Car insurance for young drivers

If you thought your driving test was difficult, wait until you try and buy car insurance - that's when things could start to get really tricky.

The price of motor insurance is rising rapidly. A recent report calculated that the cost of cover has jumped 40% in a year, potentially pushing many motorists off the road.

The average car insurance premium is now about £900, but the average masks some big variations. Young driver's insurance premiums are typically the highest, often topping £2,000. To make matters worse, more than half of insurance companies simply refuse to cover teenage drivers.

Don't be tempted to drive without car insurance, though. The government estimates that 1.4m motorists do not have insurance cover, but they risk a fine of up to £5,000 and six to eight points on their licence.

And if you are the main driver or registered keeper of a car, do not insure the car in your parents' name and add yourself to the policy as a named driver. Known as 'fronting', this is a form of insurance fraud that will invalidate your policy and could lead to a charge of driving without car insurance.

Why are young driver car insurance premiums so high?

Car insurance for young drivers is disproportionately high compared to the national average because they are quite simply more risky. Motorists aged between 17 and 25 are responsible for one third of road fatalities in the UK. And one in five drivers is involved in a crash during the first 12 months behind the wheel. Statistics also show that young drivers are more likely to be the victim of theft, fire and vandalism resulting in insurance claims.

 How to find cheaper car insurance for young drivers

The average driver between the ages of 17 and 21 now stands to pay in excess of £2,000 for a car insurance policy, but there are several ways that young drivers can reduce the price of their car insurance premiums.A number of firms will fit a so-called 'black box' to your car to track your movements. It sounds a bit like 'Big Brother' but it can reduce young driver car insurance premiums because you will usually be rewarded if you drive a limited number of miles and if you avoid driving late at night, when most accidents are likely to occur.

• Buy a sensible car. Every new car is assigned to a car insurance group - and the lower the group, the lower the likely premium. So, it will be cheaper to insure a Fiat Punto than an Audi TT. You can find details of the car insurance groups on the website of the Association of British Insurers .
• Don't modify your car. Insurers don't like boy - or girl - racers and modifications such as turbo charging, rally lights, nitrous oxide kits will send your premium soaring. 

•  Consider taking the Driving Standards Agency's Pass Plus course, which gives extra tuition on night, motorway and inner city driving. You can take the course any time, although it is aimed at new drivers within the first year of passing their test. The course is made up of six modules and takes at least six hours. There is also a fee of about £150, but it is often worth the money as drivers who have successfully completed the course can earn discounts on their motor insurance of up to 35%. 
•  Shop around and compare young driver car insurance quotes. But make sure you compare like with like. A car insurance policy might be cheap because it does not offer many benefits.
•  Don't assume third party insurance is the cheapest option. Many consumers purchasing car insurance for young drivers assume that third party cover will be the best value option as it is usually the cheapest car insurance you can buy. If damage another vehicle while driving it will cover the cost of the repair to that vehicle, but any damage to your car won't be covered so you'll have to pay for any repairs yourself. Fully comprehensive car insurance on the other hand, protects your car as well as any other vehicles.
  
  However, third party car insurance is popular with young drivers as they assume it is the cheapest option due to the fact it offers less protection. But because claim statistics are one of the factors insurers take into consideration when calculating premiums, the cost of third party cover can actually prove more expensive than fully comp due to the fact that a higher proportion of drivers are involved in accidents and make a claim. It therefore important to get quotes for third party; third party, fire and theft, and fully comprehensive car insurance and weigh up which will be most cost effective.
• If you are driving your parents' car, it will be cheaper in the short term to add your name to their policy. However, if you take out your own insurance cover, you can start to build up a no claims discount, which will lead to even greater savings in the future. The NCD can be valuable, reducing the cost of cover by a third after one year. You can even add an older, more experienced family member with a clean driving record to your own policy and it could cut the cost.
• You stand a better chance of obtaining cheap car insurance for young drivers if you fit additional, approved security devices, such as an alarm or immobiliser system. If you can, keep your car in a locked garage when not in use, or off the street if possible. 
• If you are prepared to pay a bigger voluntary excess, you might pay a lower insurance premium. But remember that the excess is the amount you contribute towards any claim, so it should be affordable. 

• It can be convenient to spread the cost of your car insurance over monthly installments, but it is also more expensive because you will be charged extra. So try and pay up front, even if you have to ask your parents for a loan.
  
  For more ideas on how you could obtain cheap young drivers car insurance quotes visit our money saving tips page; and if you are between the ages of 17 and 19 be sure to check out our guide to car insurance for teenagers.