Student car insurance

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Your guide to comparing student car insurance

Student life is busy. It’s also a time when you’ll want to save as much money as possible. If you’re taking your car with you to university, it’s important to understand the ins and outs of car insurance so you can find a policy to suit your needs and your budget.

Do I need car insurance as a student? 

Yes, everyone who owns and drives a car is required by law to have car insurance. If you already have car insurance before you head off to study away from home, you should update your policy with your new term-time address, and list your occupation as a student.

If you’re caught driving a vehicle you’re not insured to drive, you could face a fixed penalty of £300 and six points on your licence, as well as your car being seized or even destroyed. If the matter is referred to the courts, you could be given an unlimited fine and disqualified from driving.

At a glance 

  • Student car insurance is typically more expensive
  • Giving false information about your address or occupation could invalidate your policy
  • As a student there are several things you can do to lower your car insurance

Why is car insurance for students so expensive?

Whether you’re already a uni student, or a 17-year-old driver, running a car is going to be expensive.

The reasons for this include:

  • Age - insurance providers know that young drivers, the group that students are most likely to belong to, are more likely to have accidents, so the cost of premiums in the first few years is going to reflect that risk.

  • Lack of no-claims discount as a young driver, you won’t have had the time to build up a no claims discount. Once you do, it can help reduce your car insurance premiums.

  • Where you live can also affect your insurance premiums. If you live in a big town or city, leave your car parked overnight on the street, or live in an area where car crime rates are high, the risk of something happening to your car is higher, so your premium probably will be too.

Do students get a discount on car insurance?

Car insurance providers don’t typically offer discounted car insurance for students. But there are several ways students could save on their car insurance. These include paying the yearly premium in one lump sum, installing a telematics device (black box) and comparing car insurance quotes with us to find a good deal.

How can I reduce the cost of student car insurance?

Car insurance is often costly, but the good news is that there are ways you can make it more affordable.

  • Choose a practical car
    A smaller car with a smaller engine will most likely fall into a lower insurance group. Not only will it be cheaper to insure, but probably cheaper to run as well.
  • Pay your premium in one go
    It’s typically cheaper to pay your yearly insurance in one lump sum. A monthly payment plan will most probably have interest charges on top of the instalments.
  • Shop around
    Simply comparing different quotes with our comparison service could save you money and it will only take you a matter of minutes.
  • Check different levels of cover
    Most of us assume that third party insurance is the cheapest cover and comprehensive the most expensive, but that’s not always the case. If price is a priority, check a range of cover types to see if a cheaper premium could suit your needs.
  • Increase your voluntary excess
    Car insurance excess is the amount you’ll have to pay when you make a claim, before your insurance kicks in. If you’re under 25, some insurance providers may also require you to pay an additional young driver excess, as they consider you high risk. Increasing your voluntary excess could mean a cheaper monthly premium. Just make sure you can afford the compulsory excess set by your insurance provider, as well as your voluntary excess and any young driver excess, if you need to make a claim.
  • Improve security
    Fitting additional security, such as an industry approved alarm or immobiliser to your car could help reduce your premiums (if your car doesn’t already have either of these). You need to assess the one-off costs against any insurance savings you might make, so check with your insurance provider first about any possible discount. 
  • Look for secure parking
    When you’re shopping around for student accommodation, add off street parking – or better yet, space in a garage – to your list of needs. If you can assure your insurance provider that you have secure off road parking you may get a lower quote for your car insurance.

  • Add an experienced driver
    If you can add an experienced driver who also uses the car (for example, a parent or older sibling) to your policy, it could save you money. Even someone who drives the car occasionally could make a difference, as long as they’re an experienced driver with a good driving record. Just remember, they should actually drive the car every now and again. Don’t put them forward as the main driver if this isn’t the case. Doing so is known as car insurance fronting and is illegal.

  • Limit your mileage
    Your insurance provider will need to know how many miles you think you’ll drive in a year. If you’re likely to use your car only during holidays or at the weekends, then declaring a low annual mileage estimation could cut the cost of your premium.

  • Take out telematics cover
    A black box, or telematics policy refers to a small device placed in your car, or an app you can download to your phone. It monitors how you’re driving, then sends the information to your insurance provider. If you drive well, they may reward you with a lower premium. It’s an incentive for motorists to drive more safely.
  • Pay as you go
    Pay-per-mile car insurance charges you for the number of miles you drive, plus a flat fee that covers your car against damage or theft while it’s parked. If you’re not a frequent driver, this could be a cheaper option for you.
  • Build up your no claims discount
    Some factors – like your age and years of driving experience – are out of your control, but if you drive safely, pay for any small repairs yourself, and start to build up your no claims discount, you’ll gradually start to the see the benefit when the time comes to renew your policy.

  • Avoid modifications 

    Cars that have been modified from their factory settings are considered high risk by insurance providers, as they’re often more appealing to thieves.

  • Take a Pass Plus course
    If you’ve just passed your test, you could consider taking a Pass Plus qualification in the first year. It’s a bit more advanced than standard driving lessons and should give you practical experience of dealing with different situations. Some insurance providers will take this into consideration and may offer a discount on your car insurance. See more on the Pass Plus Scheme.

What are the different types of car insurance?

