Being a student is already expensive.
Throw in the sky-high cost of car insurance, and it can feel impossible to afford.
If you’re between 17 and 24, insurers classify you as high-risk, meaning your premiums can be two to three times higher than those of older drivers.
But high costs don’t mean you’re out of options. The type of insurance you choose, how you structure your policy, and even small adjustments to your coverage can make a significant difference.
In this guide, we’ll break down everything you need to know about student car insurance, from picking the right policy to cutting your premium without compromising on cover.
In this article:
- How much is car insurance for students?
- What type of insurance should students choose?
- How to find the cheapest car insurance as a student
- Is black box insurance worth it?
- Six common mistakes when choosing student car insurance
- Frequently asked questions
To find the best price on your car insurance, it’s important to use a price comparison tool.
How much is car insurance for students?
As a student, you’ve probably noticed that insurers don’t exactly roll out the red carpet for you. In fact, young students often pay significantly more for insurance than other age groups.
This is because young drivers are statistically riskier. Drivers aged 17–24 account for just 7% of licence holders but are involved in 24% of all serious accidents.
As a result, young drivers can pay around 2-3 times more for their car insurance compared to older drivers.
What type of insurance should students choose?
Not all car insurance is the same. Understanding what each policy covers helps you find the best balance between cost and coverage.
- Third-party only:The cheapest and most basic option, third-party only insurance covers damage or injury to other people and their vehicles, but not your own. Although appealingly cheap, it’s typically only sensible for very low-value vehicles.
- Third-party, fire and theft: This adds protection if your car is stolen or damaged by fire. It’s popular among students who have budget vehicles but still want basic protection from theft.
- Comprehensive: This is the highest level of cover. It protects your car, other vehicles, theft, fire, and accidental damage—perfect if you’re relying on your car frequently. While initially usually more expensive, comprehensive cover often provides the best overall value.
Tip: Most insurers today offer comprehensive cover that’s actually cheaper than third-party. Always double-check this—never assume third-party is automatically cheaper!
How to find the cheapest car insurance as a student
Getting cheap student car insurance can feel like a dark art, but there are genuinely effective ways to reduce your premium:
- Use a comparison tool: Tools such as Young Car Driver’s insurance comparison can help simplify your search and help you find the best possible price on your car insurance.
- Choose a sensible car: The car you choose dramatically affects your insurance costs. Small, low-powered cars in lower insurance groups (think Ford Fiesta or VW Polo) typically cost significantly less to insure.
- Pay annually if possible: Monthly payments can seem easier on your student budget, but annual payments often come with discounts of around 10%—saving you potentially hundreds per year.
- Add a named driver: Including an experienced, low-risk driver—such as a parent—can significantly cut costs. Just ensure they’re genuinely using the car occasionally, as insurers check this.
- Adjust your excess carefully: Choosing a higher voluntary excess lowers premiums. But set a sensible amount you can comfortably afford if you need to claim.
- Park securely: Off-road parking (garage or driveway) typically means lower premiums than street parking.
Is black box insurance worth it?
Black box (telematics) insurance involves fitting a small device into your car, tracking your driving habits. It sounds slightly invasive at first, but it genuinely helps young drivers secure much cheaper premiums by proving they’re responsible.
- Significant savings: Drivers under 25 save, on average, 30-40% with black box insurance (according to MoneySavingExpert in 2024).
- Promotes safer driving: It incentivises good habits by monitoring speed, braking, acceleration, and even when you drive. Plus, it can provide crucial evidence in accident disputes, potentially saving you headaches (and cash).
- More flexibility in 2025: Telematics has evolved. Now you have flexible policies that let you choose lower-mileage or off-peak driving discounts, giving you more tailored options than ever before.
Learn more: Black box insurance pros and cons: Is it worth it?
Six common mistakes when choosing student car insurance
- Be accurate with your estimated mileage. Lower mileage usually means lower costs. Don’t overestimate how much you’ll drive, but don’t lie about mileage either, as insurers can invalidate your policy if you significantly underestimate.
- Falling into the ‘fronting’ trap. It might seem like a harmless way to save money, but “fronting” is insurance fraud. This happens when a parent is listed as the main driver to lower premiums, even though you’re the one primarily using the car. Insurers actively look for this and will refuse claims if they catch it, leaving you to cover the costs of any accidents out of pocket.
- Using the wrong address. Your insurance price is based on where the car is kept most of the time. If you register it at your parents’ home but actually keep it at university, you risk invalidating your policy. Always be honest about where your car lives.
- Choosing the cheapest policy without checking coverage. A rock-bottom premium might look appealing, but what does it actually cover? Many basic policies strip out important benefits like courtesy cars, breakdown cover, and legal protection. If you need them later, you could end up paying far more in the long run.
- Skipping comprehensive cover. A lot of students assume third-party insurance is the best way to save money, but it’s not always true. Comprehensive cover often costs only slightly more and protects your own car too—not just other people’s. Even if you’re a careful driver, accidents happen, and without comprehensive insurance, you could be left with a hefty repair bill.
- Ignoring optional extras. Breakdown cover, legal protection, and courtesy cars might seem unnecessary when you’re trying to cut costs, but they can be lifesavers in an emergency. Many of these extras add only a small amount to your premium but can save you from expensive or stressful situations later.
A quick recap
Car insurance as a student is expensive, but manageable. By comparing carefully, opting for comprehensive or black box insurance, selecting the right car, and being truthful with insurers, you can significantly lower your annual costs.
The smartest route is often choosing comprehensive insurance with a black box policy, along with practical measures like adding experienced drivers and parking securely.
Ready to start saving? Dive deeper into our tailored advice, tips, and comparison tools at Young Car Driver’s dedicated student car insurance hub. Get insured smartly, then get back to enjoying student life without breaking the bank.
Frequently asked questions
Can mature students get cheaper insurance?
Typically yes, as insurers associate maturity with lower risk. Students over 25 usually enjoy more affordable premiums.
Should I use my parents’ address?
Always list the address where the car spends most of its time—usually your university accommodation—to avoid claims being rejected.
What about short-term car insurance for students?
Temporary or short-term insurance can help during holidays or for occasional use, but generally isn’t cost-effective for year-round driving.
Does part-time work affect my premiums?
Yes—your occupation can affect your insurance price. Always accurately describe your employment status.
Does student accommodation affect car insurance premiums?
Where you park your car significantly affects your premium, and as a student, this often means your university accommodation will have an impact. If you’re living in halls of residence or shared student flats, your postcode could influence your costs. Urban areas or regions with higher crime rates typically attract higher premiums.
What happens to your insurance if you take a gap year?
If you’re planning a gap year or a period abroad, consider the impact on your policy. Inform your insurer beforehand; they may pause or reduce your premiums if your car remains unused at home. Never assume your policy can simply lapse, always communicate clearly with your insurer to avoid accidentally voiding your cover.
