Insurance for young drivers: reduce costs and find the right cover
13.05.25
5
Minutes
Katrin Straub
Managing Director at nextsure
Taking out your first car insurance policy can be a financial challenge for many young drivers. High premiums are often the norm, but there are ways to significantly reduce the cost. This article shows you how, as a young driver, you can save up to sixty per cent and find the right cover.
The topic in brief and concise terms
Young drivers often pay insurance premiums that are twice as high as those paid by experienced drivers due to a statistically higher risk of accidents.
Through the second car policy via their parents, young drivers can reduce their insurance costs by up to two thirds.
Accompanied driving from 17 and telematics-based tariffs offer savings potential of up to 20 and 30 per cent respectively.
Risk and costs: Understanding the starting position for young drivers
Young drivers aged 18 to 24 statistically have a higher accident risk. This often leads to premiums that can be twice what experienced drivers pay. In some cases, the costs even rise by up to 150 per cent. The Federal Statistical Office reports that this age group is disproportionately involved in accidents. Knowing these figures is the first step towards optimising your own insurance situation. An overview of learner driver costs helps with initial orientation. These increased risks are reflected directly in the premiums.
Decoding premium levels: These factors influence your premium
The no-claims discount class (SF class) is a key factor in the premium amount. New drivers usually start in the expensive SF class 0, which can mean premium rates of over 90 per cent. After one accident-free year, moving up to SF class 1 with a premium rate of around 60 per cent is possible. The vehicle type also plays a major role; vehicles in a lower type class are generally cheaper. Annual mileage and the driver group, i.e. who uses the car, are other important criteria. Many insurers offer special tariffs if only one driver under 25 uses the car. The significance of the premium rate is central here. The regional class, depending on place of residence, can also influence the premium by a few percentage points.
Unlock savings potential: Effective strategies for young drivers
One of the most effective ways to save money is the second-car arrangement through the parents. This often allows young drivers to benefit from a better no-claims bonus class, for example SF ½, and thus save up to two-thirds of the cost. The Accompanied Driving from 17 (BF17) is also rewarded by many insurers. Participants can expect discounts of 10 to 20 per cent. Telematics policies that analyse driving behaviour offer further savings potential of up to 30 per cent for careful driving. The following points also help reduce costs:
Choose a voluntary excess in comprehensive cover: An excess of, for example, 300 euros can reduce the premium.
Accept a restricted repair shop network: Repairs at partner garages can reduce the comprehensive premium by up to 20 per cent.
Prefer annual payment: A single payment is often cheaper than monthly or quarterly instalments.
Restrict the driver list: Fewer named drivers, especially young ones, lower the premium.
The combination of several cost-saving measures can significantly reduce the annual burden. The option to take over an insurance policy from your parents should be considered. These measures require a careful assessment of your own needs.
Optimising vehicle selection: choosing the right type class and engine power
The choice of your first car has a significant impact on insurance costs. Models with low type classes are much cheaper in third-party liability (classes 10 to 25) and comprehensive cover (classes 10 to 34 or 33). Small cars or models with lower engine power, for example under 100 hp, are often cheaper to insure. Vehicles that are unpopular with new drivers tend to have lower type classes. It is worth checking the type class of the desired vehicle before buying. A car with a type class of, for example, 12 in third-party liability is often hundreds of euros cheaper than one with type class 19. The right choice of vehicle is therefore an important lever.
Applying expert knowledge: mastering legal matters and long-term planning
Young drivers should check the option of transferring no-claims discount classes. Under certain conditions, SF classes can be transferred from close relatives, such as parents or grandparents. However, the number of transferable years is limited to the length of time you have held your own driving licence; a 20-year-old can therefore transfer a maximum of two SF years. Our expert tip: plan the transfer strategically so that you retain as many SF classes as possible. The two-year probationary period after obtaining a driving licence also has insurance-related implications. Offences can result not only in fines, but also in remedial courses and an extension of the probationary period. A clean driving history from the outset is worth its weight in gold for future insurance premiums. Information on transferring percentages is very useful here. A long-term perspective helps to save money over the long term.
Shape your path to the right cover
Car insurance for young drivers does not have to be unaffordable. By combining smart vehicle choice, taking advantage of savings options such as a second-car policy or telematics tariffs, and building up driving experience through accompanied driving, costs can be significantly reduced. A careful comparison of different offers is essential. Pay attention not only to the price, but also to the cover – a cover limit of EUR 100 million for third-party liability is recommended. Individual advice can help you find the most suitable tariff for your specific situation. You should also consider whether it makes sense to transfer the car insurance to your child. The next step is to analyse your options in detail.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive concrete suggestions for optimisation.
More useful links
Wikipedia provides comprehensive information on accompanied driving, an important option for young drivers to gain driving experience.
FAQ
What is the no-claims class and how does it affect my premium as a young driver?
The no-claims class (SF class) reflects the number of accident-free years. Young drivers usually start in SF class 0, which means the highest premium level (often over 90 per cent of the base premium). Each accident-free year leads to a better SF class and thus to a lower premium.
Does accompanied driving from age 17 (BF17) really bring financial benefits for insurance?
Yes, many insurers offer discounts of 10 to 20 per cent for participants in accompanied driving. In addition, BF17 can lead to a better initial classification in the SF class if you later insure your own car.
What are telematics policies and are they worth it for young drivers?
Telematics tariffs record driving behaviour using an app or a box in the car. Safe and forward-looking driving is rewarded with discounts of up to 30 per cent. For young drivers, who often pay high base premiums, this can mean considerable savings.
Can I transfer no-claims discounts from my parents or grandparents?
Yes, the transfer of no-claims bonus classes is possible, but only to the extent that the young driver could have accumulated himself (in line with the length of time he has held a driving licence). A 20-year-old with two years’ driving licence ownership can therefore transfer at most no-claims bonus class 2.
What role does my car’s type class play in insurance costs?
A vehicle’s type class (e.g. on a scale from 10 to 25 for third-party liability insurance) reflects its claims and accident history. Cars with a lower type class are significantly cheaper to insure. The type class should definitely be checked before buying a car.
What happens from an insurance perspective if I cause an accident as a young driver?
A self-caused accident usually leads to a downgrade in the no-claims bonus class, which increases the insurance premium in the following year. For new drivers on probation, additional measures such as a driver improvement course may also be required.
