based on the amount it will take to insure it. Cars are placed into different insurance groups according to their power, price and part costs.

It's a good idea to compare several insurance groups to see which one can help you save the most money and choose your new set of wheels accordingly.

Tell the Truth

When looking for the best car insurance for young drivers, it's always important to tell the truth.

If you decide to make any modifications to your car (or buy it already modified), make sure to disclose this to your insurer.

Likewise, if you have already made a claim before or plan to drive hundreds of thousands of miles a year, you should be honest about this with your insurer.

If you aren't honest when buying the policy, then get into an accident and try to claim, your policy will be invalid. This is an important personal finance tip with any type of insurance.

Not only will your insurance company not pay out, but providing false information to get a cheaper premium is fraud, which is punishable by law.

You should also tell your insurer of any changes that happen after the purchase of the policy. If you move, change jobs or lose your employment, make sure to notify your insurer about this as well.

Don't Auto-Renew

One of the best financial tips is to not auto-renew.

When a policyholder auto-renews their contract, insurers become confident in their ability to retain the client even if they raise the price of the policy, which they often do. Plus, the process of auto-renewal can come with added administration fees, further adding to your expenses.

Make sure to remember your renewal date, and when you are a month away from it, start looking into your options. Even if you find the best policy at the same insurance company, it could still be half the price of a renewed contract.

Add a Responsible Occasional Driver

Adding an older family member with a valid driving license as a second driver to your policy can decrease its price. The insurance companies will automatically consider that the car will be less likely to get into an accident if it's driven part-time by a more experienced driver.

Some insurers will allow you to add a third driver, further lowering the risk of a claim. Just make sure to add people who will actually drive the car.

Final Thoughts

At the end of the day, what makes the best insurance for young drivers isn't too different from what makes it best for more experienced drivers. That being said, there are a few companies out there who aren't afraid to give a young driver a great deal.

The terms of payment and the pricing may differ for new drivers, so it's worth looking into several options. Finding the car insurance policy that suits your needs and budget is vital.

Make sure to do your research and remember, the cheapest policy is not always the best.


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