Learners Could Save Up to €400 a Year on Car Insurance by Passing Their Driving Test

Learner permit drivers are paying as much as 23pc more for car insurance than those on a full licence. This is according to new figures from Peopl Insurance which examined the cost of car insurance for learner drivers of various ages and the savings which can be made by moving from a learner permit to a full licence.

With 368,924 learner permit drivers in Ireland, the experts at Peopl are calling on motorists to sit their test and save themselves hundreds of euro.

Peopl Insurance Cost Comparison

Commenting on the figures, Paul Walsh, spokesperson for Peopl Insurance said:

“Of the 368,924 learner permit drivers in Ireland, almost 160,000 of these are on their second or more learner permit, while 37,000 drivers have rolled over to at least their fifth learner permit. All of these drivers are likely facing a three-zero bill for car insurance each year and losing out on significant savings by falling to pass their driving test.

Car insurance costs for young people in particular can be prohibitive, especially when they are just starting out on the road. Market analysis shows that young learner drivers are facing premiums of €2,000 plus, and possibly as much as €2,600 a year, to get insured on the road. There are substantial savings to be made by moving from a learner permit to a full licence – to the tune of about €400 a year for some young drivers. Giving the ongoing loading which those on learner permits would otherwise face, the savings will add up over the years.”

In its cost comparison analysis, Peopl Insurance trawled the market for the cheapest quotes available to the driver of a Hyundai Tucson with either a learner permit or a full licence (see Table 1 below).

Table 1: How moving from a learner permit to a full licence impacts your motor insurance premium

Mr Walsh added,

“Sometimes, the promise of money back in someone’s pocket can be a big driver for action. And that’s what we’re trying to highlight here in the hopes of spurring people on to applying for their test.  We are undertaking our own campaign of sorts to get more fully licensed drivers on the road having seen the shocking statistics that between 2019 and 2023, 117 learner drivers were seriously injured on Irish roads, and that 15 learner drivers were killed, with 14 of these unaccompanied at the time^[1]. In addition, 38 learner drivers were involved in fatal collisions between 2019 and 2023, while 352 learners were involved in serious injury collisions.”

In the wake of recent changes to Ireland’s licensing system, whereby motorists now have to sit their driving test before they can apply for a third learner permit, the experts at Peopl are advising drivers that, aside from the road safety benefits and the new legal requirements, there are significant financial gains to be made from upping gears when it comes to your driving licence.

Peopl have set out their “6-Point Holy Grail” for those learning to drive:

1. Complete 12 mandatory lessons of Essential Driver Training (EDT)
2. Sit and pass the full licence driving test
3. Drive for one year as a named driver
4. Keep your licence clean – obey the rules of the road
5. Do not engage in ‘car fronting’.
6. Use a trusted broker or Credit Union partner that has access to insurers that specialise in car insurance for young drivers.

Mr Walsh added,

“Finding affordable car insurance when you’re learning to drive can be challenging but it is possible – particularly if you follow our 6-point Holy Grail to cheaper car insurance.

We've observed that many drivers often feel intimidated by the idea of taking their driving test, leading them to delay it. However, what many don't realise is that moving from a provisional to a full license can reduce insurance premiums by more than a fifth. The driving test is there to test your ability to drive safely and competently on the road, thereby protecting your life and the lives of others.

Don’t be tempted to take short cuts such as ‘car fronting’  - where the main driver of a car declares someone else as the main driver (usually a parent) to reduce the cost of their insurance premium. While this might be tempting when you’re facing a car insurance premium of more than €2,000 a year,  ‘car fronting’ is illegal and can lead to the cancellation of the car insurance policy and a fraud conviction.

If you're on a learner permit, you may qualify for a car insurance discount and some insurers provide discounts based on the number of driving lessons completed. Some insurance companies specialising in insuring young drivers are only available through a broker. So shopping through a broker with access to such insurers could save you a substantial sum. Once you pass your test, the next step is to get at least one year’s driving experience as a named driver^[2]. Accumulating driving experience helps lower the risk profile, resulting in reduced premiums, as it demonstrates safe driving ability.”