Best Insurance Rates For Young Drivers - It's no surprise that young teenage drivers pay more for car insurance. A young driver's inexperience and limited driving experience pose a risk to car insurance companies, so they charge more to insure new drivers. But how much does a new driver pay? We've crunched the numbers to determine the cost of UK car insurance for an 18-year-old driver in England in a big city, so you know what you can expect to pay depending on where you live. The standards will be the same for 17 and 19 year olds.
If price is your priority, you'll probably choose one of the cheapest plans available. The team collected more than 400 young driver insurance policies in 10 cities in England and calculated that the average premium for cheap cover for an 18-year-old driver was £1,752 a year. But prices varied widely, with young drivers in Liverpool, Birmingham, Bradford and Manchester being quoted more than £2,000 a year. Young drivers in Sheffield and Bristol pay the least in the study, at more than £1,100 a year. This means that young drivers in some areas pay almost 2X more than young drivers in other areas.
Best Insurance Rates For Young Drivers
Between the high cost of insurance and the average driver spending more than £1,000 an hour driving (£23 per driving hour), driving for young people doesn't come cheap.
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To find out how much a young driver would typically pay for car insurance, we've gathered examples of an 18-year-old male driver with a full UK license driving a 2016 Ford Fiesta, the most popular car in the UK. (For more information on how insurance costs vary by car make and model, see our article, How much does it cost to insure the most popular cars in the UK? , Sheffield, Bradford, Manchester, Liverpool, Bristol, Newcastle and Sunderland, which drive less than 5,000 miles per year. Offers included free car cover, breakdown, personal accident and statutory cover. Offers collected from the plans of the following car insurance companies:
This site guide is based on our analysis and is intended to help you identify your options and narrow down your options. We do not recommend or tell you which product to buy; Before entering into any contract, do your due diligence. Read our full coverage here.
Advertiser Disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. It is a personal finance research and data collection service. The reviews that appear on this site are based on our analysis and opinion, with a focus on product features and pricing, not service. Some of the offers that appear on this website are from companies that receive compensation. This fee may affect how and where products appear on this site (for example, in what order). For more information, see our Announcement for Advertisers. The Website may not review or include all companies or all available products. While we do our best to keep product information complete and up-to-date, prices and terms may change after we publish them, so always check with the supplier for details. Buyers should ensure that they carry out their due diligence before entering into any contract. Younger drivers pay more for car insurance than older drivers, but prices also rise after age 60.
Age is one of the primary factors that insurance companies take into account when determining auto insurance rates. For a car insurance company, a driver's age measures their driving experience and risk of accidents.
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The youngest and oldest drivers outperform middle-aged drivers, the analysis shows. Rates drop sharply from age 16 to 25, then start to rise again after age 60.
Teen citations are three times more expensive for drivers in their 30s and nearly four times more expensive for drivers in their 50s. As young drivers gain more experience and turn 25, car insurance costs drop by 33%.
Prices generally drop with each birthday. When drivers turn 50, they will see their greatest value. However, at age 60, the cost of car insurance starts to rise and compares to what drivers see in their 40s.
As a young driver, choosing the right insurance company can mean big savings. The difference between companies can be more than $10,000 per year.
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Which insurance is the best option can change every year, so we recommend that you get multiple quotes each time your policy comes up for renewal.
Farm Bureau has the lowest rates we found for 16-year-old drivers, averaging $3,003 per year. That's a bit cheaper than Erie ($3,111) and USAA ($3,935).
Erie is only available in 12 states, but it also offers more discounts for young drivers. Farm Bureau has a Young Driver Safety Program, but coverage options may vary by state.
Farm Bureau also offers the lowest rates for 17-year-old drivers, followed by Erie, USAA and State Farm. Farm Bureau's cost of $2,660 per year is less than half the overall average, representing a savings of more than $3,000 per year.
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Farm Bureau, Erie and USAA offer the cheapest rates for 18-year-old drivers. Those three companies have prices on average 47% lower than the average driver of that age.
USAA and Erie are not available to most drivers, and Farm Bureau options may vary depending on where you live. If you're looking for the security of national insurance, Travelers offers lower rates—an average of $3,219 a year, with accident forgiveness options and more discounts for young drivers.
Gender also plays a big role in the cost of car insurance. Over a lifetime, men will pay about 9% more than women, although the price difference depends on age.
By age 21, for example, men pay an average of 13% more than women. This difference narrows after age 30, when the price of a female driver is less than $20 per year lower until the mid-60s.
Car Insurance For 16 Year Olds
Young drivers pay more because statistics show that teenagers are inexperienced, which makes them more prone to traffic accidents than other age groups.
So, because the insurer thinks you're more likely to have an accident when you're younger, your rates will be more expensive. Experienced drivers in their 30s to late 50s have better driving skills and road maturity, which usually means fewer accidents.
As drivers enter their 60s, however, the trend begins to slowly reverse as age and slower reflexes begin to affect driving. Insurers usually start charging older people when they enter their 70s. An 80-year-old driver ends up paying slightly more than a 25-year-old driver.
The most effective way for teenagers and young drivers to save money on car insurance is to shop around, apply for discounts and include someone else's policy.
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We recommend that you get quotes from at least three companies. Most major insurers allow you to start a quote online, making it easy to compare prices.
Keeping good grades (for young drivers still in school) and taking defensive driving courses can save drivers up to 10% on car insurance costs.
For bigger discounts, companies like Allstate offer a "55 and Retired" discount where safe, retired drivers over the age of 55 will automatically qualify for a 10% discount. Some companies also allow drivers over 55 to take defensive driving courses to qualify for a discount.
We found that it's 62% less expensive to sign up for your parents' car policy than it is to start driving alone as an 18-year-old.
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This is because your parents share in your risk as a young driver, so insurance companies are more willing to pay a lower price.
Watch out, however, for your parent's level to increase significantly. If they're still willing to add it, that's a surefire way to get a lower price.
Status data was collected using Quadrant Information Services. Your quotes will vary as prices should be used for comparison purposes only. Prices are generally collected from insurance claims.
To get a phone insurance quote, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! If you are a new driver, a comprehensive car insurance plan is important. We've analyzed hundreds of auto insurance rates and benefits to find plans that offer the most competitive premiums, the best coverage, or a great combination of both.
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Because car insurers consider younger or inexperienced drivers to be more risky, premiums are usually highest for drivers under 27 or those with less than 2 years of experience. However, if you prove to your insurer that you are a responsible driver with a clean accident-free record, you can expect your premiums to drop significantly through a no-claims discount bonus increase of 10% each year (up to a maximum of 50 ) %) Until then, still you can find car insurance plans that offer great coverage at low rates.
If you are a young driver who wants to reduce out-of-pocket expenses for accidents or repairs,
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