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If you’re looking for car insurance for 17-year-olds, it’s likely you or your child have recently passed their driving test. But while getting out on the road as a newly qualified driver can be an exciting time, it can also be expensive.
The cost of car insurance for a 17-year-old will typically be far higher than insurance for an older driver with years of driving experience behind them. This makes it all the more important to try and find a cheap car insurance deal without scrimping on cover.
The average cost of car insurance for 17- to 19-year-olds is £1,268.54. That’s based on annual comprehensive car insurance policies purchased through MoneySupermarket between October and December 2023.
Fortunately, the rule of thumb for car insurance is that the older you get, the cheaper your car insurance will become.
For example, when you get into your 30s, your car insurance should drop significantly – drivers in that demographic paid an average £872.41 between October and December 2023. And for drivers in their 50s, the average price is just over £480.
Of course, the exact costs of your car insurance will depend on other factors, such as where you live (eg, if you live in an area with higher crime rates, you’ll pay more), the type of car you drive and your driving history. Building up a no-claims bonus will also help reduce costs; this gives you a discount for each year you don’t make a claim on your insurance.
Car insurance for 17-year-olds and new drivers is generally more expensive because insurance providers consider this category of drivers as higher risk. Young drivers have less driving experience on UK roads and are statistically more likely to be involved in an accident, so insurers offset this risk by charging more for cover.
Some reasons for this increased risk include that the brain’s prefrontal cortex, essential for regulating impulse behaviour, doesn’t reach full maturity until people reach their mid-20s. Because of this, young drivers tend to be overconfident, and peer pressure can encourage dangerous driving as they show off to their friends and take more risks. Research shows that newly qualified drivers with a car full of passengers of a similar age are four times more likely to be in a fatal crash than when driving alone. Younger drivers are also less likely to crash when carrying older adult passengers.
On top of this, younger drivers tend to drive faster because they underestimate the risks associated with speeding. Their inexperience means they cannot spot hazards as easily, and younger drivers are more likely to use their mobile phones at the wheel, less likely to wear a seat belt and more likely to drive at night when visibility is poor.
As with other drivers, 17-year-olds usually have three types of car insurance to choose from:
When comparing policies, it’s worth looking at the cost of all three types of cover, as fully comprehensive cover won’t necessarily be the most expensive. Statistically, drivers taking out third-party policies are more likely to claim, which means premiums can actually be higher compared to fully comprehensive policies.
With telematics insurance – also known as black box insurance – a device is installed in your car that monitors your driving habits (some insurers record this via a smartphone app).
Insurers will be looking at how fast you drive, how sharply you brake, the time of day or night you drive, where you drive and how far you drive. Those who drive safely and within the speed limit will be rewarded with lower premiums than those who drive erratically. Some insurers might adjust your premiums monthly, while others will offer a discount at renewal.
This can be a great option for 17-year-olds who are confident in their ability to drive safely, but haven’t got the experience behind the wheel to back that up to insurers.
If you only intend to drive infrequently after passing your test, you could consider temporary car insurance. This will allow you to drive someone else’s car for as little as one hour, normally up to around 30 days, and can be arranged in a matter of minutes. So perfect if you want to go away for the weekend, but don’t need car insurance full-time.
Most temporary car insurance policies are fully comprehensive, and, were you to have an accident, the no-claims bonus of the car’s owner wouldn’t be affected.
If you don’t have your own car and you live with your parents, it’s fairly straightforward to be added to your parents’ car insurance as a named driver.
However, while this can lower the cost of car insurance for a younger driver, it’s likely to increase the cost of the policy for the main driver (the parent).
Being added as a named driver also means you must drive the car less frequently than the main driver; otherwise, you could be found guilty of an illegal practice known as fronting.
“If you’re taking out car insurance for the first time as a 17 year old, hopefully your parents will be doing most of the heavy lifting for you. If you’re just going to be driving the family car occasionally, you can usually be added to your parents’ insurance as a named driver.”
Although car insurance for 17-year-olds is expensive, there are steps you can take to reduce these costs. It’s worth keeping the following in mind:
On top of this, you should avoid several tactics when trying to lower car insurance premiums for 17-year-olds. These include:
According to car insurance provider Admiral, the top 10 cheapest cars to for a 17-year-old to insure are:
These cars all fall into lower car insurance groups. A car’s insurance group dictates how expensive it is to insure.
There are 50 insurance groups, and all cars are sorted into one based on their make and model. Those in group 1 are generally the cheapest to insure, while those in group 50 are the most expensive. Cars in group 1 tend to have good security and safety features, cheaper repair costs, smaller engine sizes and a low market value. By contrast, those in higher groups tend to have more powerful engines and are more expensive to repair.
Besides car insurance, there are several other costs 17-year-olds will need to factor in when running a car. These include:
Fuel
By the end of January 2024, it cost £77.17 to fill up a petrol Ford Fiesta, and £81.52 to fill up its diesel counterpart, according to the RAC Foundation. With the cost of petrol and diesel so high, so it’s worth trying to reduce your costs by car sharing where possible and driving your car more efficiently. You can do this by accelerating gently, reducing your speed and taking heavy items out of the car boot when you don’t need them. If you’re buying a car, it’s worth looking for one with good fuel consumption.
Road tax
Also known as vehicle excise duty, you’ll need to pay this tax annually if you drive your car or keep it on a public road. The amount you pay will depend on the model of your car and when it was registered. A vehicle kept off the road must also be taxed or have a Statutory Off Road Notification (SORN).
MOT test
If your car is over three years old, you must pay for an annual MOT test to ensure it’s safe to drive. This is a legal requirement, and the maximum price for a car’s MOT test is currently £54.85. Remember that your car insurance provider can void your policy and refuse to pay out in the event of a claim without an up-to-date MOT certificate, even if you’ve paid your premium.
General maintenance costs
As well as an MOT, you should also get your car serviced regularly to ensure everything works as expected and fix any problems early on. The Royal Automobile Club figures show a full service for a small-sized car costs £170 to £210, while a service for a medium-sized car costs £210 to £300.
Potential parking or residential permit costs
Depending on where you live, you might also have to pay for a resident parking permit, so be sure to factor this into your budget. According to Transport for London (TfL), council residents’ parking permits in controlled parking zones can cost £120 a year or more. Parking charges in public car parks can also add up.
Ultra Low Emission Zone (ULEZ) charges
If you live in Greater London, check whether you must pay the daily £12.50 ULEZ charge. This will depend on the type of car you drive; you can check your vehicle on the TfL website. The Congestion Charge also applies if you drive in Central London during set hours, costing £15 a day.
Car insurance is a legal requirement, regardless of your age. If you are caught driving while uninsured, you could receive a £300 fine and six penalty points on your licence.
For every year you don’t make a claim, you’ll build up a no-claims discount that will reduce the cost of your car insurance. Different insurers will have different maximum limits on how many years’ bonus you can obtain.
Since your no-claims bonus is one of the best tools in your arsenal for keeping the cost of your cover down, you should do what you can to protect it. This could involve paying for small repairs instead of making a claim, or taking out no-claims bonus protection as an add-on (although this is normally only available once you’ve built at least a four year discount).
When comparing car insurance policies, several optional extras can be added to your policy. You’ll need to pay more for these, but some are worth considering. Breakdown cover, for example, will provide you with roadside assistance if you break down mid-journey, courtesy car cover will provide you with another car to drive if yours is in the garage for repairs, and legal expenses cover will cover legal fees if you’re involved in an accident that’s not your fault. If you want to drive abroad, you’ll also need driving abroad cover.
