You are here: Home - Insurance -

Car insurance is getting cheaper for young drivers

Written by: Emma Lunn
Typical car insurance premiums for 17 to 21-year-olds fell 14% from 2020 to 2021, from an average premium of £1,173 to £1,008.

The figures come from car insurance comparison website Quotezone which also found that drivers aged 22 to 25 were now paying an average of 6% less for their cover than they were last year – falling from a typical premium of £833 in 2020 to £783 this year.

The firm says its research, based on a sample of more than 50,000 car insurance policies, shows that 17 to 21-year-olds still pay an average of 38% more than other young drivers, and that new drivers across the 17 to 29 age group pay on average 53% more than experienced motorists.

Quotezone’s research reveals that newly qualified motorists can expect to see their car insurance premiums drop by an average of 29% after they’ve been driving for two years with no insurance claims.

Greg Wilson, Quotezone founder, said: “Young drivers, particularly those aged 17 to 21, have had a tough year with driving lessons and testing on hold, and now delayed. We expect the volume of young drivers to surge, once the queue for testing settles down, as people have had more time at home practicing their driving skills with friends and family.

“In terms of car insurance costs, it’s welcome news that premiums for this age range have fallen – it can often be expensive given their inexperience. Average premiums start to fall by nearly a third as drivers gain more time behind the wheel – especially if they have two years driving safely with no claims made.

“There are things brand new drivers can do to help them find the most competitive quotes though, such as choosing a car with a smaller engine, avoiding modifications, parking in a garage or on a private driveway, and opting for a telematics product which allows them to showcase their safe driving right from the get-go.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week