Insurance for Young Drivers: Telematics & Best Used Cars

Passing a driving test is a major milestone, but the first year behind the wheel can also be one of the most challenging. New drivers are still developing their confidence, judgement and ability to respond to unfamiliar situations. At the same time, they need to find suitable insurance, choose their first car and work out whether they can comfortably afford all the costs that come with it.

Recent research suggests telematics insurance could help inexperienced drivers develop safer habits. But how does black box insurance work, what should young drivers check before choosing a policy, and which used cars could be worth considering?

Why Is Insurance for Young Drivers Often Expensive?

There are lots of factors that are taken into account when looking at the price of car insurance. When it comes to younger drivers, one of the primary factors is risk, and because a young driver isn’t super experienced, that has a major effect on the cost.

Insurers will take into consideration how likely a driver is to make a claim and how much that claim could cost. Several factors can affect the price of young driver car insurance, including:

• Age and driving experience
• The make, model and specification of the car
• The vehicle’s insurance group
• Where the car is kept
• Annual mileage
• The type of journeys being made
• The driver’s occupation
• Previous claims or convictions
• The chosen level of cover
• Any voluntary excess
• Whether telematics technology is used

Young drivers usually have less experience than other motorists and have not had as much time to build a no-claims. Accident data also indicates that younger and inexperienced drivers face a higher risk during their early years on the road.

This does not mean every young driver will be involved in an accident. However, it does help explain why insurance for young drivers can cost more than cover for someone with a longer driving history.

Are New Drivers More Likely to Have an Accident?

Data published by Aviva found that drivers in their first year were more than twice as likely to make a collision claim as motorists with at least one year of driving experience.

According to its analysis, 11% of new drivers made a collision claim, compared with 5% of more experienced motorists. The findings were based on a comparison between Aviva standard motor policies and QuoteMeHappy Connect telematics policies from January 2023 to March 2025.

Wider road safety figures also demonstrate why the early years of driving matter. Government data for 2024 found that:

• One in seven car driver fatalities involved a driver aged between 17 and 24.
• Young male drivers aged 17 to 24 were four times as likely to be killed or seriously injured as drivers aged 25 or over.
• A total of 4,740 people were killed or seriously injured in collisions involving a young driver.
• A fifth of people killed or seriously injured in car collisions were involved in an incident featuring a young driver.

Age and experience are not the same thing, and not every new driver is under 25. However, many people aged between 17 and 24 are relatively new to driving.

Developing safer habits during the first year could therefore benefit drivers, passengers and other road users.

Sources: Aviva, Inexperienced Drivers More Than Twice as Likely to Make a Claim and the Department for Transport’s younger driver factsheet.

What Is Telematics Insurance for Young Drivers?

Telematics insurance, commonly known as black box insurance, uses technology to collect information about how a car is driven.

Depending on the insurer, driving may be monitored through:

• A device installed inside the car
• A plug-in unit
• A smartphone app
• Technology already built into the vehicle

A telematics policy may record:

• Speed
• Acceleration
• Braking
• Cornering
• Mileage
• When the car is driven
• The types of road used
• Mobile phone use or distracted driving

The insurer can use this information to produce a driving score. Some policies also provide regular feedback, allowing drivers to identify areas they may be able to improve.

Telematics policies do not all work in the same way. The behaviours being measured, how scores are calculated and what happens after a poor score will depend on the insurance provider.

How Does Black Box Insurance Work?

Once a black box device or app is activated, it records information while the car is being driven.

The driver may be able to view their score through an app or online account. Some providers divide the score into categories such as speed, braking and cornering, while others provide one overall rating.

The insurer may then use this information to assess how the car is being driven. Depending on the policy, the driving score could affect:

• Feedback provided to the driver
• Rewards offered by the insurer
• The renewal quote
• Whether the policy continues
• Additional charges or warnings following repeated poor driving

Some policies may also include restrictions relating to mileage or driving at certain times. A young driver should understand these rules before choosing a policy, particularly if they work late shifts or regularly drive at night.

Can Telematics Help Young Drivers Improve?

Aviva’s findings suggest that inexperienced drivers using telematics improved more quickly than those with standard motor insurance.

Its data found that collision claim frequency among inexperienced drivers with telematics fell by 48% between the first and final three months of their policy. The equivalent reduction among inexperienced drivers on standard policies was 28%.

Aviva also reported that 52% of telematics customers who received its lowest driving behaviour score went on to improve and did not receive another score at that level.

These findings do not mean a black box will prevent every accident or automatically turn someone into a safer driver. However, regular information about speeding, braking and cornering could help a new driver recognise habits they may not otherwise notice.

The technology can provide feedback, but the driver must still respond to it and continue developing their skills.

What Are the Benefits of Telematics Insurance?

Black box insurance for young drivers may offer several potential benefits.

