Car insurance for new drivers: 8 tips to save money

Looking for cheap car insurance for drivers under 25? Then check out these top tips that will see you saving!

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Cheap car insurance for young drivers is something many people are searching for, and whilst it may seem difficult to get a cheap car insurance quote for drivers under 25, there are ways to save – you just need to know what to look out for. There are many different ways that younger drivers can save on the cost of their car insurance, from knowing what car to choose, to finding the right policy for their needs – from provisional to full licence. We’ve taken a look at the best ways to cut costs on car insurance for young drivers.

1 Choose the right car

Consider the type of car before sealing the deal and buying it. The type of car driven is a factor when it comes to the insurance price. Every car is put into an ‘insurance group’ ranging from 1 to 50. The more powerful, expensive and rarer the car is, the higher the group and the higher the insurance costs. It’s always worth looking at the insurance groups of the different cars you’re considering before purchasing. We’ve got a guide to help you, showing you cars in low insurance groups, which should save you some money when it comes to purchasing insurance.

2 Black box is best

Insurance prices are based on the risk of you having to make a claim. Unfortunately, this can be quite high for young drivers due to inexperience on the road. A way to combat these high prices is with a black box. Black box insurance is designed to help young drivers keep their insurance costs down. A device in your car will monitor how you drive – drive well, and you could see your insurance premium come down at renewal. There are a lot of misconceptions around black box insurance, a lot of which isn’t true. For instance, did you know our Black Box Insurance has no curfews, meaning you can drive whenever you like? If you’re unsure and want to see what else you may be mistaken on, be sure to read our Black Box Myth Busters.

3 Consider how much you’ll be driving

If you’re not going to be driving all that much but still need to get behind the wheel every now and then, then buying a car and paying for an annual insurance policy may be an expensive luxury. Thankfully you can have your cake and eat it, at a fraction of the price by picking up Pay as You Go insurance. It really does do what it says on the tin - you only pay for the miles you drive, so if you’re not driving a lot - you could be saving more than you think!

The average price for an annual insurance policy for a driver under 25 is £1,954, whereas you can pick up a Pay As You Go Policy for as little as £195 for 500 miles, and then £20 per 100 mile top up!¹ The great news is that young drivers can even start earning their No Claims Discount on this policy, as long as it’s running for a full year – which will see a saving for when the young driver buys and insures their own car.

4 Explore your options

Your first thought may be to head over to a comparison site, if you’re insuring your own car. Likewise, if you’re a parent looking to get your child covered in your car, your first thought may be to call your own insurance company but this can be an expensive way of getting your teen covered. The best deals aren’t always on comparison sites either, so make sure you check out direct sites too (and ask friends for recommendations!). It’s also worth remembering – it’s not all about the price. It’s important to also go with an insurance provider you can trust to help you should you need to make a claim – remember to check out their ratings on an independent review site, like TrustPilot. Sometimes paying a little bit more for the peace of mind is worth it.

5 Look out for discounts

Check if you’re eligible for any discounts! We offer a range of loyalty and seasonal discounts, like if you hold a Learner Driver Insurance policy with us, you’ll then get 10% off any of our car sharing policies and 5% off policies on your own car in the future! Also - sign up to our Young Driver or Parent Newsletters to be the first to hear about discount offers and deals – and we’ll enter you into a prize draw where a young driver can win a brand-new car! Don't forget to check out websites such as Money Saving Expert for some advice on how to save money.

It’s worth remembering that when you’re doing a quote, there are certain factors that can influence the premium – both up and down. These are called rating factors and will be different from insurer to insurer. Adding an experienced named driver to your policy, who has a clean full licence, for example, may reduce the price quoted. Don’t be tempted to lie on your insurance quote to get a cheaper premium – as this could invalidate your insurance!

6 Buy annual insurance whilst learning

You don’t have to wait until you’ve passed your test to get insurance. More and more young drivers are taking extra driving practice outside of their driving lessons. If you know what car you’ll be driving after you pass, it could be more cost effective to buy your cover whilst learning. Prices may be lower on a provisional licence and, with an annual policy, it means you’ll start earning your No Claims Bonus before you’ve even passed your test. It’s important to check the terms of the policy before you buy annual insurance on a provisional licence – as not all companies will provide seamless cover, and many will increase the price on passing the driving test. Thankfully, we don’t do that at Marmalade. Seamless cover, with no price increase on passing, is offered on Black Box Insurance (for young drivers who are the main driver) and Named Young Driver Insurance (for young drivers who are sharing a parent’s car). To give you an idea of what you may save, provisional licence holders pay £373 less, on average, than full licence holders!²

7 Third party cover could cost you more than you think

It’s a common misconception that Third Party Cover is the cheapest insurance available, but this isn’t true - often getting comprehensive cover is not only the best cover, but often the cheapest option. If you do opt for Third Party Cover, you will need to consider the additional costs that will occur if you’re involved in an accident and need to make a claim - as only the third party is covered. This means any damage to your car, replacement of your car, courtesy car, etc, would not be covered or provided.

8 Avoid car modifications

Whilst a flashy set of wheels with sub-woofer or styling kit may be tempting – it’s likely to drive up the cost of cover! This is because modifications can change the way a car handles, or make the car more appealing to thieves – either way, it can increase the likelihood of a claim. Want car insurance for a young driver under £1000? We can’t guarantee that we can help you get a three figure quote, but by avoiding a car with modifications and following the tips above could help keep you get the best possible price.

Get set for the open road!

9 out of 10 of our black box customers have recommended Marmalade to friends or family³
Join thousands of young drivers enjoying comprehensive cover with no curfews or night-time driving restrictions
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