Driver Hub  Driving advice  Top tips   8 smart ways for young drivers to save money on car insurance
Young man holding piggy bank

8 smart ways for young drivers to save money on car insurance

Gary Thompson profile

Gary Thompson

January 22, 2020

Driving advice Learning to drive News 12 min read

Save money on your car insurance

There are many different ways that young 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. With almost 30 years working in car insurance, I’ve highlighted some advice on finding the best insurance deals for young and learner drivers.


Choose the right car

Consider the type of car before sealing the deal and buy 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.

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. Try to avoid buying a car with modifications (or adding modifications) in order to keep the costs down.

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 savings coming your way on your insurance renewal. There’s 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 buster.

Black Box Insurance→

Get seamless cover before and after you pass your test on your own car!


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 an expensive luxury. Thankfully you can have your cake a eat it, at a fraction of the price by getting insured to drive a friend’s or family member’s car – with a short term cover, as and when it you need it, or specialist annual cover like our Named Young Driver Insurance that allows you to have your own annual policy on a parent’s car. The great news is that young drivers start earning their No Claims Discount – which will save them money when they’re ready to buy and insure their own car!

Explore your options

You’re first thought may be to head over to a comparison site, if you’re looking for main insurance. Likewise, if you’re a parent looking to get your child cover on your own car, you’re first thought may be to call insurance company. The best deals aren’t always on comparison sites. make sure you check out direct sites too (and ask friends for recommendations!). Remember – 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.

Look out for discounts

Check if you’re eligible for any discounts and sign up to newsletters to hear first about deals and offers. Here are Marmalade, we offer a range of loyalty and seasonal discounts – sign up to our Young Driver Newsletter or Parent Newsletter to be the first to hear about discount offers and deals – and we’ll enter you into a prize draw! It’s also worth knowing 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 of premium quoted. Don’t be tempted to lie on your insurance quote to get a cheaper premium – as this could invalidate your insurance!

Named Young Driver Insurance→

Get annual cover before and after you pass your test on a parents car!


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 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 Discount earlier. 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. Not 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 over £200 less, on average, than full licence holders!*

Third party cover could cost you more than you think

It’s a common misconception that 3rd party is always cheaper, but this often untrue, plus you would need to consider that repairs to, or replacement of your car, wouldn’t be covered with 3rd party only car insurance. If access to a car is essential for you and you don’t have enough stashed away in your bank account to cover major repairs or replacement of your car, you are likely to be much better off with comprehensive cover. Discover more about the difference between Third Party cover and Comprehensive cover in our blog!

I hope you found these tips helpful when it comes to purchasing car insurance for young drivers! Keep an eye on our blog and social channels for more tips and advice.

* Provisional licence holders pay £265 less for New Driver Insurance on average, than full licence holders, and £202 less for Named Young Driver Insurance. Based on Marmalade sales from 1.08.2019 – 31.10.2019.

Gary Thompson profile

By Gary Thompson

'Hi, I’m Gary and I recently joined Marmalade as Underwriting Director. Thanks to my experience working within the trade of almost 3 decades, I’m pleased to be able to share my knowledge and insurance expertise with young drivers and their parents.'  See more posts by Gary

Share this article

confused teen girl
News 7 min read

Driving during lockdown - the do’s and don’ts

Chloe Martell profile

Chloe Martell

November 6, 2020

As we get geared up for the second lockdown we have seen this year, there are, of course, numerous questions about… well pretty much everything! Now whilst we unfortunately don’t have the answers to a…Read more

Learning to drive in pandemic
Learning to drive News 11 min read

Can I learn to drive during lockdown?

Chloe Martell profile

Chloe Martell

December 2, 2020

Updated: 2nd December 2020 With ever changing restrictions, learner drivers and parents around the country will be wondering if driving lessons and driving tests will be suspended and cancelled, and what is happening next! We’ve…Read more

Interior Audi A1 steering wheel
Owning a car 7 min read

Audi A1 - Chloe's review

Chloe Martell profile

Chloe Martell

March 7, 2020

As a young driver, whilst I like to think that reading reviews about cars from petrol heads will help me when it comes to choosing my car, it really doesn’t. I want to know what…Read more