The Parents’ Guide to a Child’s First Policy

Let’s take a look at a child’s first policy. If you’re reading this, chances are the new driver isn’t you. Your son or daughter has just passed their test, you’ve started looking at insurance, and the prices have come as a bit of a shock.

First-year car insurance can be expensive, but there are legitimate ways to bring the cost down. The important part is making sure you set everything up correctly from the start.

This guide covers what you can expect to pay, whose name should go on the policy, how adding a parent can reduce the price and the mistake you need to avoid when trying to save money.

How much does first-year car insurance cost?

Car insurance for a 17 to 20-year-old commonly costs between £1,200 and £2,500 for the first year. The exact price depends on several factors, including the car, postcode, annual mileage and type of policy.

A sensible car in a low insurance group can help keep the premium towards the lower end. Choose a more powerful car in a higher insurance group, particularly in an expensive postcode, and the price can quickly climb.

New drivers pay more because insurers don’t have much individual driving history to use when assessing them. Instead, they rely more heavily on statistics for drivers of a similar age and profile.

The first year is often the most expensive. Once your child has built up some driving and insurance history, there’s more evidence for insurers to use when calculating future prices.

Registered keeper, policyholder and main driver explained

Three different terms tend to cause confusion when parents arrange their child’s first policy: registered keeper, policyholder and main driver.

The registered keeper is the person named on the V5C and recorded by the DVLA as responsible for the vehicle.

The policyholder is the person who takes out the insurance policy.

The main driver is the person who uses the car most often.

These don’t always have to be the same person, but the information you give the insurer must accurately reflect how the car is owned and used.

If you’ve bought a car for your child and they’re going to drive it to college, university or work every day, for example, they should normally be listed as the main driver.

You can still pay for their insurance. The important thing is that the policy accurately reflects who actually uses the car.

Adding a parent as a named driver

One of the simplest ways to potentially reduce the cost of a young driver’s insurance is to add an experienced parent as a named driver.

If you genuinely plan to use the car occasionally, adding you to the policy can sometimes reduce the premium. Insurers calculate prices using a huge range of risk factors, so having an experienced driver on the policy may change the overall price.

The correct setup is straightforward: your child remains the main driver and you’re added as an additional driver.

It’s worth getting quotes both with and without you listed because adding a parent won’t automatically make every policy cheaper.

Your own no-claims discount also remains attached to your own insurance policy. However, if you’re involved in an accident while driving your child’s car, you’ll need to declare it when insurers ask about previous incidents on future quotes.

Fronting: the mistake parents need to avoid

This is where trying to save money can become a serious problem.

Imagine your child’s insurance costs £2,000 when they’re listed as the main driver. You run another quote with yourself as the main driver and your child as an additional driver, and suddenly the price drops considerably.

If your child actually drives the car most, you can’t use the cheaper setup.

This is known as fronting. It involves falsely declaring a more experienced driver as the main driver to obtain cheaper insurance for someone else.

The easiest way to avoid it is to ask one question:

Who will actually drive the car most?

That person should be declared as the main driver.

If it’s genuinely your car and your child only borrows it occasionally, adding them as a named driver can be completely legitimate. But if the car stays with your child at university and they use it every day, describing you as the main driver doesn’t accurately represent how the car is used.

Fronting can cause serious problems if you need to claim. An insurer may investigate who actually uses the car and could cancel or void the policy if the information provided was deliberately inaccurate.

Saving money on the initial premium isn’t worth risking your cover when you actually need it.

Should they have their own policy or go on yours?

It depends on who owns and uses the car.

If it’s a genuine family car that you drive most of the time, adding your child as a named driver can be an affordable way for them to gain experience.

If the car is primarily theirs and they use it most, they should have insurance that reflects that.

Having their own policy also gives them the opportunity to start building their own no-claims history. That can become valuable at future renewals if they remain claim-free.

Named drivers generally don’t build a transferable no-claims discount in the same way as policyholders, although some insurers may recognise named-driver experience when calculating future prices.

Can you pay for your child’s car insurance?

Yes. There’s nothing wrong with a parent paying for a policy that’s in their child’s name.

The important thing is that the person taking out the policy provides accurate information about the car, drivers and how the vehicle will be used.

