Why Car Insurance Costs So Much When You’ve Just Passed, and Legal Ways to Bring It Down

A first car insurance quote can come as a shock. This guide is for people who have just passed, or are about to, and their parents. It explains why insurers charge new drivers so much and sets out the legal ways to bring the price down, along with the one popular “trick” that is actually fraud. The insurance points apply across the UK; Pass Plus is a GOV.UK scheme for Great Britain.

Why new drivers pay more

The Association of British Insurers (ABI) says the main reason is risk: young drivers are far more likely to be involved in accidents than drivers aged 25 and over, so they are more likely to claim.

The official crash figures back this up:

• Great Britain: the Department for Transport’s Road Safety Strategy (January 2026) says drivers aged 17 to 24 are only 6% of licence holders but were involved in 24% of fatal and serious collisions in 2024.
• Northern Ireland: the Department for Infrastructure says drivers aged 17 to 23 accounted for 24% of fatal or serious collisions in 2024 while holding 8% of licences.

Age is only one factor. The ABI lists others that insurers use, including your occupation, your claims history, the number of collisions and level of vehicle crime where you live, the type of vehicle, where it is kept overnight and whether it has an alarm or immobiliser. On top of the premium, motor insurance carries 12% Insurance Premium Tax, according to the ABI.

Choose the car with insurance in mind

The ABI says cars are given an insurance group score from 1 to 50, based on the price of the vehicle, its safety features, the cost of replacement parts and its engine power. Cars at the lower end are cheaper to insure.

The ABI also notes that modifications and aftermarket rims can make a car more expensive to insure, and that some insurers offer discounts for better security, such as an immobiliser or wheel locks, though these offers vary.

Telematics (black box) policies

Telematics policies, also called “black box” or “pay how you drive” insurance, set the price partly on how the car is actually driven. The ABI explains how they work:

• What is measured: most insurers look at miles driven, the types of road used, the time of day, and speed and braking patterns.
• The device: it may be built into the car, a small box fitted by the insurer, or a smartphone app.
• How it affects the price: some policies adjust the premium during the year; others reward safe driving at renewal or with extras such as a higher mileage allowance.
• Not always cheaper: drivers judged high-risk may lose discounts, face a premium increase or a one-off charge, or in the most serious cases have the policy cancelled.
• Restrictions: some policies charge a fixed fee if the car is driven outside set hours.
• Other drivers count: most policies assess how the car is driven overall, including by named drivers.
• Hidden costs: there may be a charge to fit or remove a black box, or to recover its cost if you cancel early.

Excess, mileage and shopping around

The ABI’s advice on reducing the cost of motor insurance includes:

• Shop around: not every insurer appears on price comparison websites, so search directly too.
• Voluntary excess: raising it could reduce your premium, but you pay more up front if you claim.
• Mileage: if you have other ways of getting around, you could reduce your declared annual mileage. Make sure it is an honest estimate.

Honesty matters throughout. Under the Consumer Insurance (Disclosure and Representations) Act 2012, which applies across the UK, you have a duty to take reasonable care not to give the insurer false information. A cheaper price based on wrong answers can leave you without cover when you need it.

Named drivers: legal, and where fronting begins

Being added as a named driver on a parent’s policy is legal, and the ABI says a named driver gets the same level of cover as the main driver. But the ABI also says this is only appropriate if the named driver is not the main user or the owner of the car.

Fronting is when a parent or other older person claims to be the main user of a car that a younger person actually drives most of the time. The ABI calls it a form of insurance fraud and says it is illegal and could lead to criminal convictions for those involved. If an insurer discovers fronting, the policy could be declared invalid and the people involved could have to pay the costs of an accident themselves. They are also likely to find insurance harder to get and more expensive in future.

For the insurance rules covered in the theory test, see the documents topic.

Build a clean record, and consider Pass Plus

The ABI says building up a history of a clean driving record and no claims can make a significant difference at renewal. The reverse is also true: the Highway Code (GB) warns that the cost of insurance is likely to rise considerably after a conviction for a serious driving offence. For new drivers there is an extra reason to drive carefully, because 6 penalty points within two years of passing means losing your licence, in both Great Britain and Northern Ireland.

Pass Plus (GOV.UK): Pass Plus is a practical course run through the Driver and Vehicle Standards Agency (DVSA). GOV.UK says it:

• takes at least 6 hours with a Pass Plus registered approved driving instructor
• covers driving in town, in all weathers, on rural roads, at night, on dual carriageways and on motorways
• has no test; you are assessed throughout and must reach the required standard in all modules
• needs a certificate from DVSA if you want an insurance discount

GOV.UK is clear that a discount is not guaranteed: the amount depends on the insurer, and not all insurers offer Pass Plus discounts. It also says to check with insurers if you passed more than a year ago, and that you might be able to put a discount on hold for up to 2 years if you do not have a car yet.

Still wondering?

Will Pass Plus definitely make my insurance cheaper? No. GOV.UK says the discount depends on the insurer and that not all insurers offer one. Ask before you book if the discount is your main reason.

Can my parent insure the car and put me on as a named driver? Yes, as long as the details are true. If you are really the main driver, listing your parent as the main driver is fronting, which the ABI describes as illegal insurance fraud.

Will a black box stop me driving at night? It depends on the policy. The ABI says some telematics policies charge a fixed fee for driving outside set hours, while others have no restrictions.

Key takeaways

New drivers pay more because, as a group, they crash and claim more. The legal ways to bring the price down are choosing a low insurance group car, comparing telematics policies carefully, setting a realistic excess and mileage, building a clean record and asking insurers about Pass Plus. Fronting is not a shortcut: it is fraud and can leave you with no valid cover at all.

This is general information, not financial or legal advice.

Sources

• Association of British Insurers, “Age and motor insurance” (abi.org.uk)
• Association of British Insurers, “Reducing the cost of motor insurance” (abi.org.uk)
• Association of British Insurers, “Pay as you drive insurance” (abi.org.uk)
• Association of British Insurers, “Motor insurance” (abi.org.uk)
• Association of British Insurers, “Buying motor insurance” (abi.org.uk)
• Association of British Insurers, “Understand the rising cost of motor insurance” (abi.org.uk)
• GOV.UK, “Pass Plus” (gov.uk)
• GOV.UK, “The Highway Code: Annex 5. Penalties” (gov.uk)
• Department for Transport, “Road safety strategy” (gov.uk)
• Department for Infrastructure, “Graduated Driver Licensing FAQs” (infrastructure-ni.gov.uk)
• nidirect, “New drivers” (nidirect.gov.uk)
• legislation.gov.uk, “Consumer Insurance (Disclosure and Representations) Act 2012” (legislation.gov.uk)