Feedback on driving behaviour

Regular feedback can help drivers understand how they accelerate, brake, corner and manage their speed.

Greater awareness

Knowing that driving is being recorded may encourage some motorists to pay closer attention to their behaviour.

A policy that considers driving data

Depending on the provider, the driving score may be considered alongside the usual factors used to calculate an insurance premium.

Potential rewards for safer driving

Some insurers offer rewards or other benefits when a customer achieves a strong driving score. The availability and value of these benefits will vary.

A record of improvement

The app or account may allow a driver to see how their behaviour changes over time.

Reassurance during the first year

Some new drivers and their families may find regular feedback reassuring, particularly during the first year after passing the driving test.

What Are the Potential Drawbacks?

Telematics will not necessarily provide the best car insurance for every young driver.

Potential drawbacks can include:

• Restrictions on nighttime driving
• Annual or monthly mileage limits
• Reduced scores following harsh braking or speeding
• The possibility of a policy being cancelled after repeated poor driving
• Changes to the price or renewal quote
• The need to keep a smartphone charged and connected
• The collection of personal driving data
• Installation, replacement or removal charges
• Incorrect journeys being recorded against the policyholder

Drivers should compare telematics and standard insurance policies. The cheapest initial quote will not always provide the most suitable cover or terms.

Can Telematics Make Young Driver Insurance Cheaper?

A telematics policy may provide a more competitive quote for some young drivers, but lower prices are not guaranteed.

The price will still depend on factors such as:

• The driver’s age and experience
• The car being insured
• Where the driver lives
• Expected mileage
• The level of cover
• The insurer’s pricing criteria

A black box allows the insurer to collect information about how the vehicle is being driven, but each provider uses that information differently.

When searching for cheap insurance for young drivers, compare the complete policy rather than looking only at the initial premium. A policy with strict mileage limits, unsuitable driving restrictions or a high excess may not offer the best overall value.

How Can Young Drivers Find More Affordable Car Insurance?

There is no guaranteed way to secure affordable car insurance, but several steps may help when comparing young driver insurance.

Compare several providers

Insurance prices can vary considerably. Comparing quotes from more than one provider can help drivers understand the options available.

Get quotes before buying a car

The vehicle can have a significant effect on the premium. Get insurance quotes for the exact makes, models and specifications being considered before buying or entering a finance agreement.

Consider telematics and standard policies

Compare both types of cover. A black box policy may be suitable for one driver but too restrictive for another.

Choose the car carefully

Engine size, performance, value, repair costs and security can all affect the insurance group and premium.

Review the expected mileage

An accurate mileage estimate can help avoid paying for more cover than needed. It is important not to deliberately provide a lower figure than the driver expects to cover.

Consider where the car will be kept

Insurers may ask whether the vehicle is parked on a driveway, in a garage or on the road overnight. Always provide accurate information.

Review the excess

Choosing a higher voluntary excess can sometimes reduce the premium, but the amount must remain affordable if a claim needs to be made.

Add an experienced named driver where appropriate

Adding an experienced driver may affect the quote. However, the person who uses the car most must be listed as the main driver. Falsely naming someone else as the main driver is known as fronting and could invalidate the policy.

Pay annually if affordable

Monthly payments can include interest or additional charges. Compare the total annual cost of paying monthly with the cost of paying in one payment.

Improve the car’s security

Approved alarms, immobilisers or secure overnight parking may affect some quotes. Check with the individual provider rather than assuming a modification will reduce the price.

What Should Young Drivers Check Before Choosing Insurance?

Before entering a policy, check:

• What level of cover is included?
• What is the compulsory excess?
• Is there a voluntary excess?
• Does the policy cover commuting?
• Is breakdown cover included?
• Are personal belongings covered?
• Can another person drive the car?
• Is a courtesy car included?
• Are there administration or cancellation charges?
• Does the policy use telematics?
• Are there mileage or nighttime restrictions?
• What happens after a poor driving score?
• How will personal data be used?

The best car insurance for a young driver will depend on their individual circumstances. It should provide an appropriate level of cover, manageable terms and a price they can afford.

What Are the Best Used Cars for Young Drivers?

There is no single best used car for every young driver. The right option will depend on budget, experience, typical journeys and how much space is required.

Small hatchbacks can provide a useful starting point because they are generally compact and widely available. However, insurance prices can vary significantly between engines, model years and specifications.

A car with a low advertised price is not necessarily the most affordable car to own. Insurance, fuel, servicing, tax and potential repairs must all be considered.

The following models featured prominently in CarLoans365’s analysis of 5,000 customer vehicle records and may give young drivers a useful starting point for their search.

Ford Fiesta

The Ford Fiesta was the fifth-most common model generation in CarLoans365’s data, accounting for 2.20% of the records analysed.

Its compact size can suit urban driving, while the availability of used examples gives buyers a choice of ages, engines and specifications. Ford no longer produces the Fiesta as a new car, but it remains widely represented in the used market.