It’s also worth comparing annual and monthly payment options carefully.

Monthly payments often cost more because insurers may charge interest for spreading the premium across the year. If you’re in a position to pay the annual premium upfront and have your child repay you monthly, that could reduce the overall cost.

Always compare the total payable rather than simply looking at the monthly figure.

Helping without constantly checking up on them

Passing a driving test doesn’t necessarily stop parents worrying. It just introduces a whole new list of things to worry about.

Putting a few practical things in place can make life easier for everyone.

Rooster offers breakdown cover from £2.99 a month, so if their car decides not to start late at night, professional help is available.

The Rooster app can also help keep track of things like MOT, tax and servicing dates, reducing the chances of important car admin slipping through the cracks.

Then there’s Rooster’s Test Drive. It measures driving over three to four weeks using their phone and produces a driving score. Safe drivers could save up to 40% on their car insurance, giving your child the chance to demonstrate how they actually drive rather than relying entirely on statistics about their age group.

Common first-car insurance scenarios

The family runaround

You have a second family car that you use regularly, while your child occasionally borrows it during evenings or weekends.

You can remain the main driver and add your child as a named driver, provided that genuinely reflects how you both use the car.

A car bought for your child

You’ve bought a car specifically for your child. They drive it to work, college or university and use it far more than anyone else.

Your child should be listed as the main driver. You can still join the policy as an additional driver if you genuinely use the car occasionally.

Taking a car to university

If your child takes their car away to university and keeps it at their term-time address, make sure the insurer knows.

The address where the car is normally kept can affect the premium, so the information on the policy needs to reflect the real situation.

If they’re also the person driving the car most, they need to be listed as the main driver.

A genuinely shared car

Some families really do split the use of a car fairly evenly.

If there’s no obvious main driver, speak to the insurer and explain exactly how you expect to use the vehicle. It’s much better to clarify the situation before buying the policy than make an assumption that could cause problems later.

First-policy checklist for parents

• Make sure you know who will genuinely drive the car most and list them as the main driver.
• If the car is mainly your child’s, get insurance that reflects this and try adding yourself as an occasional driver to see how it affects the price.
• Start comparing quotes around three to four weeks before you need the policy.
• Compare standard and telematics insurance rather than automatically ruling either option out.
• Compare the total cost of paying monthly with paying annually.
• Check the V5C, policy address, mileage and vehicle usage details carefully.
• Remember to tell the insurer if the car will normally stay somewhere else during term time.
• Consider putting breakdown cover and MOT, tax and servicing reminders in place from day one.
• Make a note of the renewal date and start shopping around again well before the policy ends.

When should you let them take over?

It’s tempting to handle everything yourself, especially when it’s their first policy and there’s a lot of money involved.

But their first year is also a good opportunity to teach them how car insurance actually works.

Go through the first policy together. Explain why you’re comparing certain options, show them what information insurers ask for and make sure they understand things like excesses, renewals and no-claims discounts.

Then, when year two arrives, let them take the lead on comparing renewal quotes while you’re there to help if they need it.

Their first insurance policy might be expensive, but at least they can come away from it knowing how to manage the next one themselves.

Parents’ car insurance FAQs

Can I insure a car for my son or daughter?

You can pay for your child’s insurance, but the policy needs to accurately reflect who owns, keeps and mainly drives the car. If your child is the main driver, they need to be declared as such.

Will being a named driver on their policy affect my no-claims discount?

Your no-claims discount belongs to your own policy, so simply being added to your child’s policy doesn’t use it. However, you’ll need to declare accidents or claims when future insurers ask about them.

Is it cheaper to add my child to my policy or get them their own?

Adding a young driver to an existing family car policy can sometimes be cheaper. However, this only works if the policy accurately reflects who mainly uses the vehicle. Their own policy also allows them to start building their own no-claims history.

Can my child build a no-claims discount as a named driver?

Generally, a transferable no-claims discount builds when someone holds their own policy. Some insurers recognise named-driver experience and may offer discounts for it, but this isn’t the same as a standard no-claims discount.

What if we genuinely share the car?

Declare the person who uses the car most as the main driver. If you genuinely split its use evenly and aren’t sure how the insurer wants the policy structured, contact them and explain the situation before taking out cover.

Download Rooster and start saving.