Young-driver insurance can be expensive, but the cheapest headline quote is not always the best or safest policy.
Compare the full cover, excess, telematics rules, payment cost and vehicle details before you buy.
Insurance prices are based on many risk factors, including:
- your age and driving experience;
- your postcode;
- the vehicle;
- where it is kept;
- annual mileage;
- how it will be used;
- occupation;
- claims and convictions;
- additional drivers;
- the type of cover;
- voluntary excess; and
- whether telematics is used.
No website, instructor or comparison tool can guarantee the price you will receive.
Use the Insurance Checklist
Compare First-Car Choices
Important: This guide provides general information, not regulated insurance advice. Read the insurer’s current terms and answer every question accurately.
Insurance is a legal requirement
You must have insurance that covers the way you use the vehicle.
Third-party insurance is the minimum legal level, but it does not normally cover damage to your own car.
Other common levels include:
- third party only;
- third party, fire and theft; and
- comprehensive cover.
Do not assume third-party-only cover will always produce the lowest quote. Compare equivalent quotations carefully.
Check the official vehicle-insurance rules
Learner-driver insurance
If you practise in a family member’s or friend’s car, you need insurance covering you as a learner driver in that vehicle.
This could involve:
- being added temporarily to the owner’s policy;
- being added for a longer period;
- buying a separate learner policy; or
- another arrangement specifically approved by the insurer.
Check:
- whether claims affect the owner’s no-claims discount;
- the permitted supervising drivers;
- the vehicle covered;
- the policy dates;
- the excess;
- where and when you may drive;
- whether the practical driving test is covered; and
- what happens immediately after passing.
Insurance after passing
A learner policy may stop covering you when you pass the practical test.
Do not drive home or continue driving alone unless suitable full-licence insurance is active.
Before your test, ask the provider:
- whether the policy ends immediately after passing;
- whether temporary post-test cover applies;
- how the policy must be updated;
- whether a new quotation is required; and
- when full-licence cover begins.
What is black-box insurance?
Black-box or telematics insurance uses a device, mobile application or vehicle data to assess aspects of driving.
Depending on the provider, it may record:
- speed;
- acceleration;
- braking;
- cornering;
- journey times;
- mileage;
- location;
- phone use; and
- driving patterns.
Telematics can produce a competitive quotation for some drivers, but you must understand the conditions.
Check telematics restrictions
Before choosing a black-box policy, check:
- whether night driving affects the score;
- whether any curfew applies;
- how speed is assessed;
- how harsh braking is measured;
- whether another driver affects your score;
- whether the app needs continuous permissions;
- how faults or missing data are handled;
- whether poor scores can increase costs;
- whether cover can be cancelled;
- device installation costs;
- device-removal charges;
- data-retention terms; and
- what happens when you change phone or vehicle.
Choose the car before buying it
Insurance can make an apparently affordable car expensive to own.
Before purchasing a vehicle:
- get quotations using the exact registration where possible;
- compare several models;
- check engine size and power;
- consider repair costs;
- check parts availability;
- consider theft risk;
- check safety and security features;
- avoid undeclared modifications;
- compare manual and automatic quotations; and
- calculate the full annual running cost.
Read the Best First Cars guide
Insurance groups
Insurance groups can provide a useful starting point, but they do not determine your final price alone.
Insurers may also consider:
- repair costs;
- parts prices;
- performance;
- security;
- claim frequency;
- the driver profile;
- location;
- mileage; and
- how the vehicle is used.
Two vehicles in similar groups may still produce very different quotations.
Add an experienced named driver honestly
Adding an experienced driver may change the quotation.
The named driver must genuinely use the vehicle as described.
Always state correctly:
- who owns the vehicle;
- who keeps it;
- who drives it most often;
- who uses it for work or commuting;
- where it is normally parked; and
- the expected mileage for each driver.
Avoid insurance fronting
Fronting happens where someone is declared as the main driver to obtain a lower price even though another person is really the main user.
For example, a parent should not be named as the main driver where the car is primarily owned, kept and driven by their son or daughter.
Fronting can lead to:
- a claim being rejected;
- the policy being cancelled;
- difficulty obtaining future insurance;
- additional charges;
- investigation for fraud; and
- the driver being treated as uninsured.
Answer the main-driver question accurately.
Understand compulsory and voluntary excess
The excess is the amount you may need to contribute towards a claim.
Your total contribution can involve:
- a compulsory excess set by the insurer;
- a young-driver excess;
- a voluntary excess selected by you; and
- other policy-specific excesses.
Do not choose a very high voluntary excess simply to reduce the premium unless you could realistically afford the combined amount after an accident.