Insurance quotes should be obtained for the exact version being considered. A higher-powered Fiesta may cost more to insure than another version of the same model.

Ford Focus

The Ford Focus was the second-most common model generation in the CarLoans365 study, accounting for 2.83% of records.

It provides more passenger and luggage space than many small hatchbacks. This could make it suitable for drivers who regularly carry passengers, travel longer distances or need greater practicality.

Its additional size may come with higher insurance or running costs than a smaller car, depending on the version and the driver.

Nissan Juke

The first-generation Nissan Juke placed third in the CarLoans365 rankings, representing 2.76% of the records analysed.

Its compact footprint and higher seating position may appeal to drivers who want crossover styling without choosing a larger SUV. Insurance, fuel economy, servicing requirements and vehicle history should all be compared before buying.

Vauxhall Corsa

Vauxhall was the second-most common manufacturer in the CarLoans365 dataset, appearing in 11.06% of records. The Corsa was one of the familiar models contributing to that result.

The Corsa’s compact dimensions and broad availability can make it worth considering as a first car. However, insurance groups and running costs vary between generations, engines and specifications.

Other Small Used Cars

City cars such as the Kia Picanto, Hyundai i10 and Toyota Aygo may also be worth exploring. Their compact dimensions can suit shorter journeys and urban driving, although comfort, equipment and motorway performance will depend on the individual model.

Drivers should not assume that every small car will be inexpensive to insure. A quote is needed for the precise vehicle and driver.

CarLoans365’s full Britain’s Most Popular Used Cars Report explores the makes and model generations that appeared most frequently across 5,000 customer vehicle records.

The results reflect CarLoans365 data recorded between 12 December 2024 and 30 April 2025. They should not be interpreted as official UK registration or sales figures, or as a definitive ranking of the best cars for young drivers.

What Should a Young Driver Look for in a Used Car?

Popularity can help identify cars that are widely available, but it does not guarantee that a particular vehicle is suitable.

Before choosing a used car, consider:

Insurance group and quote

Check the vehicle’s insurance group and get a quote for the exact model and specification. Where possible, use the registration number of the individual car.

It may be helpful to compare both standard and telematics insurance for each shortlisted vehicle.

Vehicle history and condition

Review the service history, MOT record and mileage. Check whether the vehicle has outstanding finance and consider arranging an independent inspection.

Safety features

Look at the safety and driver-assistance technology fitted to the individual vehicle. Equipment can vary between model years and specifications.

Fuel economy

Consider the journeys the car will usually make. A small city car may suit short urban trips, while regular motorway driving could require something different.

Servicing and repairs

Research servicing costs, common faults and the price of replacement parts. A less expensive car can still become costly if it regularly needs repairs.

Practicality

Think about passenger space, luggage capacity, parking and expected annual mileage. A suitable first car should match the journeys it will actually be used for.

Total finance cost

If the car is being financed, compare the deposit, APR, agreement length and total amount payable. Do not judge affordability using the monthly payment alone.

Remember to Budget Beyond the Car Payment

A monthly finance payment only represents one part of the cost of owning a car.

A realistic budget should include:

• Finance repayments
• Insurance
• Fuel or charging
• Vehicle tax
• MOT testing
• Servicing
• Tyres
• Repairs and maintenance
• Breakdown cover
• Parking or permit costs

This is particularly important for young drivers because insurance could form a significant part of the overall budget.

Two used cars may have similar purchase prices and monthly finance payments but very different insurance, fuel and repair costs. Comparing the full cost of ownership provides a clearer picture of which one is affordable.

Our guide to five car finance mistakes to avoid explains why buyers should consider the APR, agreement length and total amount payable rather than concentrating only on the monthly figure.

Choosing a First Car Is About More Than Its Price

A suitable first car should be manageable to drive, appropriate for the journeys being made and affordable to run.

Telematics insurance could help some new drivers become more aware of behaviours such as speeding, harsh braking and rapid acceleration. Aviva’s research suggests inexperienced motorists using telematics may improve more quickly, although individual experiences and insurance policies will vary.

The car itself also matters. Before buying or entering a finance agreement, compare insurance quotes, running costs, vehicle condition and finance terms.

Taking the time to consider the complete cost can help a new driver find a used car and insurance policy suited to their circumstances.

Explore HP car finance and PCP car finance with carloans 365.

Additional resources

• Hire Purchase Car Finance
• PCP Car Finance
• Used Cars on Finance
• Bad Credit Car Finance
• Apply for Car Finance with Bad Credit
• Car Finance Calculator

This article provides general information and does not constitute financial, insurance or automotive advice. Insurance prices, driving scores and finance options depend on individual circumstances and provider criteria. CarLoans365 is a credit broker, not a lender. Finance is subject to status and terms and conditions.