Car insurance for new drivers - Car Insurance Advice. Once you’ve passed your driving test you’ll likely be itching to get on the road – and whether you’ve already found your first car or you’re still considering your options, now’s a good time to start thinking about your car insurance.
Do new drivers need car insurance?
Whether you’re a new driver or have been on the road for years, if you own and drive a car, you are required by law to have at least third-party car insurance. If you are discovered using a vehicle without insurance, you could be fined, face court prosecution, or your car could be taken away or destroyed.
What type of insurance do I need as a new driver?
There are three main types of car insurance you can consider
- Fully comprehensive - Fully comprehensive insurance protects you, your car and other motorists from any damage you cause. It also covers medical expenses, repairs, fire damage and theft of your vehicle
- Third-party, fire and theft - Third-party, fire and theft policies cover repair costs for other people, their cars and their property, as well as your own vehicle if it’s stolen or damaged by fire
- Third-party - The minimum legal requirement, third-party insurance will only cover any damage you cause to other cars and property
Can black box insurance save new drivers money?
Telematics car insurance is a good option for new (and young drivers), as - if you drive carefully - you can save money on your car insurance.
Your insurance provider will monitor your driving habits, through either a small black box installed under your dashboard, a plug-in device or an app on your smartphone. Things like your speed, acceleration and braking will be tracked, as well as your location and mileage. Your insurer will then use this information to adjust your premiums based on how you drive.
You can view your black box data on your insurance provider’s website or app, allowing you to adjust areas of your driving and potentially earn a lower premium.
What are other options car insurance for new drivers?
- Pay as you go - Bases your premiums on when, how well and for how long you drive. Pay-as-you-go car insurance charges a flat rate while your car is parked, and another rate for the miles you drive
- Low mileage - The less time you spend on the road the lower the chances are you’ll be involved in an accident. If you can give a lower estimate of your mileage when taking out cover, you’ll likely save some money
- Short-term - If you don’t intend to be driving year-round, an annual policy might not be the best option for you. Consider short-term car insurance for stretches of one to 30 days
- Named driver insurance - Adding another more experienced driver to your policy can save money on your premium. It suggests to insurers that you won’t be the only person driving the car, therefore the assumed risk won’t be so high
How can get cheaper car insurance as a new driver?
There are a few ways new drivers can reduce the price of their car insurance
- Limit your mileage - Cutting down on how much you drive could save you money. Because you’re not on the road as much, you’re less likely to have an accident
- Pay annually - A lump sum almost always works out cheaper than monthly payments because interest is factored into monthly direct debit payments
- Buy a sensible car - Smaller, less powerful cars are cheaper, safer to drive and less attractive to thieves and vandals
- Keep your car safe - Parking your car in a locked garage keeps it safe from criminals, making it less likely you’ll need to claim for theft or vandalism
- Pay a higher excess - Volunteering a higher excess fee indicates you won’t make any frivolous claims on your policy
- Take out telematics - Insurers can monitor your driving habits with telematics hardware, so sensible drivers earn lower premiums
- Add a named driver - Adding an experienced driver to your policy tells insurers it won’t be just you driving, so they’ll reduce the price
- Pass advanced driving course - As car insurance generally view advanced drivers as being less likely to have accidents, passing an advanced driving course can help cut car insurance costs
Car insurance is a legal requirement for drivers in the UK, thanks to the continuous insurance enforcement rules brought in as part of the road safety act of 2006. This means that unless your car is registered as off the road with a SORN, or in the process of being bought or sold, you could be faced with a fine for not insuring your vehicle.
When you take out car insurance as a new driver, be careful about the additional policies you choose – they do bolster your cover, but you’ll generally need to pay more for the extra protection. Depending on your provider, you’ll usually have the choice of
- Breakdown cover, which gives you access to roadside assistance if your car breaks down
- Windscreen cover, which lets you claim for the cost of replacing a cracked or shattered windscreen
- Legal cover, which will pay out for certain legal costs related to a claim by you or another party
- Driving abroad cover, which insures you for taking your car overseas and driving in the EU
- Courtesy car cover, which provides a replacement vehicle for you to use while yours is in repair
- Multi-car cover, which lets you drive more than one car under a single policy
- Personal accident cover, which pays out in the event that you’re injured or killed in a road accident
- Replacement keys, which covers the cost of replacing a set of keys if they’re lost, damaged or stolen
- Wrong fuel, which pays for repair costs if you accidentally top up the tank with the wrong fuel
If you’re involved in an accident and you decide not to make a claim, you should still inform your insurer. They’ll keep their records up to date, so they know what condition your vehicle is in and whether this will affect your likeliness of claiming sometime in the future.
If you don’t keep your insurer updated, it’s possible this will void your car insurance policy so you won’t be able to claim when you really need to.
