Car Insurance For 17-Year-Olds

If you’re 17 and have passed your driving test, you’ll want to make sure you get the best rate on your car insurance. Statistically, teenagers prove to be the most high-risk drivers, prompting insurers to charge them the highest premiums.

But there are ways you can find the best insurance for you and minimise the cost of expensive premiums. Here’s all you need to know about car insurance as a 17-year-old driver.

What type of cover should I get?

As a 17-year-old you are offered the same types of car insurance as older drivers:

• Third-party only This type of insurance covers you against the cost of damage caused to another person, their car and their property should you get into an accident for which you are to blame (this includes your passengers).
  
  However, you will not be covered for damage to you or your own vehicle. This is the minimum level of cover you are required to have by law. Remember that it’s illegal to drive with no insurance

• Third-party, fire and theft (TPFT) This type of insurance covers damage caused to another person, their car and their property should you cause an accident (including your passengers). It will also cover the costs if your car is stolen or damaged by fire

• Fully comprehensive This type of car insurance covers damage caused to another person, their car and other property as well as your own repairs and medical costs should you be responsible for an accident.

Statistically, drivers who take out third-party only or TPFT policies are at higher risk of claiming, which has caused insurers to bump up premiums (the regular fee paid for insurance) on those policies, so don’t assume that fully comprehensive will always be the most expensive.

What affects my premiums?

Car insurers want to know about you (your age, occupation, address, and driving history, for example), your car (its make and model), and how you intend to use it (such as for occasional social use, or for a daily commute at peak times of day).

All this information will determine how much risk you carry and how much premium you will be charged as a result.

How can I get cheaper car insurance?

Insurers charge 17-year-olds higher premiums for being new to the road and a proven higher risk. But there are ways you can cut the costs:

choose your car strategically – insurers group cars based on their size, performance and safety, among other factors. The fastest or flashiest can be the most expensive to insure

keep your car safe – the safer your car is, the better. Consider getting a car with enhanced safety and security devices, such as automatic emergency braking and a tracking device. Also, keep your car parked off the road, in a garage or on a driveway, if you can.

pay more in voluntary excess – your excess is an amount you pay towards the cost of any claim you make. Contributing more in excess suggests will be rewarded with a lower premium

avoid modifying your car – modifying your car essentially changes the car specification. The modified parts could be hard to find, in the event they ever need replacing. Also, making your car speedier can increase risk, which can also bump up your premiums

telematics or black box insurance – if you have a black box installed in your car or an app on your phone, you may be offered lower premiums in return for proven responsible driving.

What is a no-claims discount?

A no-claims discount can reduce your premiums if you don’t make a claim during the 12-month insurance period – and the discount increases each year you don’t make a claim.

The full NCD available varies according to the insurer, but can reach up to 70% after five years without a claim.

Can I drive on someone else’s car insurance?

You will be able to drive someone else’s car if your insurance includes a DOC (drive other cars) clause, but insurers are unlikely to offer this to drivers under the age of 25.

Alternatively, you can be added as a named driver to someone else’s policy, but bear in mind that their insurance will be affected by any claims you make, including their NCD.

Another option is to take out temporary car insurance of typically up to 28 days. Insurers will state a lower and upper age limit. The cover can be set up in a matter of minutes, won’t affect the car owner’s own insurance policy and can be purchased multiple times.

What other costs do I need to consider?

In addition to car insurance, there are several other costs you’ll need to budget for:

• car tax (officially known as vehicle excise duty) – car tax must be paid on an annual basis for all cars used and parked on UK roads. The amount payable depends on the model of your car and when it was registered

• MOT you will need to pay for a compulsory, annual MOT (Ministry of Transport) test for a car that’s more than three years old to make sure it is safe to drive and environmentally-friendly. Reckon on paying £30 – £60, depending on the garage

• Servicing you should get your car checked every now and again to make sure everything is in working order and to spot problems early. Servicing is more thorough than an MOT and costs more, so you could face a bill for several hundred pounds

• Minor repairs you may not want to claim on your insurance for minor repairs, perhaps so as not to lose your NCD or stump up your excess, in which case you will have to pay for them upfront.