This is the question people ask long before getting to the bit about what the policy covers. There's no getting away from the fact that motor insurance can be expensive, particularly for young men, but there are ways of keeping this cost to a minimum.

Here are some factors which will affect your premium:

  • First pick the type of cover you will be comfortable with. There's no point, for example, in paying for comprehensive cover on a £300 old banger. Likewise, unless you are very rich, Third Party Only cover for a Mercedes would be silly - if the car was written off in an accident, you would lose a great deal of money. So balance your needs against the cost.
  • The type of vehicle you drive will affect the cost of insurance - the 'premium'. Sports cars, cars with bigger engines, modified cars, expensive cars to repair and cars which are easy to break into, will all increase the premium. There are many other factors but, when buying a car, take a look at its insurance 'group', this will give you an idea of whether it's likely to be expensive to insure or not. Insurance groups start at 1 (cheapest) and go up to 20 (most expensive). Young drivers should aim for the lowest group possible.
  • The area you live in will affect the premium. Some areas, such as inner cities, have a higher likelihood of damage or theft than others, therefor premiums in these areas will be higher. Obviously we are not suggesting you move house to reduce your car insurance premium, but it might help in such areas if you are able to keep the car in a garage overnight.
  • Using the car for commuting to and from work affects the premium. Calculate if you are better off using public transport to get to work. Although trains and buses can be expensive, by the time you take fuel, depreciation and extra motor insurance costs into account, you might actually make a saving by not using the car.
  • Your age makes a huge difference to the premium. Age is obviously something you can do nothing about but, if you are young, it is worth shopping around because premiums can vary quite considerably between companies. The reason for high premiums for young drivers is simply because statistics show they are far more likely to have accidents - particularly young men!
  • Driving experience and driving record are also factors taken into account. The longer you have held a full licence the cheaper it will be, as long as you remain accident free. If you drive carefully and get a good driving record with no accidents and/or convictions, your premiums will reduce each year accordingly.


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