Driving is an increasingly pricey activity for young people. Simply gaining a full driving license in the UK will cost several hundred pounds, that’s before you think of the additional costs involved in buying, running and insuring a car.
The cost of petrol has been going up for some time now and it’s no secret that car insurance costs, particularly for young people, have been rising in recent years. The recent ruling by the European Court of Justice prohibiting insurance companies from considering gender when setting premiums and pricing is going to have an extra upward pressure on the cost of motor insurance for young people.
So there’s never been a better time to stop and think about what you can do to keep your insurance premiums as low as possible. Our brief guide should help.
The first basic rule is to decide on a car in a low insurance category. There is no sense in acquiring an old Porsche Boxster as your first car. It might look nice on the driveway, but that’s where it will have to stay unless you have very big pockets to afford the insurance premiums. Instead opt for something cheap and cheerful. Small is beautiful when it comes to your first car, it’s the most important rule.
OK so you’ve had to settle for an old Renault Clio and it’s not the world’s coolest car. Never mind, resist the temptation to modify it. Non-standard bits and pieces have to be declared to your insurers (or you may invalidate your policy) and there’s a very good chance that any modifications, even cosmetic ones, will add cost to your premium.
Elect for the highest excess you can sensibly afford. Shifting the balance of your policy like this (so that you pay a larger upfront cost in the event of a claim) is a simple and easy way to bring down your premiums. It lowers the risk for your insurance company and they like that, just make sure you have the cash in reserve just in case the worst should happen.
Talk to a specialist insurer. As with anything in life, you’re not likely to get expert service from someone who’s not an expert so take your time and look for a company who specialise in insurance for young drivers. There are some new, innovative insurance policies coming on the market at the moment that could make all the difference. Some insurers are now working with the most recent satellite tracking technology to provide effective, flexible insurance solutions for young drivers. In simple terms, the insurance company arrange for a GPS enabled tracking device to be fitted to your car. This device transmits a signal to the insurance company and if the car is driven outside agreed times (usually 11pm – 5am), the company imposes an additional fee. Simple and effective. It keeps young drivers off the roads at the most hazardous times and reduces the costs all round.
It’s not an easy time to be a young driver but with a few sensible measures and some expert advice, it doesn’t have to break the bank.

Doug Walker Dip CII is General Manager of Academy Insurance Services Ltd. Academy is an independent insurance broker specialising in niche insurance markets such as buy to let property insurance and cheap young driver insurance.