Car Insurance 101 for First Time Drivers

Getting your first car is an exciting experience but it can also be stressful! Whether you are looking on the forecourts or browsing online for your first vehicle, it is easy to get overwhelmed with new information.

One of the primary barriers for younger people when buying a car is the cost of insurance. When combined with your monthly finance payments, the budget you had in mind could soon become unaffordable. 

We have put together a guide so you can see what makes an impact on your insurance quotes and which cars come out on top for keeping your insurance costs low. 

1. Age & Driving Experience

Drivers under the age of 25 and those over 70 may face higher insurance premiums as they are statistically more likely to get into an accident when driving and therefore more likely to make a claim on their insurance. To help combat this, many young drivers choose to add a telematics device fitted to their vehicle. This allows their driving to be monitored and can reduce your insurance costs.

2. Your Location

Where you live, work and keep your car parked down to the postcode matters. More traffic, crime rates in urban areas, and local accident statistics generally result in higher premiums as opposed to quieter rural areas. 

3. Vehicle Modifications

Less applicable when you finance a vehicle, (financed vehicles are not allowed to have modifications without obtaining permission from your finance provider) but modifying your vehicle can make repairs more expensive or your vehicle more desirable to thieves and therefore more likely to need to make a claim on your insurance. 

Security modifications, such as an approved alarm or telematics devices can help reduce costs. 

4. Vehicle Make & Model

The make and model of your vehicle is a crucial factor in your insurance costs. Generally, vehicles that have a higher market value are more costly to repair due to imported parts and complex technology. They are also more likely to be stolen as well as typically being higher performance with powerful engines that can be associated with faster driving. 

All vehicles in the UK are given an insurance group which will determine if your vehicle is cheaper to insure or more costly. We have highlighted some popular vehicles below which could be more cost-effective.  

5. Occupation

Your occupation is considered by insurance companies as they will assess how long you are spending on the road and different driving patterns that could be associated with this, such as if you typically drive in the daytime or night.  

It is important to choose the job title that most accurately describes what you do. Your policy could be invalid if the details you give are incorrect. 

Low Insurance Group Cars for Young Drivers

In the UK there are 50 car insurance groups, and each vehicle will be assigned a group based on the cars features, value and typically cost of repairs. Cars within the lower insurance groups (Groups 1-10) will typically be cheaper to cover. 

Here are our top 10 cars that have a lower insurance group and therefore may be a good option for young drivers. 

• Hyundai i10 (Group 1-10)
• Volkswagen Polo (Group 1-5)
• Ford Fiesta (Group 5-10)
• Vauxhall Corsa (Group 1-10)
• Toyota Aygo (Group 2-9)
• Renault Clio (Group 1-10)
• SEAT Ibiza (Group 1-8)
• Nissan Micra (Group 1-12)
• Fiat 500 (Group 2-15)
• Kia Rio (Group 3-8)

These are just a guide and things like the exact model, trim, engine size, fuel type and other factors can all impact the insurance group they fall into.  

Choosing the right vehicle for you can make a big difference to your first car insurance costs. By understanding your monthly budget and the insurance groups of the vehicles you are considering, you can shop smarter and reduce the likelihood of increased costs.

If you’re thinking about buying a new car, you can apply online today, and your Car Buying Expert will be able to help you find a car that fits your budget. You can also browse cars in your account area.