Find Affordable Car Insurance for Young Drivers Under £1000!

If you just bought your first car, you may be struggling to find cheap car insurance. It’s really hard to find affordable car insurance for young drivers under £1000 in the UK. So, what can you do about it?

Well, the good news is, there are several practical ways to keep car insurance costs for new drivers down without sacrificing essential cover. In this guide, we’ll share 6 tips to help you cheap car insurance under £1000.

So, let’s get started!

Why Is Car Insurance So Expensive for Young Drivers?

Insurance companies calculate risk, and young drivers fall into the high-risk category. That’s because with less time behind the wheel, there’s a greater chance of mistakes, accidents, and insurance claims. 

In fact, statistics show drivers under 25 are more likely to be involved in collisions. As a result, insurers charge more to cover that risk. On top of that, some young drivers may choose fast cars or drive at riskier times, like late at night.

It might seem unfair, but from the insurer’s view, it’s all about probability. Thankfully, there are smart ways to bring costs down, even as a new driver.

6 Tips to Find Cheap Car Insurance for Young Drivers Under £1000

Here are 6 practical tips for young drivers who are struggling to find cheap car insurance in the UK:

1. Compare quotes from multiple insurers

Don’t settle for the first quote that comes your way. Insurance prices can vary a lot between providers, even for the same type of cover. That’s why it’s important to shop around. You can use comparison websites to get a wide range of quotes in one go. Some insurers also offer exclusive deals on their own sites, so check those too.

Comparing offers gives you a better chance of finding an insurance policy that fits your budget and gets you under that £1000 mark.

2. Consider black box (telematics) insurance

Sometimes black box insurance (also referred to as telematics) is a smart choice for young drivers. It involves fitting a small device in your car that tracks how you drive, things like speed, braking, and how smoothly you handle corners. This device works just like a dash cam.

If you drive safely, insurers often reward you with lower premiums. Therefore, it’s a great way to prove you’re a responsible driver, especially if you don’t have much experience yet.

Over time, good driving habits can lead to even more savings. Still, even if you apply for black box insurance as a new driver, chances are you’ll find a deal under £1000.

3. Add a named experienced driver

The next tip is to add an experienced driver, like a parent or older sibling, to your insurance policy. Choosing for named driver insurance type can lower your premium. Insurers feel more confident knowing someone with more driving experience also drives the car. They are more likely to keep you insurance premium under a thousand pounds this way.

Just make sure they’re genuinely going to drive the car from time to time. Don’t list someone as the main driver if they’re not, that’s called fronting, and it’s illegal in the UK.

4. Increase your voluntary excess

Choosing a higher voluntary excess can also help lower your insurance premium. It can be particularly helpful when you’re trying to stay under £1000.

However, it’s important to choose an amount you can comfortably pay if you ever need to make a claim. So, while it might be tempting to go high to save money now, make sure you’re prepared for the cost later if your car gets into a roadside accident.

5. Pay annually to save 

Paying for your car insurance monthly might seem convenient, but it usually comes with hidden costs. Insurers often add interest or administrative fees to monthly payments, making them more expensive in the long run. 

On the other hand, if you can afford to pay your premium all at once, you’ll likely save a significant amount of money. By choosing to pay annually, you avoid those extra charges and are most likely to keep your overall insurance costs under £1000. 

6. Limit mileage and avoid modifications

Lastly, limit your mileage. Driving fewer miles can help lower your insurance premium and most likely keep it under £1000. Insurance companies see lower mileage as a sign of less time on the road, which means less risk. 

You must also know that modifications like custom paint jobs can also increase your insurance premium. While they might make your car look cool, modifications also make it more expensive to insure. It’s best to keep your car in stock condition to avoid unnecessary insurance costs. 

7 Cheapest Cars to Insure for New Drivers

Insurance companies are going to charge higher premium if you are a young driver. You can do nothing about it. However, what you can do is choose your first car wisely.

Some cars are cheaper to insure for new drivers because they’re smaller, safer, and fall into lower insurance groups in the UK. These cars are great options for young drivers looking to save on premiums.

You can choose one from the following to keep your insurance costs under £1000.

• Hyundai i10
• Volkswagen Up
• Skoda Fabia
• Kia Picanto
• Fiat Punto
• Toyota Aygo X
• Seat Ibiza

These models are not only budget-friendly but also come with a reputation for reliability. Since they have lower repair costs and better safety ratings, insurance providers often offer lower rates. 

