How New Drivers Can Choose a Car That Costs Less to Insure

This is general information, not advice about which policy is right for you.

New drivers often pay higher premiums, and the car you choose can make a difference. In short: a modestly powered, mid-value car that is cheap to repair, has good standard security and has not been modified will usually be easier to insure than a powerful, expensive or modified one. The car is only part of the picture, though. Your age, where you live, how you use the car and how you drive all count too. The surest way to know what a car will cost to insure is to get quotes for that exact car before you buy it.

How to choose a car that costs less to insure: 7 steps

Set your budget including insurance. For a new driver, insurance can be a large share of the cost of running a car, so work it out before you fall for a car, not after.
Shortlist modest, everyday models. Look for lower power outputs rather than sporty versions of the same model.
Check the exact version. Insurance groups and ratings can differ between trim levels and engines of the same model, so check the specific car you are considering.
Get quotes before you buy. Use the registration number or exact model details to get real quotes for that car. This is the only reliable way to know the price for you.
Ask about changes made by previous owners. Ask the seller what has been changed on the car. Answer the insurer’s questions accurately, and check with the insurer if you are unsure whether a change counts as a modification.
Think about security. Good standard security makes a car less attractive to thieves. Park somewhere safe where you can.
Consider a black box policy. Some insurers offer telematics cover, which monitors how you drive. Allianz says safe drivers could benefit from lower premiums. Check the policy rules, as some limit when or how far you can drive.

Why new drivers pay more

Insurers price risk, and inexperience is a risk. According to the Association of British Insurers (ABI), drivers aged 17 to 24 make up 7% of UK licence holders but are involved in 24% of all fatal collisions.

That does not mean every new driver pays the same. Insurers look at the driver, the car and how it will be used, so two 18-year-olds can be quoted very different prices.

What it is about a car that affects the price

When an insurer looks at the car itself, it is mainly asking two questions: how likely is a claim, and how much would that claim cost? The features below feed into both.

Power and performance

Allianz explains that it considers a car’s power (brake horsepower), and that powerful cars typically cost more to insure because of higher repair costs and greater risk.

Repair costs and parts

How easy and expensive a car is to repair matters. Allianz lists how easily repair parts can be sourced as one of the things it considers. Thatcham Research’s Vehicle Risk Rating, described below, assesses how cars are damaged in a crash and how easy and costly they are to repair.

Security and safety

A car that is harder to steal and better at avoiding crashes is a lower risk. Security and safety (including crash-avoidance systems) are both part of the industry ratings for new cars. The RAC notes that some additions, such as immobilisers and parking sensors, may lower premiums.

Modifications

Modifications can push prices up. The RAC says most modifications that change the look or performance of a car will increase the cost of cover, and that failing to disclose one could leave your insurance invalid. If you are buying a used car, ask the seller about changes made by previous owners. Answer the insurer’s questions accurately, and check with the insurer if you are unsure whether a change counts as a modification.

Insurance groups and Vehicle Risk Ratings: useful, but not the whole story

For decades, cars in the UK have been placed in insurance groups from 1 to 50, running broadly from lower to higher vehicle risk. Thatcham Research’s newer Vehicle Risk Rating (VRR) assesses cars in five areas: performance, damageability, repairability, safety and security, each on a 1 to 99 scale. Our guide to car insurance groups and the Vehicle Risk Rating explains which cars use which system.

A low group or a low rating is a good sign, but it is not proof that a car will be cheap for you to insure. What Car? explains that insurers use the group alongside a driver’s personal information and claims history to work out a premium. Each insurer also sets its own prices, so the same car can be quoted very differently by different insurers.

What else affects your premium

Choosing the right car helps, but these factors, set out by Allianz, also play a big part:

Your age and experience. Young and newly qualified drivers pay more.
Your postcode. Every postcode has its own insurance rating, influenced by things like crime and accident risk.
Mileage and use. The more you drive, the more likely you are to be involved in an accident.
Named drivers. Adding a more experienced driver can sometimes help a younger driver’s premium, as long as you are honestly the main driver.
Your cover and excess. The level of cover and the excess you choose also affect the price. Our guide on how to cut your car insurance explains these, along with no-claims discounts and renewal.

Mistakes to avoid

Fronting

Fronting is when someone, often a parent, is named as the main driver of a car that a young driver actually uses most. Aviva explains that it is illegal and classed as insurance fraud. If it is discovered, the policy may be treated as if it never existed, claims may not be paid, and those involved could face a criminal record and find it much harder to get insurance in future.

Assuming you are covered

GOV.UK warns that even if a car is insured, you can be penalised if you are not correctly insured to drive it. The police can give a fixed penalty of £300 and 6 penalty points for driving without insurance. For a new driver this matters even more: under GOV.UK rules, your licence is cancelled if you get 6 or more points within 2 years of passing your test, which means applying for a new provisional licence and passing both tests again. Our guide to car insurance for new drivers covers your first policy and renewals.

Frequently asked questions

Is the car with the lowest insurance group always the cheapest to insure?

No. A low group or rating suggests a lower risk, but your premium also depends on your age, experience, postcode, mileage, claims history and the insurer’s own pricing. Always get quotes for the exact car.

Does a less powerful car always mean cheaper insurance?

Not always, but lower-powered cars usually cost less to insure. Repair costs, security, value and the specific model all play a part too.

What about modifications made by a previous owner?

Ask the seller about changes made by previous owners. Answer the insurer’s questions accurately, and check with the insurer if you are unsure whether a change counts as a modification. The RAC warns that failing to disclose a modification can invalidate your insurance.

Can I put my parent down as the main driver to save money?

Only if they genuinely drive the car most. If you are really the main driver, that is fronting, which is insurance fraud.

Sources: ABI: Age and motor insurance · Allianz: How is my car insurance premium calculated? · What Car?: Insurance groups and VRR explained · Thatcham Research: Vehicle Risk Rating · RAC: Car modifications · RAC: Car insurance scams and frauds · Aviva: Car insurance fronting · GOV.UK: Driving without insurance · GOV.UK: Penalty points for new drivers