The cost of car insurance for young drivers can be prohibitively expensive, but adding them to your policy could help drive costs down, providing they will only be using your car occasionally and you are still the main driver.
The average cost of insurance for young drivers in 2024 stood at around £2,175 per year, according to comparison site Uswitch.com, Young drivers in London tend to pay the most for their car insurance (£3,108) compared to those in the South West, who typically pay the least (£1,646). Seeing as parents often foot the bill for this insurance, it’s understandable that most will want to look at ways they might be able to reduce the cost of cover.
Here, we look at what the rules are when it comes to adding your child to your insurance, and how you should only consider doing so if they will only use your car infrequently.
Can adding my child to my car insurance save money?
If you’re an experienced motorist adding a young or new driver to your policy, you might see an increase in your premiums, so although you might save your child money by adding them, you could well face extra costs. You’re especially likely to see an increase in your premiums if your car is in a high insurance group. That said, any increase in premiums may well be much less than them buying their own separate cover.
Be warned, however – you can add your son or daughter’s name to your own car insurance policy if they use your car occasionally, but don’t be tempted to do this if they’re really the main user. It’s illegal and car insurance providers are increasingly clamping down on it.
It’s known as ‘fronting’ and immediately invalidates your policy. If you add your son or daughter as a named driver when they’re really the main driver the insurer is within their rights to withdraw cover entirely.
If your son or daughter was involved in an accident and the insurer can show that fronting was involved, they may look to recover the costs from you as the policyholder or your child as the driver. There could be penalty points added and additional fines to pay as well.
Ryan Fulthorpe, motoring expert at Go.Compare, said: “We’re seeing a period of huge financial strain on families at the moment, and it’s not surprising at all that families would want to save money wherever they can – particularly those who are facing big, new expenses like buying someone their first car.
“Unfortunately, parents often don’t realise that insuring a child’s car in your name, despite the fact that you won’t be its main driver, is an illegal offence.”
There are other risks involved in adding your child to your insurance policy, even if they aren’t going to be the main driver. For example, if they have an accident, your no claims discount may be affected. Bear in mind too that they won’t be earning their own no claims discount while they are on your policy – they will usually only start earning this once they are the main named driver on their own policy.
Can I add myself to my child’s car insurance policy?
If your child is struggling to afford cover if they are the main driver, it may be possible to reduce the cost of premiums by adding yourself or another experienced driver to their policy. All named drivers do need to drive the car for the policy to be valid.
According to comparethemarket.com, young people aged between 17 and 24 could save an average of £368 on their car insurance by adding an experienced named driver to their policy.
Julie Daniels, motor insurance expert at comparethemarket.com, said: “The cost-of-living crisis and soaring fuel costs mean that many people are struggling to stay on the road. For young drivers, the cost of insurance can also be prohibitively expensive. Adding an experienced named driver to your policy is a legitimate way to bring the cost down as long as they also drive the car.
“Our figures show that young drivers could save more than £350 on car insurance if they add a parent or other experienced driver to their policy. However, it is essential that all information provided to your insurer is accurate. Young drivers should take care to avoid fronting as they could land their parents with a criminal record, unlimited fine, and six penalty points.”
Other ways to reduce the cost of car insurance
There are a few other ways parents may be able to help their children reduce their car insurance costs.
Choose a cheap model to insure
When younger drivers are buying a car, it’s worth thinking about how expensive they might be to insure. According to Go.Compare, top of the list of the cheapest cars to insure this year are the Skoda CitiGo (£908), the Volkswagen Up! (£930) and the Seat Mii (£960).
Shop around for cover
Young drivers can also cut the cost of car insurance by shopping around when their policy ends. Comparethemarket.com says a young driver could typically save £263 by switching to the cheapest deal, while young drivers with an additional named driver on their policy could save an average of £228 by shopping around.
If your car insurance is up for renewal or you need a new policy, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare car insurance quotes, whether you’re looking for third party, third party fire and theft, or comprehensive cover.
Consider ‘black box’ insurance
Black box or telematics car insurance involves a small device being fitted in your car that monitors your driving behaviour. If young drivers can demonstrate safe driving habits, they will then be rewarded with discounted insurance. Learn more about black box insurance in our article What is black box car insurance?
Pay for cover annually
If you can afford to, it’s a good idea to pay for car insurance annually rather than monthly. If you pay every month, interest will be added to your premiums, so you’ll end up paying more overall.
You can explore other ways to reduce car insurance costs in our guide 10 practical tips to reduce your car insurance premiums.
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