If you already own a car that falls in higher insurance groups, you should consider replacing it. Sell your current car using our hassle-free service. Exchange My Car connects you with specialist car buyers in the UK.

Compare multiple instant offers and sell your car for the highest offer you can get from our network. All our partnered buyers offer free car collection and fast payment!

What Type of Insurance Do Young Drivers Need?

Next up, the type of insurance cover you choose is also going to affect how much you pay. There are three main types, and there’s no thumb rule when it comes to choosing among these.

Depending upon other factors any one option can be more suitable for you. Therefore, it’s smart to compare and see which gives you the best value and keeps your insurance costs under £1000:

i. Comprehensive Car Insurance

A comprehensive car insurance gives you the highest level of protection. It covers you, your car, and other drivers, even if the accident is your fault. Sometimes, this option can be cheaper than basic policies. Even if it slightly pricier, it still might be a more sound option. So, it’s always worth checking.

ii. Third party, Fire and Theft

This type of insurance policy covers the damage you cause to others. Plus, it also cover your car if it’s stolen or catches fire. It’s a mid-tier option, but not always cheaper.

iii. Third party only

This is the minimum legal cover. It only pays for damage to other people’s property or vehicles, not your own. It is most likely to offer you the cheapest insurance premiums. You can easily secure a third party only car insurance for less than £1000.

Frequently Asked Questions (FAQs)

1. How to get cheaper car insurance for young drivers under £1000?

To find cheaper car insurance for young driver under £1000, you should start by comparing quotes. Sometimes choosing a black box policy and adding an experienced driver to your policy may also help lower the costs.

Similarly, you should choose a car in a lower insurance group to keep insurance costs low. Lastly, drive fewer miles each year and avoid car modifications to reduce your premium.

2. Can young drivers be insured on their parents’ policy?

Yes, young drivers can be added to their parents’ insurance policy as a named driver. This is a common way for young drivers to lower their premiums. It may also help them build up a no-claims bonus, which can reduce future costs.

However, keep in mind that the parent’s policy might be impacted if the young driver makes a claim. Therefore, it’s important to check with the insurer to make sure if you can avail this option and to understand the terms.

3. What is the cheapest car insurance for young drivers?

Young drivers usually find third-party, fire, and theft insurance the cheapest option. This type covers damage you cause to other people’s cars. It also protects your car if someone steals it or if it catches fire. However, it doesn’t cover damage to your own car in an accident you cause.

That’s the trade-off, it costs less but offers limited protection. Many drivers choose it for older or low-value cars. Just make sure the cover suits your needs. Also, compare it with comprehensive insurance to find the best fit.

4. Should young drivers pick comprehensive insurance?

Comprehensive insurance offers more coverage and protection than third-party options, including damage to your own car. However, it’s generally more expensive than basic insurance. If you’re driving a new or valuable car, comprehensive insurance might be a good choice, but it’s important to balance cost and coverage.

5. What extras can I get with young car insurance?

Many car insurance policies offer optional extras or add-ons that you can include in your coverage. These extras can enhance your protection and provide additional benefits, but it’s important to evaluate which ones are right for you.

• Courtesy Car: Check the details of what type of car you’ll get and how long you can use it. You might also be able to upgrade this cover if the provided car doesn’t meet your needs.
• Breakdown Policy: Be mindful of the coverage, as many basic breakdown policies don’t include home recovery or onward travel. You may find standalone breakdown cover more cost-effective.
• Protected No-Claims Discount: This protects your discount even if you need to make a claim. It’s worth considering if you’re likely to remain claim-free in the future.
  

While these extras can be helpful, make sure you’re not paying for something you don’t need. Always compare the cost with and without these add-ons to find the best deal for your needs.

Final Thoughts: Car Insurance for Young Drivers Under £1000

Finding affordable car insurance as a young driver under £1000 is possible with the right approach. 

By comparing quotes and choosing the correct policy type, you can significantly lower your premiums. Additionally, be mindful of policy extras, avoid unnecessary modifications, and stick to low-mileage driving and you’re most likely to keep your insurance premiums under £1000.

Always keep in mind that small adjustments, like paying annually or adding a named driver, can also make a big difference. However, it might all come down to the car you’re driving. If you are driving a car from higher insurance groups, you’re less likely to find a policy under £1000. 

The only thing you can do in this case is to change to something smaller that falls under the lower insurance groups. Sell any car with Exchange My Car and find a new one with lower insurance costs. 

For more information on car selling, buying, ownership, and maintenance in the UK, be sure to explore our blogs section.