Annual versus monthly payments
Paying monthly may make the cost easier to manage, but it can involve credit charges or interest.
Compare:
- the annual premium;
- the deposit;
- the monthly instalments;
- the total amount payable;
- the interest rate;
- missed-payment fees;
- cancellation charges; and
- whether finance is subject to a credit check.
Compare the total cost, not only the monthly figure.
Estimate mileage accurately
Consider:
- work or education journeys;
- weekend travel;
- regular family visits;
- holidays;
- social driving;
- shared use;
- motorway journeys; and
- changes expected during the policy year.
Do not deliberately understate mileage to obtain a cheaper quotation.
Select the correct class of use
Policies may distinguish between:
- social, domestic and pleasure use;
- commuting to one permanent workplace;
- business use;
- carriage of goods;
- delivery work; and
- commercial use.
Tell the insurer exactly how the car will be used. Ordinary commuting cover may not include travelling between work locations or making deliveries.
Occupation details
Give an accurate occupation and employment status.
Where more than one truthful description could apply, ask the insurer which description is appropriate.
Do not select a different occupation simply because an online quotation is cheaper.
Where the car is kept
State accurately whether the vehicle is normally kept:
- on a driveway;
- in a garage;
- on the road;
- in a shared car park;
- at a different address overnight; or
- between more than one regular location.
Do not use a different postcode to obtain a lower quotation.
Vehicle modifications
Tell the insurer about modifications, including changes to:
- wheels;
- suspension;
- engine performance;
- exhaust;
- bodywork;
- lighting;
- interior;
- audio equipment;
- security systems; and
- vehicle software.
Ask whether factory options need to be declared.
Do not assume you can drive other cars
“Driving other cars” cover is not included automatically with every comprehensive policy.
Where included, it may:
- apply only to certain ages;
- provide third-party cover only;
- exclude vehicles owned by household members;
- require the other vehicle to be insured;
- exclude regular use;
- exclude business use; or
- apply only in emergencies.
Read the certificate and policy wording before driving another vehicle.
Check the courtesy-car conditions
A courtesy car may only be available:
- after an insured claim;
- while an approved repairer works on your vehicle;
- where the car is repairable;
- subject to age restrictions;
- subject to availability;
- for a limited period; or
- after an additional premium.
Do not assume it provides a replacement after theft or a total loss.
Compare several routes
Consider quotations from:
- comparison websites;
- direct insurers;
- specialist young-driver providers;
- insurance brokers;
- telematics providers;
- family or multi-car policies; and
- providers not listed on every comparison site.
Use identical and accurate information for each comparison.
Check the insurer and intermediary
Before buying:
- confirm who the insurer is;
- check who administers the policy;
- check who handles claims;
- read cancellation terms;
- check amendment fees;
- review complaints information;
- check the firm’s regulatory status; and
- keep copies of all documents.
Check the Financial Services Register
Renewal prices
Do not allow a policy to renew without checking:
- the new premium;
- changes to the excess;
- changes to cover;
- telemetry conditions;
- mileage assumptions;
- named drivers;
- vehicle information;
- payment charges; and
- alternative quotations.
Tell the insurer about changes
Changes may include:
- passing the driving test;
- changing address;
- changing job;
- increasing mileage;
- changing vehicle use;
- adding or removing drivers;
- modifying the car;
- changing where the vehicle is kept;
- penalty points;
- claims; and
- medical changes where relevant.
Ask the insurer what must be disclosed and when.
Young Driver Insurance FAQs
Is third-party insurance always cheapest?
No. Compare third-party, third-party fire and theft, and comprehensive quotations using the same accurate details.
What is black-box insurance?
It uses a device, app or vehicle data to assess driving behaviour. Conditions vary between providers.
Can a parent be the main driver?
Only where the parent genuinely is the main user. Declaring the wrong main driver can amount to fronting.
Does learner insurance continue after passing?
Not necessarily. Check before the practical test and arrange suitable full-licence cover before driving alone.
Should I increase the voluntary excess?
Only to an amount you could realistically afford in addition to compulsory and young-driver excesses.
Is paying monthly more expensive?
It can be because monthly instalments may involve credit charges or interest. Compare the total amount payable.
Do I need to declare modifications?
Yes. Ask the insurer what counts as a modification and disclose changes accurately.
Can Fast Pass recommend a specific policy?
This page provides general guidance rather than regulated personal insurance advice.
Compare the complete policy, not only the cheapest number
Accurate information, affordable excesses and suitable cover are more important than obtaining a low quote that does not match how the car is actually used.
