24 July 2025 Concept Car
The world of car insurance can be a minefield, especially when combined with shopping for a car as a new driver.
Today, we’re taking a look at why car insurance for young drivers is so expensive, what can be done to reduce the premiums, and how car finance for young drivers can help.
If you’ve just passed your test and feel excited to get on the roads, you’ve probably noticed how much car insurance is if you’re under 25.
But why?
Insurers base premiums on the level of risk associated with that driver. And, statistically, young drivers are more likely to be involved in a car accident, due to less experience on the road, higher rates of speeding, and more claims on average.
Other reasons include:
The younger you are, the higher the premiums will be. And, if you have little to no experience owning a car, you’re seen as a higher risk.
The majority of young drivers’ first car will be something on the cheaper end of the scale. Being older and more likely to need repairs comes with a cost in the form of a higher insurance premium.
This affects every driver, but if you’re parking your car outside a student house or in a city area with a high population or high traffic volume, these factors can all contribute to increased premiums.
If you’ve never driven before, it can be exciting getting behind the wheel. But a higher average annual mileage increases the risk of being in a car accident.
Having been involved in no accidents or traffic violations, or having no points on your license, can all help your premiums.
No-claims discounts show insurers you’re a sensible and trusted driver. If you’re a young driver, the chances of having years of no-claims are slim to none.
If you’re a named driver on a vehicle with someone who has years of driving experience, no-claims history, and no penalty points, your insurance payments will come down.
| Insurance Type | What is it? |
| Third-Party Only | This is the minimum legal cover available, and it insures you against damage to other vehicles |
| Third-Party, Fire and Theft | Added protection for stolen cars or those damaged by fire. |
| Fully Comprehensive | The highest level of coverage, covering your vehicle, injury or damage to the people or property involved in an accident, and for cars damaged by fire or stolen. |
| Telematics/Black Box | Installed into your car, and monitoring driving habits for lower premiums year on year. This can come with speed and time restrictions. |
Your first year of car insurance will probably be one of the highest, but there are ways you can show insurers you’re less of a risk compared to other young drivers to bring your premiums down. These include:
Driving a car without insurance is illegal in the UK – and most other countries, for that matter.
If you are caught driving with no insurance, the possible consequences include:
If you’re a young driver and looking for more ways to keep the cost as low as possible, without skimping on quality, you’re in the right place.
Here at Concept Car Credit, we offer car finance for young drivers that doesn’t discriminate against experience or credit score. As long as you can afford the monthly payments, you can choose a used car from our wide selection.
Take a look at our online showroom and apply online to get started.
24 July 2025 Concept Car
