What is new driver car insurance?

Getting your first car and driving on your own is exciting, but it’s important to make sure you have suitable insurance in place first. It’s a legal requirement for one thing, but also choosing the right insurance could prove to be a huge help should you ever need to claim.

Premiums are of course higher for new drivers, but there are ways to lower your insurance costs. From careful driving incentives to pay-per-mile policies, by exploring different options and comparing quotes, it’s possible to find more affordable cover.

The right policy means you’re covered if the unexpected happens, so you can drive more confidently while building your experience behind the wheel. With a little planning, getting insured as a new driver can be straightforward and give you the freedom to enjoy every mile.

Do I need new driver car insurance?

Once you’ve passed your driving test, you’ll need insurance in place before you can hit the road. It’s a legal requirement for anyone driving on public roads in the UK.

The minimum cover you must have is third-party insurance, with another option being third-party fire & theft. For maximum cover, you can go for fully comprehensive insurance.

But don’t just think of insurance as being a legal must-have. It’s a fact that new drivers are more likely to have an accident, so one day you could be thankful you have insurance to cover most of the cost of putting things right.

What are my options for new driver car insurance?

As a new driver, you’ll find that you can get insurance designed to fit around your driving habits. An annual policy gives you consistent cover if you drive regularly, such as driving to and from work each day. But if you drive less often, a pay-as-you-go policy is where you only pay for the miles you drive.

Something else to look into is black box insurance. This is where a small device or app monitors your driving habits, rewarding safe driving with lower premiums.

Another option is to be a named driver on a family member’s or friend’s policy. This may reduce the cost of your first insurance, but remember that the main driver must still be the one who uses the car most often.

What does new driver car insurance cover?

When you’re a new driver, it helps to know what your insurance actually protects. The policies available fall into three main types, each offering different levels of cover. From basic protection for other people and their property, to full coverage for your own car as well, understanding the options will help you choose the right policy for your needs and budget.

Third-party insurance

This is the most basic type of cover and protects you if you cause damage to other people or their property. It won’t cover any damage to your own car, but it meets the legal requirement for driving on UK roads.

Third-party, fire and theft

This level of cover includes everything third-party insurance offers, plus protection if your car is damaged by fire or stolen. It’s a step up in security, giving you extra peace of mind.

Fully comprehensive insurance

This is the most complete option, covering damage to your own car as well as other people’s property. It also includes fire and theft protection, and in some cases can offer additional benefits like roadside assistance or windscreen cover.

Of course, the specifics of your insurance will vary depending on the insurer and the level of cover you pick. Comparing policies is the best way to make sure you get the protection that suits you.

How much does new driver car insurance cost?

Data varies on the average cost of new driver insurance, but the RAC reported in August 2025 that the average annual premium for drivers aged 18 to 20 is ‘is in the region of £1,000’ - and it can be much higher. Certainly, as a new driver you’re unfortunately likely to face car insurance premiums well above the UK average of around £562 (ABI data, second quarter of 2025).

Exactly how much your premium will be will depend on a number of factors, including these:

  • Your age and experience: Younger or newly qualified drivers often pay higher premiums.

  • Your job: Some jobs mean more time on the road or in higher-risk areas, which can bump up your premium. Be accurate when you list your occupation, as it can make a difference.

  • Amount of excess: Choosing a higher voluntary excess can lower your premium, but it means paying more yourself if you make a claim.

  • Type of car: Insurers look at how expensive, powerful and desirable your car is, plus how safe and reliable they think it will be. Bigger engines usually mean higher costs, and cars that are often targeted by thieves can raise your premium too.

  • Your postcode: Urban areas with higher traffic or theft rates typically have higher premiums, in addition to living in an area prone to flooding.

  • Modifications: Expensive speakers and in-car entertainment systems can make your car more attractive to thieves, which may increase your insurance costs. Performance upgrades can also bump up premiums.

  • How often you drive: Using your car daily, especially for commuting, usually costs more than just driving occasionally.

  • Car insurance group: Cars are placed into insurance groups (1–50) based on factors like repair costs, safety features, and performance. The higher the group, the more you’ll usually pay.

How to get cheaper car insurance for new drivers

Insurance for new drivers can certainly be pricey, but there are plenty of ways to make it more manageable. A few smart choices now can save you money and help you get on the road. Here are some tips on ways you may be able to bring down the cost of insurance:

  • Compare quotes: Shopping around with different providers can help you find a better deal - and that’s true every time your policy comes up for renewal.

  • Pick a smaller car: Choosing a car with a modest engine and standard features usually means a lower premium.

  • Try black box insurance: A telematics device (black box) or app tracks how safely you drive. Prove you’re careful and you could get a cheaper renewal.

  • Add an experienced driver: Including a parent or other experienced motorist on your policy can reduce costs. Just make sure the person who drives most is listed as the main driver.

  • Be a named driver on someone else’s car: This can be a cheaper way to get insured, but make sure you’re not the main driver as that can mean the policy is invalid (this is called ‘fronting’).

  • Skip the modifications: Extras like expensive after-market alloys and spoilers might look great but they can push up your premium.

  • Boost your security: Parking overnight in a secure place and adding an immobiliser or alarm makes your car less appealing to thieves and could help bring down the cost.

  • Drive fewer miles: The less time you spend on the road, the lower your risk in the eyes of insurers – and that can mean cheaper cover.

  • Look at pay-as-you-go cover: If you only drive occasionally, arranging pay-as-you-go insurance, often either pay-per-mile or pay-per-hour cover, could work out cheaper.

  • Pay annually: Paying your premium on an annual premium once a year often works out cheaper in the long run than paying monthly.

  • Consider a higher excess: Offering to pay a bit more if you need to claim can lower your premium – just make sure you can afford the excess.

  • Take an advanced driving course: Completing something like Pass Plus shows insurers you are a safer driver and could lead to a discount.

Car insurance guides

Answering your questions about new driver car insurance

Page updated on 9th October 2025, Reviewed by Richard Groom