There’s so much excitement after passing your driving test, but this can quickly be dampened by the number of costs involved in driving independently. From buying a car to tax and insurance and the basic running costs of fuel and maintenance, there’s so much to prepare yourself for.
In this handy guide, we’ll go through the costs any new or young driver faces – and offer top tips on how to save money along the way to driving independence.
Why is it so expensive to be a new driver?
Insurance companies will view young drivers as higher risk and more likely to have accidents than older, more experienced drivers. This is reflected in the price of policies. It’s frustrating after paying out for your lessons, tests and car but there is a valid reason for the price of new and young driver insurance.
- According to Confused.com’s Price Index (15 January, 2025), 17-year-olds are paying an average of £2,404 for their annual insurance policy.
Choose the right car
We all have a dream car but when it comes to buying your first one, it needs to be within your budget. Whether you’re looking for a runaround that gets you from A to B or a second-hand car with a few dents and scratches as you prepare to get used to life on the road, there are ways you can save extra money.
- Pick a smaller engine
- Choose a car with a lower vehicle risk rating
- Check the fuel efficiency
- Avoid any modifications
How much is insurance for a new driver?
As mentioned, the initial price of annual insurance can be quite high. There are ways you can save on this:
- Shop around – Don’t go with the first quote you get. Be truthful about your annual mileage and explore a few options. Use a price comparison tool for annual quotes and look into both comprehensive and third-party options. Comprehensive can often work out cheaper.
- Buy Black Box insurance – Another option to bring down the price of your annual policy is telematics insurance. This is a policy where insurers track the way you drive through a GPS system or via your phone. You’ll then calculate your premium based on how you drive.
- Add an older or more experienced named driver to your policy – Another option for lowering your premium is to add someone else, who has been driving for a few years, to your policy. It’s very important you still drive the car the majority of the time. If they did, this would be fronting. An illegal practice that could potentially leave you with your policy being voided a criminal record.
- Increase your voluntary excess – If you can afford to, you could increase the amount you’re prepared to pay if you do make a claim.
- Pay for an annual policy – There are often discounts if you pay for your year’s policy outright, rather than on a monthly basis.
- Avoid any add-ons – There are often appealing additions to your policy, but if you want to save money, you should avoid these and just pay for your basic policy.
- Take an advanced driving course – Advanced driving courses aim to build up your confidence and skills. They’re practical courses that focus on observation, different weather and various traffic conditions. Confused.com data suggests they could make your insurance premium 15% cheaper. IAM Roadsmart, Pass Plus and AA Qualified Driver lessons are just some of the courses available.
- Borrow a parent’s car – One way of saving money is to avoid buying a car and borrowing a parent’s car as and when you need. Temporary car insurance allows you to do just this.
New driver temporary insurance
Temporary car insurance is an option for all young drivers, especially if you’re not going to be driving on a daily basis. With Tempcover, you can take out a policy from one hour to 28 days, meaning you only pay for the time you need. Fully comprehensive and flexible, this stand-alone policy also doesn’t affect any existing no claims policy, so your parents can rest assured their discount will still apply when it comes to their renewal.
Drive smart
While it might be tempting to test the limits of your car, if you want it to last you should take your time. Drive safely and at a steady speed, avoiding idling and sticking to speed limits. This will help you avoid unnecessary and unwanted fines and penalty points.
There are also ways you can save while driving about. Search for the cheapest petrol stations and car parks or free parking ahead of your journey. The government plans to introduce a fuel checker by the end of 2025, which will make this easier. You could also car share when needed and split the cost of petrol if you’re going with a group.
Avoid misfuelling (a mistake the RAC suggests around 150,000 Brits make annually) and check out our list of other offences you may be unaware of to avoid more unexpected fines.
When it’s time for MOT and servicing, it’s also worth shopping around. Many garages will provide discounts on this maintenance, especially if you book early enough.
One more thing you can do is consider the price vs public transport. Sometimes taking a train, coach or bus may work out cheaper, depending on where you want to go.
Maintain the car
Learn the basics of car maintenance to avoid unnecessary wear and tear and any nasty surprises the next time you take your car to the garage. You could use the FLOWER method to master these:
- Fuel – Make sure you have enough fuel in the car to keep it going.
- Lights – Check your lights to make sure you can see – and that your car is visible to other road users – in darker conditions.
- Oil – Learn how to top up and change your oil to keep your car running and avoid expensive repairs.
- Water – Regularly check all the fluid levels in your car, from water to screen wash and
- Electrics – Make sure your battery is fully charged and all other electrical components are fully working.
- Rubber – Learn how to check your tyres’ condition, tread depth and pressure.
Is there anything else I can do to save money?
As with most things in life, it’s important to live within your means. Only do what you can afford and think smartly about things.
Your car is a very expensive investment and it’s important to look after it. Don’t scrimp on aspects just because they are cheaper. Do your research and save where you can, but only if it feels right.