There are three types of cover to choose from: 

  • Third party insurance is the most basic cover you need to drive legally. It covers you for damage you may cause to another vehicle, or if someone is injured and it’s your fault (including passengers in your car).
  • Third party, fire and theft insurance offers the same cover as third party, but you’ll also be covered if your car is stolen or damaged by fire.
  • Fully comprehensive insurance offers the same cover as above, but it can also pay out for damage to your car. It may cover injury to you too, although this isn’t always the case, so you should check your policy’s T&Cs.

Where can I find cheaper student car insurance?

With our price comparison service, you can compare trusted insurance providers and get an overview of the deals available on the market. Remember, we’re here to help you get the right cover at a price you can afford.

Frequently asked questions

What is ‘fronting’ and how should I avoid it?

Fronting is when someone claims to be the main driver of a car, but another person, who is also named on the policy as an additional driver, drives it more.

To avoid fronting, be 100% honest with your insurance provider. You don’t have to be the principal policyholder, but if you use the car more than your parents, you must be named as the main driver so that the cost of the premium will reflect your ‘high risk driver’ status.

Do I have to say I’m a student when applying for car insurance?

Yes, if you provide false information to your car insurance provider, you could invalidate your policy. This could prove extremely costly if you need to make a claim and it will go on your record as a warning to future insurance providers. Plus, without the correct insurance to drive your car, you risk a fine and points on your licence from the police, or worse.

Can I get car insurance for a short time?

As a student, you might not need to drive all year round, so temporary car insurance on a parent or friend’s car might be the best option.

Perhaps you’re planning a road trip over the summer holidays or taking a group of friends to a festival. With temporary insurance, you can take out cover for a short period of time. With Compare the Market you can get temporary insurance for up to 28 days, but it can be possible to find temporary insurance for up to 84 days, depending on the provider.

What extras can I get with car insurance?

Optional extras you can add to your car insurance policy usually include:

  • Breakdown cover – get roadside assistance if your car breaks down.
  • Courtesy car cover – you’ll be provided with a temporary replacement vehicle if your own car is written off or is undergoing repairs.
  • Legal expenses – this may pay for legal fees resulting from a car insurance claim.
  • Lost keys cover – be covered for the cost of replacing your keys if they’re stolen or lost.
  • Windscreen cover – this pays for repairs to your windscreen if it’s chipped, cracked or needs replacing.

What should I say my address is for my car insurance?

For insurance purposes, your address should be the place where your car is kept for most of the year.

What if I decide to leave my car at home?

If you decide not to take your car with you to university, there are a few options when it comes to your car insurance:

  • Maintain your insurance
    Keep your policy running, and your car taxed, and let your insurance provider know that you won’t be using the car very much.
  • Register your car as SORN
    Even if your car is sitting on your parents’ drive unused, you’ll still have to tax and insure it, unless you make a Statutory Off Road Notification (SORN). While SORN, you can’t drive or park your car on a public road.

How do modifications impact my insurance price?

Insurance providers consider modified cars a target for thieves, so they may increase your premiums.

A car modification is any kind of alteration made to your vehicle that changes it from the manufacturer’s standard settings. It could be a performance change like upgrading your exhaust, or a cosmetic tweak – tinted windows or new speakers, for example.

Do I need insurance when I’m learning to drive?

Most professional driving schools will include insurance for you to drive in the instructor’s car in the price of the lessons, but you’ll need insurance if you’re learning to drive in a friend or family members car, even if it’s just for the occasional practice between lessons. Read our guide to insurance for learner drivers.

What happens when I leave university?

Once you leave uni, you’ll need to contact your insurance provider and update your policy with your change in occupation and any change of address.

I’m a mature student – does this mean I’ll pay more for my car insurance?

Even if you’re a mature student, you may find your car insurance is more expensive than you’d expect.

This is because your occupation will be listed as ‘student’, which is typically considered a high-risk category. On the other hand, as a mature student, insurance providers will also look at other factors including your age, your driving history and where you live when they calculate your insurance premium.

What do I need to get a quote?

Getting a quote with Compare the Market is easy. You’ll just need to give us a few details about you and your car, including:

  • Your car registration 
  • What you use your car for 
  • Where you keep your car 
  • Your annual mileage 
  • Where you live 
  • Your driving history 

Once you’ve filled in our online form, we’ll show you a list of quotes to choose from.

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Why use Compare the Market?

50% of customers could save up to £333 [4] on their car insurance

92.0% of users would recommend Compare the Market to friends or family [5]

We compare car insurance from 66 providers [6]

[4] Based on Online independent research by Consumer Intelligence during June, 2022, 50% of customers could save up to £333.55 on their car insurance premium.

[5] For the period 1st June to 31st August 2021, 8,944 people responded to the recommend question. 8,226 responded with a score of 6 or above, therefore 92.0% are likely to recommend.

[6] Correct as of June, 2022

Compare cheap car insurance quotes from 142 trusted provider products[2], including:

Author image Julie Daniels

What our expert says...

“Being a student probably means you’ll pay more for your car insurance than most older, more experienced drivers. Even so, you should never try to cut corners by misleading your insurance provider about where your car is kept most of the time, or who the main driver is. Not being completely truthful could invalidate your policy.”

- Julie Daniels, Motor insurance expert