Insurance young drivers: Reduce costs and find optimal protection
13 May 2025
6
Minutes
Katrin Straub
CEO at nextsure
The first car insurance can be a financial challenge for many young drivers. High premiums are often the norm, but there are ways to significantly reduce costs. This article shows you how young drivers can save up to sixty percent and find the right coverage.
The topic in brief and concise terms
Young drivers often pay double the insurance premiums of experienced drivers due to a statistically higher risk of accidents.
Through the second car regulation via the parents, young drivers can reduce their insurance costs by up to two-thirds.
Accompanied driving from the age of 17 and telematics tariffs offer savings potentials of up to 20 and 30 percent, respectively.
Risks and Costs: Understanding the Starting Point for Young Drivers
Young drivers aged 18 to 24 statistically have a higher accident risk. This circumstance often leads to premiums that can be double what experienced drivers pay. In some cases, costs rise by up to 150 percent. The Federal Statistical Office reports that this age group is disproportionately involved in accidents. Knowing these figures is the first step to optimising one's insurance situation. An overview of beginner driver costs helps with initial orientation. These increased risks are directly reflected in the premiums.
Decoding Contribution Amount: Factors That Influence Your Premium
The no-claims class (SF-Klasse) is a crucial factor for the premium amount. Beginners usually start in the expensive SF-Klasse 0, which can mean contribution rates of over 90 percent. After a claim-free year, it's possible to move up to SF-Klasse 1 with around a 60 percent contribution rate. The type of vehicle also plays a significant role; vehicles with a lower type class are generally cheaper. The annual mileage and the circle of drivers, i.e., who uses the car, are other important criteria. Many insurers offer special rates if only one driver under 25 years old uses the car. The importance of the contribution rate is central here. The regional class, depending on the place of residence, can also influence the premium by a few percentage points.
Harnessing Savings Potential: Effective Strategies for Young Drivers
One of the most effective methods for saving is the secondary vehicle arrangement through parents. This allows young drivers to often benefit from a better no-claims class, for example, SF ½, and save up to two-thirds of the costs. The Accompanied Driving from age 17 (BF17) is also recognised by many insurers. Participants can expect discounts ranging from 10 to 20 per cent. Telematics tariffs, which analyse driving behaviour, offer further savings potential of up to 30 per cent for careful driving. The following points also help to reduce costs:
Opt for excess in the comprehensive cover: An excess of, for example, 300 euros can reduce the premium.
Accept repair shop binding: Repairing in partner workshops can lower the comprehensive premium by up to 20 per cent.
Prefer annual payment: A one-time payment is often cheaper than monthly or quarterly instalments.
Restrict the circle of drivers: Fewer registered drivers, especially young ones, lower the premium.
Combining several saving measures can significantly reduce the annual burden. The option of taking over a policy from parents should be considered. These measures require careful consideration of individual needs.
Optimise vehicle selection: Choose type class and engine power wisely
Choosing your first car significantly affects insurance costs. Models with low insurance groups are much cheaper in liability (groups 10 to 25) and comprehensive cover (groups 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 novice drivers tend to have lower insurance groups. It is worth checking the insurance group of your desired vehicle before purchase. A car with an insurance group of 12 in liability, for example, is often hundreds of euros cheaper than one with a group of 19. The right choice of vehicle is therefore an important lever.
Applying expert knowledge: Mastering legal aspects and long-term planning
Young drivers should consider the possibility of transferring no-claims discounts. Under certain conditions, no-claims bonuses can be transferred from close relatives, such as parents or grandparents. However, the number of years that can be transferred is limited to the duration of the driver's own license possession; for example, a 20-year-old can transfer a maximum of two no-claims years. Our expert tip: Plan the transfer strategically to obtain as many no-claims discounts as possible. The probationary period of two years after obtaining a driving licence also has insurance-related aspects. Violations can result in not only fines but also mandatory seminars and an extension of the probationary period. A clean driving record from the start is invaluable for future insurance premiums. Information on the transfer of percentages is very useful in this context. Having a long-term perspective helps to consistently save costs.
Shaping your path to the right coverage
Car insurance for young drivers doesn't have to be unaffordable. By choosing the right vehicle, taking advantage of savings opportunities such as second car policies or telematics rates, and gaining driving experience through accompanied driving, costs can be significantly reduced. A careful comparison of different offers is essential. Don't just focus on the price, but also on the coverage - a liability cover of 100 million euros is recommended. Individual advice can help you find the optimal tariff for your specific situation. Also consider whether it makes sense to transfer the car insurance to your child. The next step is to thoroughly analyse your options.
Request an individual risk analysis now: Have your insurance situation checked for free and receive concrete suggestions for optimisation.
More useful links
Wikipedia offers comprehensive information on accompanied driving, an important option for young drivers to gain driving experience.
FAQ
What is the SF class and how does it affect my premium as a young driver?
The no-claims discount class (SF class) reflects the number of accident-free years. Young drivers usually start in SF class 0, which corresponds to the highest premium level (often over 90 percent of the basic contribution). Each accident-free year improves the SF class, resulting in a lower contribution.
Does accompanied driving from age 17 (BF17) really offer financial benefits on insurance?
Yes, many insurers offer discounts of 10 to 20 percent for participants in accompanied driving. Additionally, BF17 can lead to a better initial classification in the SF class if a separate car is insured later.
What are telematics tariffs and are they worthwhile for young drivers?
Telematics tariffs record driving behaviour using an app or a box in the car. A safe and anticipatory driving style is rewarded with discounts of up to 30 percent. For young drivers, who often pay high base premiums, this can mean significant savings.
Can I transfer no-claims discounts from my parents or grandparents?
Yes, the transfer of SF classes is possible, but only to the extent that the young driver could have achieved independently (corresponding to the duration of their driving licence ownership). Therefore, a 20-year-old with two years of holding a driving licence can take over a maximum of SF class 2.
What role does my car's type class play in the insurance costs?
The type class of a vehicle (e.g., scale from 10 to 25 in liability) reflects its damage and accident record. Cars with a low type class are significantly cheaper to insure. Before buying a car, the type class should definitely be checked.
What happens in terms of insurance if I, as a young driver, cause an accident?
A self-inflicted accident usually results in a downgrade in the no-claims class, which increases the insurance premium in the following year. For novice drivers in their probationary period, additional measures such as an advanced seminar may also apply.
