Published by AXA November 2021
Learning to drive is a rite of passage for many teenagers. It opens up a new world of freedom, fun, and independence.
For those who don’t live in towns and cities it’s also a necessity. Over half of teenagers with a full driving licence use their car to get to work.
But it’s an unavoidable fact that insurance for teens is expensive. We can’t pretend otherwise.
So why is insurance for teenagers so expensive?
The sad fact is that teenagers are more likely to have accidents.
Teens aged 17-24 are estimated to cost £2.9 billion in accidents, compared with £14.7 billion across the board. That’s almost 20%, yet they make up just 7% of drivers overall.
And it isn’t just down to inexperience:
Young drivers are more likely to take risks when overtaking or speeding
1 in 5 crash within a year of passing their test
Half admit to using their mobile at the wheel
Over a quarter of fatal accidents are caused by young drivers who are over the legal alcohol limit.
Though there is a silver lining. Since the year 2000 the number of young drivers aged 17-24 killed in serious accidents has fallen year on year.
Still, the charity brake.org recommends putting off the age at which they start to drive, encouraging walking, cycling and public transport.
How long does it take for teen premiums to go down?
One fact that screams from all the government statistics, is that when it comes to deaths among young drivers, 75% are caused by young men aged 17-24.
That’s why premiums drop dramatically at 25. So they need to build up their no claims discount as they approach 25, when hopefully their insurance won’t be as expensive. After then the price drops a little each year till age 60.
There are other ways to reduce the price:
Add the younger driver to your car insurance policy
Increase the excess (the amount the driver is happy to pay until the insurance kicks in)
Pay yearly instead of monthly (to avoid interest)
Adding a young driver to your policy can lower the cost significantly
By adding their name to your policy the drop in price can be as much as £500.
They’re benefitting from the fact you are, statistically speaking, (thanks to your age and driving history), a safer driver.
Charity brake also recommend supervised driving
Accidents are often caused when teenagers bow to peer pressure. They’re simply more likely to have accidents when they have young people in the car, not when they’re ferrying older adults.
The solution therefore is to dissuade them from giving lifts to friends. And for a responsible older adult to sit with them while they drive.
Stick to daytime driving
Records also show that most crashes happen late at night and early in the morning due to:
Tiredness - experts estimate that tiredness accounts for between 10% and 20% of all road crashes worldwide
Over-confidence - when there isn’t much traffic around they assume the risk of accidents is much lower than it is
Consuming drink and/or drugs
So if you’re sharing a vehicle or insurance you could reduce use of the car at these times.
AXA can help
If you’re looking for a quote for your teenager, whether it’s to add them to your existing policy, or for a fresh quote, we can help.
Years ago it used to be cheaper for young adults to get third party fire and theft insurance. But most insurers noticed that riskier drivers chose this option. As such, comprehensive insurance tends to be better value. To compare your options and get a quote, feel free to visit our site where you’ll get a full breakdown of both.
And for tips on how to pass your test and drive safely please check out our dedicated site for younger drivers:
For each year they don’t claim on your policy we offer a no claims discount. For 5 years without a claim the discount is 75%
Accidents happen. If they have one, or if someone makes a claim against them, they won’t lose their full discount
They’ll also be covered to travel to Europe with their car for up to 90 days.
Whatever you need, AXA is here to help.