Young drivers’ insurance premiums fall to lowest this year

New data from price comparison experts shows that young drivers’ insurance premiums have fallen to the lowest price so far this year.

Quotezone analysed monthly insurance premiums for 17 to 24-year-old drivers, with the most recent figures showing that premiums are the cheapest they’ve been since the start of the year.

For the first time in 2024 the average annual policy has dropped to £2,901, over £150 cheaper than the highest premium of £3,055 which was recorded in February.

This decrease, however slight, is a welcome relief for young motorists and their families, who have traditionally faced higher premiums due to perceived risk factors associated with inexperienced drivers.

MONTH	17-24
Jan-24	£2,951.58
Feb-24	£3,055.66
Mar-24	£3,006.11
Apr-24	£3,024.19
May-24	£2,901.91

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Average annual car insurance premiums per month

With the added costs of learning to drive and buying their first car, many drivers can’t afford to get on the road after passing their test, and of those who are driving, 25% are considering quitting due to rising costs*.

To keep the insurance costs down, drivers are encouraged to compare quotes from different providers, pay annually if possible, improve vehicle security and add an experienced driver to the policy.

Quotezone.co.uk CEO and car insurance expert Greg Wilson said: “Young drivers normally have to pay more for their premiums as they have less experience – something insurance providers use to base their risk analysis on and determine costs. However, our most recent data shows a welcome saving for 17 to 24-year-olds.

“Whilst there’s no guarantee that these premiums are going to continue to fall, it’s certainly a step in the right direction.

“Our tips could also help young drivers really start to look at their insurance policies and explore where they can find savings. Simple tweaks such as job title, the time you purchase and how you pay can all help cut costs.”

Savings experts at Quotezone have created a full car insurance index of average premium prices across all age ranges throughout the UK regions in 2024, to help drivers review and find savings.

Here are Quotezone.co.uk’s top tips to help young drivers cut insurance costs:

1. Check your vehicle use

Premium prices can vary depending on your use of the vehicle, it may work out cheaper if a driver is using it for ‘social only’ purposes rather than for ‘social and commuting’ so check how the options affect the price and consider if you can make any changes – just be careful all changes are accurate and reflect how you actually use the vehicle.

2. Check your job title

Job titles often affect the overall premium price, a tweak to your title could help you reduce your premium so try quoting with variations – just make sure the title is still accurate and describes the job you do, incorrect information could invalidate your insurance.

3. Review renewal date

The sweet spot for renewing a car insurance policy is 15 to 24 days before the policy is due to start, as data reveals drivers purchasing during this time save themselves an average of 33-45%.

4. Opt for a smaller engine

Be sure to check your vehicle’s engine size and horsepower, both can impact the cost of your premium. Also, some small engines are turbocharged and that can give them more power than might be expected, which will likely cause the premium to increase.

5. Park in a safe place

If possible, drivers should make use of their garages, driveways or carports for overnight parking. This can keep premium costs down because the safer you can keep your car, the cheaper it is to insure, likely a reduction of at least £140 if you can move your car from the roadside to a private driveway overnight.

6. Opt for telematics or a black box

A telematics policy, or black box insurance starts collecting driving data immediately which can help the insurer with their risk analysis. This way young drivers can demonstrate their safe driving and increase their chances of getting a competitive premium price.

7. Pay annually

If you can, it’s best to pay the annual premium all in one go to knock cash off your policy. Paying annually is normally cheaper because there is no interest to pay.

8. Add another driver

Adding a low-risk driver to your policy could bring down the premium costs especially if the other driver is experienced and has a clean record – just make sure the main driver is actually the one who drives the car the most or you could be charged with insurance fraud.

9. Improve vehicle security

Improving the vehicle’s security by fitting anti-theft devices or dash cams can help drivers get cheaper premiums. It’s worth getting the policy quotes first to consider whether the savings justify the extra cost of the devices.

10. Shop around

Never let a policy auto-renew, even if your provider was the cheapest option for you last year it doesn’t mean they will be the cheapest this year, always shop around, compare insurance products and don’t be afraid to switch providers. It’s an easy process which could lead to substantial savings.  Comparison sites are ideal ways to find better quality products and more competitive prices. 

References:

Full car insurance index of average premium prices across all age ranges throughout the UK provided on the link.

The data uses a random sample of over 100,000 UK car insurance policies from January to May 2024.

*Quotezone.co.uk’s findings are based on a randomised survey of 700 respondents from the UK in July 2023, which represents a margin of error of approximately 5% at a 95% confidence level.