Car Insurance for 18 Year Olds
As a newly qualified 18 year old driver, you are, unfortunately, likely to face some of the highest premiums on the market when you come to insure your new car.
In this short guide we’ll explain why this is, as well as how to avoid sky high prices wherever you can.
What kinds of car insurance are available for 18 year olds?
So you’ve just turned 18, you’ve recently passed your driving test and got yourself a car, now welcome to premiums, excess and everything else that the world of car insurance has to offer.
There are three basic categories into which car insurance policies fall, each with an increasing level of cover and, as a general rule, an increasing price.
First is simple third party cover, which will cover you against any damage you might inflict on anyone else or their vehicle, but not for any damage to your own.
Next up is third party, fire and theft cover which, as the name would suggest, adds to the above cover against fire damage to and theft of your own vehicle and its contents.
The highest level of cover you can get is fully comprehensive which will cover you against all of the above, as well as for any accidental damage to your own car.
As a general rule, fully comprehensive policies tend to cost more, but they also often end up being much better value for money. While you may save on premiums by opting for basic third party cover, you could potentially get stung by high repair costs, negating any money you saved in the first place.
All policies will come with optional extras like breakdown cover or a courtesy car, but these will also come will additional costs, so you should work out exactly what you think you’ll need before signing up.
Why is car insurance so expensive for 18 year olds?
Car insurance companies work out the cost of the premiums they offer on a risk reward basis: the higher the risk of the policy holder getting into an accident (as judged by the provider), the higher the cost of the policy.
Here is where it gets unfortunate for 18 year old drivers: statistics show that younger drivers are significantly more likely to be involved in accidents than older drivers.
Indeed a third of all fatalities on the road are cause by drivers aged between 17 and 25.
This means that on average, 18 year old drivers can expect to pay more than drivers over the age of 25, who will have also had more time to develop a strong no claims discount – one of the key ways in which to reduce the cost of your insurance policy.
Is cheap car insurance a pipe dream?
Luckily, there are ways to avoid scarily high premiums, starting by buying a car with a small engine and always keeping it safe and secure, using anti-theft devices like steering wheel locks.
But by far the simplest way to make sure you find the best car insurance deals as an 18 year old is to shop around online. Use a comparison service like ours to save yourself time, effort and money, and guarantee that you get the cover you need at a cost you want.