Insurance for new drivers over 25

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By Crispin Bateman
Updated on Friday 4 December 2020

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The bane of every new driver’s car-owning experience – insurance. As someone only recently passed your driving test, you have no experience or proof of skill on the road and that makes you a huge risk for insurance companies. Massive premiums (sometimes beyond the cost of the car itself!) and a feeling of distrust can follow – thankfully, we at Compare UK Quotes know a thing or two about cheap new driver insurance in the UK and are here to help.

How much is car insurance for an over 25-year old?

Let’s begin with the good news. You are a new driver, so you don’t have any points on your licence and hopefully you’ll keep it that way. Having a clean licence can often be worth more than any amount of no-claims discount, or years of experience.

You are also over 25, which is one of the age-bracket jumps and takes you away from the teeth-grinding levels of insurance and into a bracket of more reasonable premium costs.

How much does your insurance go down when you turn 26?

The RAC suggest that the average annual premium for a 26-year old is a little over £500. Unfortunately, our real-world surveying suggests it could be a lot higher – closer to an average of £700 and with extra interest charges on top of that if you choose to pay monthly rather than fronting the entire annual amount in one go. None the less, it’s a lot better than the >£1000 estimates that you will be seeing if you are 18!

Age plays a huge factor in insurance. Car insurance is calculated based on several risk factors for the insurer, and the fact is that older drivers tend to be more sensible on the road, have less accidents and, ultimately, cost the insurance companies less money. The average car insurance for new drivers over 30 drops again to £426, and cheap car insurance for a first-time driver over 40 can be half that of a 26-year old.

What can I do to keep down the cost of new driver car insurance?

Getting your new driver insurance costs down is all about lowering the risk factors for the insurers, whether that’s by showing them what a great driver you are, or through doing everything you can to keep your vehicle safe from thieves. Your insurance premium is directly tied to your level of risk and insurers will use any data they can to determine that risk, including your profession, home location, and of course – your age.

Prove your skill – get black box car insurance

Black box car insurance is perfect for a 26-year old new driver. It involves fitting a tracking and monitoring device to your car which relays information about your driving in real time to your insurance company.

If it all sounds a bit ‘big brother’, that’s because it is. There’s definitely a feeling for some that there’s a little too much ‘being watched’ to be healthy – but when you are a new driver trying to prove your worth and lower your insurance premiums, then being watched is exactly what you are after.

Showing your insurance company that you are a safe and considerate driver, who doesn’t go street racing at night, is a good thing. You quickly build up a record of good driving and your premiums drop to match your personal driving ability rather than a calculated figure based on the average of people the same age and profession as you.

For more about black box car insurance, please read our articles on the subject.

Be sensible about your first car

It’s very tempting to go all out with a flashy car, but do you really need to, and do you want to pay for the insurance? Quite aside from the cost of a luxury car, and the likely lack of fuel economy, your insurance will be significantly affected by the value of your own vehicle.

Try to keep your first car choice to a sensible level – look at small hatchbacks rather than sleek sports cars, and you might be able to still stomach your insurance premium.

Consider further tests

Joining the Institute of Advanced Motorists and passing their advanced driving course can help bring down your insurance costs. As a slightly older new driver, the IAM are far more relevant than one of the Pass Plus course designed for 18-year olds. It should be noted that neither course guarantees a drop in your insurance costs and both are focused more on the skills you learn than any financial benefit.

Pick the right insurance level

Car insurance comes in three main varieties – third-party, third-party fire and theft (TPFT) and fully comprehensive.

  • Third party covers just the costs for other people you affect in an accident. It provides no financial support for you or your car and is the legal minimum insurance required to drive on UK roads.

  • TPFT includes everything above but adds cover for you if your car is stolen or damaged by fire.

  • Fully comprehensive insurance covers you in addition to the third-party. While you will have to pay an excess in any accident situation, the difference between this and your personal costs will all be covered by your insurance company.

Of them all, third-party is assumed to be the cheapest, though this isn’t always the case as some insurers see a desire to have fully comprehensive insurers another proof that you are a reliable driver.

You should also choose your level of use.

  • Social, domestic and pleasure (sometimes called simply ‘social’) covers you for your general life – popping to the shops, visiting family etc. It does not necessarily cover commuting to work.

  • Social and commuting covers the above plus commuting to a single place of work. You should always check with your insurer if you have commuting cover if it is relevant.

  • Business use cover includes the above but adds driving while at work – going to clients or training sites etc. It does not cover using your vehicle as part of your business (for example, as a courier).

  • Commercial use cover encompasses business use, plus provides full insurance if you use your car as an integral part of your business (taxi driver, delivery driver etc.)

There are plenty of additions available as part of your insurance, from breakdown cover to courtesy car inclusions and more. If you are trying to keep costs down, avoid unnecessary additions!

Never lie

Above all, never lie on an insurance application. Finding you have invalid insurance at a critical time because you were a little loose with the truth to save a few pounds initially can be very costly – and it is a criminal offense.

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