Car insurance is often one of the biggest expenses for young drivers in the UK. Statistically, drivers aged between 17 and 24 are more likely to be involved in accidents, and insurers calculate premiums based on overall risk. As a result, younger motorists often face premiums that are nearly double those of older drivers. According to Go.Compare, the average cost for drivers under 25 is around £828 per year, compared to £476 for those aged 25 to 49.
However, there are practical strategies that can help reduce these costs. By making smart choices about your vehicle, policy, and driving habits, young drivers can significantly lower their premiums. Here are ten effective ways to save money on car insurance in 2025.
1. Start Comparing Quotes Early
One of the most reliable ways to save money is by comparing quotes across multiple providers. Using comparison sites like Go.Compare, MoneySuperMarket, Confused.com, and Compare the Market can reveal huge differences in premiums for the same coverage. Experts recommend getting quotes three to four weeks before your renewal date, as insurers often offer lower rates for early applications. Waiting until the last minute can result in higher costs.
2. Add an Experienced Driver
Insurers consider a car less risky when more than one responsible driver uses it. Adding a parent or another experienced motorist with a clean license and several years of no-claims history as a named driver can lower your premium. However, it is important not to commit “fronting,” which is when the experienced driver is listed as the main driver when, in reality, the young person drives most of the time. This practice is illegal and could invalidate the policy.
3. Choose the Right Car
The type of car you drive has a major impact on your insurance costs. Smaller cars with less powerful engines typically fall into lower insurance groups, making them cheaper to insure. Popular options for young drivers include the Volkswagen Up!, Suzuki Alto, and Fiat 500, all of which cost significantly less to insure compared to larger or modified vehicles. Opting for a used vehicle with a solid service history can also keep costs low, while avoiding modifications helps prevent premium hikes.
4. Consider Telematics (Black Box Insurance)
A telematics device, often called a black box, tracks your driving behavior. Insurers use this data to assess how safely you drive. Maintaining safe habits—such as sticking to speed limits, avoiding harsh braking, and not driving late at night—can earn you lower premiums over time. According to Go.Compare, a 19-year-old driver with telematics pays about £864 per year, compared to £1,096 without. While it can save money, poor driving recorded by the device can increase premiums, so it only works if you drive responsibly.
5. Avoid Automatic Renewal
Loyalty does not always pay in the insurance market. Many young drivers simply accept their renewal quotes without comparing other offers, but this can cost hundreds of pounds more per year. Instead, shop around when your policy is due to expire. Once you find a cheaper quote, contact your current insurer to see if they are willing to match or beat it.
6. Pay Annually Instead of Monthly
While paying monthly may seem convenient, it usually involves interest charges, sometimes as high as 30% APR. If you can afford to pay your insurance premium in one annual payment, you will almost always save money. If that’s not possible, alternatives such as a 0% interest credit card (paid off before interest applies) or setting aside money in advance can help avoid extra charges.
7. Improve Vehicle Security
Where you park and how secure your car is can influence your insurance premium. Insurers prefer cars parked in driveways, garages, or gated car parks over those left on the street. Installing additional security measures such as steering wheel locks, immobilisers, and dashcams can further reduce the cost of your policy. The safer your vehicle, the lower the perceived risk.
8. Adjust Your Job Title (Truthfully)
It may come as a surprise, but your job title can affect your insurance premium. Certain professions are considered higher risk due to claim history data. When filling out forms, many insurers provide dropdown menus with different job titles. Choosing an accurate but lower-risk title, such as “writer” instead of “journalist,” could save you money. Always be truthful, though—providing false information could invalidate your policy.
9. Increase Your Voluntary Excess
Your excess is the amount you agree to pay towards a claim before your insurer covers the rest. While every policy includes a compulsory excess, you can choose an additional voluntary excess. A higher voluntary excess typically reduces your overall premium, though you should make sure you can afford to pay it in case of a claim. For example, many drivers choose £250, but experimenting with higher amounts may help you find a better balance between affordability and risk.
10. Build a No-Claims Discount
Perhaps the most effective long-term way to save money is by building a no-claims discount (NCD). After just one year without a claim, you can often get a discount of 20–30%. After five years, some insurers offer reductions of 60% or more. This discount is tied to you as a driver, not your car, meaning you can usually transfer it if you switch vehicles or insurers. Even if you have an accident, you may not lose your NCD if you’re not at fault.
Final Thoughts
Car insurance for young UK drivers will always cost more due to higher statistical risk, but it doesn’t have to break the bank. By making strategic choices—such as selecting the right car, paying annually, adding a responsible driver, and avoiding automatic renewals—you can significantly reduce your premiums. Over time, safe driving and building a no-claims discount will lead to even greater savings.
While the average 17–24-year-old might face higher costs initially, applying these ten tips can turn an expensive necessity into a manageable part of your budget.
