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Looking for the cheapest car insurance in the UK as a new driver? This guide explains the best budget-friendly insurers, tips to reduce premiums, what affects your price, and FAQs for first-time drivers.
Introduction
Car insurance for new drivers in the UK is usually expensive due to limited driving experience and a higher risk category. But with the right strategy—and by choosing insurers that offer competitive rates—you can significantly lower your premium.
This guide covers the cheapest car insurance options for new drivers, how to get cheaper quotes, and the best policies worth considering.
Why Car Insurance Is Expensive for New Drivers
New drivers typically pay more because:
- They have less driving experience
- They fall into a higher-risk category
- They are more likely to make claims within the first year
- They usually drive small but high-demand cars, which affect risk scoring
Understanding these factors helps you know what to adjust to lower your costs.
Cheapest Types of Car Insurance for New Drivers
1. Third-Party, Fire & Theft (TPFT)
Often cheaper than fully comprehensive but not always. Covers damage to others, plus your car if stolen or damaged by fire.
2. Telematics Insurance (Black Box Insurance)
This is one of the cheapest options for new drivers. A black box monitors your driving and rewards safe habits with cheaper premiums.
3. Pay-Per-Mile Insurance
Great for new drivers who don’t drive frequently. You pay a base rate plus a few pence per mile.
Cheapest Car Insurance Companies for New Drivers (Popular Options)
While prices vary based on age, car type, and postcode, these insurers are known for providing budget-friendly policies for new drivers:
1. Hastings Direct
Affordable for young and new drivers with flexible coverage.
2. Admiral LittleBox (Telematics)
One of the best telematics policies for beginners.
3. Direct Line
Often offers exclusive deals when buying directly from their website.
4. Churchill Insurance
Known for competitive new-driver rates and optional black box.
5. LV= (Liverpool Victoria)
Good for drivers who want lower excess and strong customer service.
6. AA Black Box Insurance
Great for reducing prices through safe driving rewards.
Top Tips to Get the Cheapest Car Insurance in the UK as a New Driver
1. Choose a Car in a Low Insurance Group
Cars in groups 1–10, like Toyota Aygo, Hyundai i10, and Vauxhall Corsa, cost less to insure.
2. Add a Named Driver
Adding an experienced driver (like a parent) can reduce your premium—just avoid “fronting,” which is illegal.
3. Take a Telematics Policy
This often cuts prices by 20–40% for new drivers.
4. Pay Annually Instead of Monthly
Monthly payments usually include interest.
5. Increase Your Voluntary Excess
Only if you can afford it in case of a claim.
6. Park in a Safe Location
A garage or driveway can significantly reduce your quote.
7. Compare Quotes from Multiple Sites
Use comparison platforms like Compare the Market, GoCompare, and MoneySuperMarket.
Best Cars That Are Cheapest to Insure for New Drivers
- Toyota Aygo
- Hyundai i10
- Ford Fiesta (lower trims)
- Volkswagen Up
- Kia Picanto
- Vauxhall Corsa
- Skoda Fabia
These models fall into low-risk insurance groups and are beginner friendly.
FAQs About Cheap Car Insurance for New Drivers in the UK
1. What is the cheapest type of car insurance for new drivers?
Telematics (black box) insurance is usually the cheapest because it tracks your driving and rewards safe habits.
2. What age is considered a new driver?
Anyone who has recently passed their driving test—usually between 17 and 24—is considered a new driver by insurers.
3. Can new drivers get fully comprehensive insurance?
Yes. Surprisingly, some fully comprehensive policies can be cheaper than third-party. Always compare both.
4. Does the type of car affect the cost?
Yes. Smaller, low-engine cars in low insurance groups are always cheaper to insure.
5. How long does it take for premiums to drop?
After one year of claim-free driving, premiums usually decrease as you build your No-Claims Discount.
6. Is black box insurance worth it?
Yes, especially for new drivers. It can significantly reduce your premium if you drive safely.
