Drivers 'could save £295' by doing one thing with car insurance according to Compare the Market experts

Car insurance experts have recommended a way for young drivers to reduce sky-high premiums. Compare the Market has been digging down into its data and has come up with new research that backs up the idea.

It said young motorists aged under 25 could save up to £281 on their car insurance by adding an experienced named driver to their policy, according to new research from Compare the Market. It said its data showed the typical premium for a young driver was £1,859 with an additional named motorist on the policy.

Without any other named drivers on the policy, the average premium for a young person was £2,140 – a 15% increase. However, all named drivers must drive the car for the policy to be valid, it warned.

The research also showed motorists aged between 25 and 34 could save up to £295 on average by adding a more experienced driver to their policy. For motorists in this age group, the typical premium for a driver was £751 if they have another named driver on the policy compared to £1,046 if there were no additional drivers. This is equivalent to a 39% saving on car insurance, it said.

Car insurance costs have surged in recent years, with young drivers facing the steepest increases. The cost of living crisis has seen insurers pass on increases in repair and other costs onto drivers. The average premium for a motorist aged under 25 with no additional drivers now costs £2,140 compared to £1,783 last year – a £357 increase, Compare the Market said.

The cost of car insurance usually declines by adding an experienced driver to the policy as insurers typically take both motorists’ information into consideration when determining the premium, based on the car being shared. However, it’s essential that motorists are honest and careful to avoid 'fronting'.

Fronting is a type of insurance fraud. This is when a driver gets someone more experienced to be listed as the main driver on their vehicle, even though they do most of the driving. If a young driver is caught fronting their policy could become invalid and they could face criminal prosecution.

Julie Daniels, motor insurance expert at Compare the Market, said: “Many younger drivers are likely to be struggling to stay on the road as the cost of car insurance has risen by 19% in the past year. For these motorists, adding an experienced named driver to their policy is a legitimate way to bring down the cost of insurance.

"Young drivers could save a significant amount of money if they add a parent or other experienced driver to their policy. However, all the information given to your insurer must be accurate. Young drivers should take care to avoid fronting as it could lead to a criminal record, an unlimited fine, and six penalty points.

"To help save money on car insurance, it is also a good idea for drivers to shop around ahead of their policy ending to see if there’s a better deal. Our figures show drivers could save up to £549 on their car insurance through Compare the Market.”