Is your son or daughter ready to take out their first car insurance policy? Find out how it all works with this quick guide from our car insurance expert, Rebecca Goodman
When your child passes their driving test it’s a huge ‘proud parent’ moment. It also means no more ferrying-them around as your job as an unpaid taxi driver is finally over!
But while you’re watching your not-so-little-one take their next leap of independence, you might also be hit with a hefty bill for things like a car, insurance, breakdown cover, and road tax.
In London, Quotezone says young drivers (17-24) pay an average of £ 3,229 for car insurance, compared to around £1,240 overall. The good news? Options like specialized young driver insurance policies or safe-driving rewards can help bring those costs down.
Here we look at everything you need to know to help your child pick an affordable policy that’s right for them:
Does your child need car insurance?
If your child is driving a car in the UK then, legally, they need car insurance. This could be their own policy, or they could be added as a named driver on your policy. Either way – they won’t be able to drive anywhere until it’s sorted.
Types of young driver car insurance
Car insurance for young drivers works the same as cover for older people.
They can choose their preferred cover level from the following three options:
- Third-Party: this is the most basic form of car insurance, covering only costs for a third party, so they’ll have to pay out for costs for their own car.
- Third-Party, Fire and Theft: this is one step up from Third-Party as it also covers claims related to theft of the driver’s car or damage by fire.
- Comprehensive: this option provides the most cover and, surprisingly, is usually the cheapest option for most drivers. It covers costs related to the driver and their car as well as anyone else involved in an accident.
Young drivers can also benefit from specific policies aimed at them. These often use black box technology, or telematics as it’s also known, to monitor how a car is being driven. If your son or daughter demonstrates that they’re consistently driving the car well, they’ll be rewarded with cheaper premiums. But it’s worth remembering that an insurer can also increase the price if the driver isn’t driving as safely as they should be.
Can I add my child to my policy?
Unless your child has bought their own car, they’re probably going to be borrowing yours for a while. This can be a blessing and a curse as it means the cost of their insurance should be lower, but at the same time you’ll have to share your motor with them (and the petrol).
In most cases, your child can be added to your policy as a named driver. This means they’re driving the car, but you’re still the main driver and can be found behind the wheel most of the time. This can bring down the cost of insurance as the risk is lowered (when compared to a young driver being the only person driving a car).
How to choose the best insurance for a young driver
There are lots of car insurers and policies to choose from, so many that it can feel overwhelming when you first start to look. The most important things to remember are to compare prices and always check the small print.
Cost is a major consideration when it comes to insurance, but it’s worth looking at other factors too such as checking exactly what’s covered, which add-ons are included (and which aren’t), and how much you might need to pay if you make a claim (the excess).
Most young drivers (56%) pay their insurance in monthly instalments, according to Citizens Advice, yet overall, this is the more expensive method as interest is usually added to monthly payments. If you can afford a lump sum, it’s always cheaper to buy a policy by paying in one go.
