Best Car Insurance Companies For Young Drivers - It's no surprise that young, teenage drivers pay more for car insurance. A young driver's lack of experience and limited driving history makes insurance companies potentially risky to insure, so they charge more to insure new drivers. But how much will a new driver pay? We've gathered the figures to determine the cost of car insurance in the UK for an 18 year old driver by capital city, so you know how much you can expect to pay depending on where you live. Prices will be similar for 17 and 19 year olds.
If your priority is price, you'll likely choose one of the cheapest plans available. The team collected more than 400 insurance offers for young drivers in 10 UK cities and calculated that the average premium for cheap comprehensive insurance for an 18-year-old driver is £1,752 per year. However, rates varied considerably by region, with young drivers in Liverpool, Birmingham, Bradford and Manchester being offered more than £2,000 a year. Young drivers in Sheffield and Bristol paid the least in our study, which was just over £1,100 a year. This means that young drivers in some regions pay almost twice as much as young drivers in other regions.
Best Car Insurance Companies For Young Drivers
Between the high cost of insurance and the average driver spending £1,000 on driving lessons (costing £23 for an hour of tuition), being a young driver doesn't come cheap.
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To determine how much a young driver would typically pay for comprehensive car insurance, we collected quotes for a sample of 18-year-old drivers with a Full UK License driving the UK's most popular car, the 2016 Ford Fiesta. (For more on how insurance costs vary by car make and model, see our article What are the costs of insuring the UK's most popular cars?) We've collected a total of over 400 quotes for drivers living in Birmingham, London. Leeds. , Sheffield, Bradford, Manchester, Liverpool, Bristol, Newcastle and Sunderland drive less than 5,000 miles per year. Offers include replacement vehicle, breakdown, personal accident and statutory insurance. Offers were received from the plans of the following insurance companies:
The guidelines on this page are based on our own analysis and are intended to help you identify and narrow down your options. We do not recommend or tell you which product to buy; Do your own due diligence before entering into any contract. Read our full statement here.
Advertiser Disclosure: Authorized and regulated by the Financial Conduct Authority (FCA), FCA FRN 797621. is a personal finance, research and data website. Reviews appearing on this site are based on our own analysis and opinions focused on product features and prices, not services. Some of the offers that appear on this site come from companies from which they receive compensation. This compensation may affect how and where offers are displayed on this site (for example, the order in which they are displayed). Please see our Advertiser Statement for more information. This site may not review or include all companies or all available products. While we try to be comprehensive and up to date with product information, prices and terms may change after publication, so always check with the provider for details. Consumers should ensure that they do their own due diligence before entering into any contract. Regional insurance companies are also an affordable option, as companies like Erie and Country Financial can offer even lower rates than State Farm.
Packing your parents' car insurance can save you a significant amount of money - an average of 62%, according to an analysis of thousands of offers from different states. For an 18-year-old driver, full car insurance on their own policy averages $4,917 per year.
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We've collected tens of thousands of quotes from every zip code in the nation's three largest states, Illinois, Pennsylvania, and Georgia, to find the cheapest rates for teens and their parents. Sample drivers included an 18-year-old, a 50-year-old childless, and an 18-year-old adult.
Factors that help determine the best choice include low prices, youth discount options, and easy accident amnesty. Complete methodology
A State Farm policy for an 18-year-old costs an average of $3,518 per year, which is 29% cheaper than the national average of $4,917.
While not an option for everyone, Country Financial, Erie, and USAA are generally the cheapest insurance companies. Erie is only available in 12 states and Washington DC, while Country Financial is available in 19 states. USAA only offers policies to current and former members of the military.
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Young drivers are almost always paid significantly more because they are less experienced behind the wheel and more prone to risky behavior. A young driver will pay three times more for full coverage than a 50-year-old driver.
If you're a parent looking to add your child to your policy, Car Owners is the cheapest option at just $1,832 per year for a 50-year-old and an 18-year-old.
That's just $501 more than a teen without insurance, thousands of dollars in savings. Erie, the Farm Bureau, and State Farm are less expensive than the average options for adding a teenager to your policy.
Keeping your child on your policy saves families an average of $3,108 per year - a 62% reduction in car insurance costs - compared to the cost of the same 18-year-old getting their own policy.
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Car Owners is often the cheapest option for parents adding a young driver, in part because the company has a flat fee for drivers under 19. It is the cheapest carrier, adding a 16, 17, and 18-year-old passenger behind the USAA, and the second cheapest for a 19-year-old.
However, other companies' rates can vary greatly depending on the age of the young driver participating in the policy. For example, adding a 19-year-old to the USAA policy costs $1,395 less per year compared to a 16-year-old.
If you're in a situation where as a young driver you need to buy insurance on your own, State Farm can help keep your costs down. Among widely available insurers, State Farm's average monthly rate of $293 is one of the best you can find.
You can reduce this further with discounts like a good student discount or the Steer Clear program, which allows young drivers to lower their fares by taking a safety course. However, the company does not offer accident amnesty or gap insurance, which can be key to avoiding post-accident costs.
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Discounts are an important tool in reducing the high rates that young drivers pay, and Erie offers a good set of discounts for young drivers.
Erie has some of the lowest rates we've found, only $3,067 a year for a young driver and $2,088 for an older driver who adds a younger driver to their policy. However, the company only offers coverage in 12 states.
Young drivers tend to be more reckless than their older counterparts, and forgiving an accident allows car owners to recover from the first incident. The company offers more payment options for accident forgiveness, which means your rates won't increase after an accident.
Some companies require drivers to be long-term customers to take advantage of this benefit. Auto Owners also offer cheaper-than-average coverage for teens individually and the lowest rates we've found for adding a teen driver to a parent policy. One downside is that you will need to work through an agent and you cannot manage your policy online.
Compare Car Insurance Rates: Get Quotes (2022)
There are several important ways young drivers can lower the price of car insurance and save money.
The first is eligibility for discounts, as most major insurers offer discounts that young drivers can take advantage of.
You can also find out if your insurer offers accident forgiveness at a reasonable price. It will cost more in the short run, but young drivers are prone to accidents and the savings will be substantial if they do.
Accident insurance is expensive for younger drivers because this demographic is statistically more likely to have an accident and be claimed than more experienced drivers.
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It is important to remember that if a young driver is at fault in an accident without collision coverage, they will have to pay for the repair themselves. If your vehicle is not old and is only worth a few thousand dollars, we recommend getting collision insurance.
Has created a dedicated panel of professionals from various fields of expertise to help you solve difficult issues and make smarter financial decisions.
When parents take charge of a major purchase like a car for their teenage child, do you think it's a teachable moment worth the financial cost? Why or why not?
Many of the traits that make up what it means to be responsible, such as self-control and late gratification, continue to develop into adolescence and early adulthood. In fact, the prefrontal cortex, the part of the brain responsible for these processes, continues to mature until the age of 25.
Average Cost Of Car Insurance For Young Drivers 2022
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