If you’re a new driver in the UK, the first insurance quote you see can feel like a punch to the gut. A 17-year-old can expect to pay around £2,600 a year for cover, according to data from SaveCompare. That’s more than the value of many first cars. For an 18-year-old, the average drops to about £2,400, but it’s still a hefty chunk of any young driver’s budget. The good news is that the price you’re quoted isn’t fixed — it depends on choices you make before you even buy a car.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Insurance companies price new drivers so high because they have no history behind the wheel. Statistically, young and inexperienced drivers are more likely to make a claim. But the system isn’t random — it’s built around risk factors you can control. The car you choose, the type of policy you buy, and even who else is named on the policy all shift the final number. Here’s what you actually need to know.
Before you start comparing quotes, there’s one term you’ll see everywhere: insurance group. Every car sold in the UK is assigned to a group between 1 and 50. The lower the number, the cheaper it tends to be to insure.
How age, car choice, and policy type shift your premium
Your age is the biggest factor an insurer can’t ignore. A 17-year-old pays roughly £2,600 a year on average, while a 25-year-old with the same driving record might pay around £900, according to SaveCompare. That gap isn’t fair, but it’s based on real claims data. The table below shows how premiums drop as you get older, and how telematics changes the picture.
→ Scroll right to see all columns
| Age | Average standard premium | Average telematics premium |
|---|---|---|
| 17 | £2,600 | £1,800–£2,000 |
| 18 | £2,400 | £1,650–£1,850 |
| 19 | £2,100 | £1,500–£1,700 |
| 20–21 | £1,600 | £1,200–£1,400 |
| 22–24 | £1,300 | £1,000–£1,200 |
| 25+ | £900 | £700–£850 |
The car you drive matters almost as much as your age. Cars in insurance groups 1–10 include models like the Volkswagen up!, Toyota Aygo, Hyundai i10, and Ford Fiesta with a 1.0-litre engine. A car in group 20 or above could double your premium. What I tend to notice is that new drivers often fall in love with a car’s looks or price tag without checking its insurance group first. That mistake can cost more than the car itself over the first year.
Where you park overnight also feeds into the price. A car kept on the street in a London postcode can add roughly 45% to your premium compared to the national average, according to Selectra. A garage or driveway reduces the risk of theft and vandalism, which insurers reward with a lower rate.
Common traps that cost new drivers money
Buying the car before checking the insurance quote
This is the most expensive mistake I see. A car that costs £2,000 to buy might cost £3,000 to insure if it sits in a high insurance group. Always get a quote for the specific car before you hand over any money. If the premium is too high, walk away and look at a lower-group model. The best tips for finding great value car insurance in the UK start with this single step.
Assuming third-party cover is the cheapest option
It’s a natural assumption — less cover should cost less money. But insurers see it differently. Drivers who buy Third Party Only are statistically more likely to claim, so the premium is often higher than a comprehensive policy for the same driver. Always compare both before deciding.
Fronting — listing a parent as the main driver
If you’re the primary user of the car but you list a parent as the main driver to get a lower premium, that’s insurance fraud. It’s called fronting, and insurers check for it. If they find out, they can void your policy, refuse to pay a claim, and you could face criminal prosecution. The savings aren’t worth the risk.
Letting your policy auto-renew without comparing
Loyalty doesn’t pay in car insurance. Since January 2022, FCA rules have banned insurers from charging existing customers more than new ones for the same policy, but that doesn’t mean your renewal price is the best available. Shopping around at renewal can still save you hundreds. Use a comparison site and check at least three or four quotes before accepting the renewal.
How to buy your first car insurance — the practical steps
Choose a car in insurance groups 1–10
Before you even look at cars, check the insurance group. Models like the Volkswagen up! (groups 1–3), Toyota Aygo (2–4), and Hyundai i10 (2–5) are consistently cheap to insure. A Ford Fiesta 1.0L sits in groups 3–7, and the Vauxhall Corsa 1.2L is in groups 2–8. These cars are also cheap to repair, which keeps premiums down year after year. If you’re buying used, a Garmin Dash Cam X310 can help protect your no-claims bonus by providing clear evidence in the event of an accident.
Get telematics insurance if you’re under 25
Telematics — also called black box insurance — tracks your speed, braking, cornering, and the time of day you drive. Safe driving earns you a higher score, which can lower your premium at renewal. For a 17-year-old, a telematics policy can bring the cost down from £2,600 to around £1,800–£2,000. Most policies give you a driving score out of 100, and some insurers offer rewards for good scores. The trade-off is that harsh braking or late-night driving can raise your premium or trigger warnings.
Add an experienced named driver
Adding a parent or older sibling as a named driver can reduce your premium. The insurer sees the car as shared with a lower-risk driver, which lowers the overall risk. But the named driver must genuinely use the car sometimes. If they never drive it, the insurer could treat it as fronting.
Increase your voluntary excess if you can afford it
Voluntary excess is the amount you agree to pay toward a claim before the insurer pays the rest. Increasing it from £100 to £500 can lower your premium noticeably. Just make sure you could actually afford to pay that amount if you had an accident. The total excess (voluntary plus compulsory) is what you’ll owe, so check the combined figure before you commit.
Pay annually instead of monthly
Monthly payments include interest, which adds up over the year. If you can pay the full annual premium upfront, you’ll avoid that extra cost. It’s not always possible, but if you can save up before buying the policy, it’s worth doing.
Keep the car secure
Where you park and how you secure the car affects your premium. A garage or driveway is better than on-street parking. Adding a steering wheel lock like the Stoplock Steering Wheel Lock can also reduce the risk of theft, which insurers factor into their pricing. A GPSBob Wired GPS Tracker adds another layer of security and may qualify for a discount with some insurers.
Build your no-claims discount from day one
Every year you go without making a claim, your no-claims discount grows. After one year, you’ll typically get a 30% discount. After five years, it can reach 60–70%. That’s the difference between paying £2,600 and £900 a year. Protecting your no-claims discount with a small additional premium can be worth it if you’re worried about a minor accident wiping out years of savings.
Frequently asked questions about first-time car insurance
Can I insure a car I don’t own? ▾
What happens if I drive without insurance? ▾
How many penalty points can a new driver get before losing their licence? ▾
Does telematics insurance track my location all the time? ▾
Can I remove a named driver later to lower my premium? ▾
Is it worth protecting my no-claims discount? ▾
Your first year sets the pattern for the next decade
The choices you make as a first-time buyer don’t just affect your first premium — they shape your insurance history. Every claim-free year builds a discount that compounds over time. A single at-fault claim in your first year can keep your premiums high for five years. That’s why it’s worth investing in a low-group car, a telematics policy, and good security from day one. The habits you build now — safe driving, smart car choices, annual shopping around — will save you thousands by the time you’re 25.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Beyond price: what UK drivers really need to consider when choosing car insurance.
Sources and Further Reading
Unlock discounts for safe driving with new app features — How telematics apps can reward good driving habits with lower premiums.
Essential car insurance tips for driving abroad in the UK — What your policy covers when you take your car outside the UK.
SaveCompare (2025). First-Time Car Insurance Guide. 🔗
MyMoneyComparison (2025). Car Insurance for New Drivers: UK Complete Guide. 🔗
Confused.com (2025). First-time car insurance. 🔗
Selectra (2026). What UK Car Insurance Costs and How It Works in 2026. 🔗
