If you’re a new young driver, here’s a heads up—you will most likely encounter high premiums with a Young Driver Insurance. Don’t worry, though, because you’re not being tricked or anything! 

Young Driver Insurance usually comes with high insurance costs because of the idea that young drivers—aged between 17 and 25 years—are usually less experienced in the road and are more likely to be involved in an accident. The high premium is meant to offset the high probability of accidents and more insurance claims.  

Insurance companies consider several “risk factors” when they calculate your insurance. That said, it’s smart to know what these factors are so that you can understand how they’ve arrived at your premium, or better yet, see how you can reduce it!   

1. Age

Insurance companies typically put higher premiums on younger drivers or those who have acquired their driver’s license only recently. The good news is that experience typically drives premium rates down, more so if you have not been involved in accidents or made insurance claims. So, after some time, you may want to get new insurance quotes and see a lower premium rate.

2. Track Record 

If you have been driving for some time now, insurance companies also take a look into your driving history. If you have not made any claims, been into any traffic accidents, or caught for traffic violations like speeding, you will most likely have a lower premium.

3. Neighbourhood

Insurance companies also consider other external factors when evaluating premium rates, such as crime rates, insurance claims and how many of those were fraudulent, and the number of uninsured drivers in the area. The higher these numbers are for your neighbourhood, the higher your premium rates could be. 

Additionally, car insurance for those living in busy cities with heavy traffic will cost more than for those who live by the countryside.

4. Lifestyle 

What you do for a living will greatly affect your risk factor, and consequently, your premium rate.  For example, those who hit the road more often or are involved in the delivery or transport business are thought to be more exposed to road incidents.

Your proximity to your workplace also affects premiums; usually, those nearer their workplace enjoy lower rates.

5. Security

Having better security measures, such as alarm systems and immobilizers for your car or having a secure parking space—not along the street—can also drive insurance premiums down as they deter theft and vandalism.

6. Car value 

Cars that are rarer and more expensive will be more costly to insure since it will be more expensive to replace or repair. Modifications to the aesthetics and engine performance will also drive premiums up since you will be adding value to the car itself.

7. Excess

Private car excess is the voluntary amount you agree to pay whenever a claim is made. The higher the excess you declare, the lower your premium will be because the insurance company will then have a lower payout.

8. Policy type 

The type of insurance policy you select naturally affects your premium rates. However, you should study your options carefully because most of the time, going with comprehensive coverage policies will save you more in the long run compared to cheaper deals. 


Young driver insurance will naturally be expensive, but you can reduce your premium by carefully examining what factors have been considered in the calculation. Additionally, it’s best to compare as many deals as you can to make sure you’re getting the coverage that’s right for you. 

If you need hassle-free excess protection in the UK, we’re the one to call! At Goodbye Excess, we know the risks of choosing a bigger voluntary excess for a lower premium, so we’re all about covering your excess for you! Get in touch with us today to learn more about our services.