Young drivers insurance schemes - sometimes referred to as pay as you go, ‘black box’ or telematics insurance policies - are products specifically designed to help cut the cost of cover for under-21s.
All insurance policies are priced in line with risk. This means the company you buy cover from will assess how likely they think you are to make a claim, and will then charge you an appropriate price for your cover. Because young people are statistically more likely to have accidents than older drivers, their insurance costs tend to be higher across the board.
Young drivers insurance schemes use recording devices to gather extra information about when, and how well, individual customers are driving their cars - with a view to assessing their likelihood of claiming more accurately and offering them more personalised car insurance premiums.
Telematics insurance schemes for young people often result in good savings, provided driving habits and style suggest you are less likely to make a claim. However, if an individual isn’t as safe a driver as they believe, they’re unlikely to see their insurance premium decrease and could even drive it up.
It pays to shop around for a young drivers insurance product, as many mainstream insurers now offer them. Find out more about black box insurance and compare deals using our car insurance comparison tool.
Drive safely and stay within the law
Finally, once you’re insured and on the road, the simplest way you can help to reduce your future car insurance costs is to drive safely and stick to the rules of the road.
If you’re able to avoid convictions for driving offences and can build up a no-claims history, you’ll help to show that you’re a sensible driver who is less likely to need an insurance pay out - and, over time, this is the single easiest way to stay on top of the cost of car insurance
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