The freedom of driving comes at a steep price for young people across Britain, but financial expert Martin Lewis has offered valuable advice on reducing costs. Car insurance remains one of the most significant financial obstacles for teenagers and those in their twenties taking to the roads. Recent figures show that drivers aged 17 to 24 typically face annual premiums of approximately £1,098, considerably more than their older, more experienced counterparts.

Regional variations can push costs even higher, with certain areas seeing averages far exceeding the national figure. Young drivers in London, for instance, frequently receive quotes surpassing £3,000 per year. Insurance companies impose higher charges on younger motorists because statistics demonstrate they face a substantially greater risk of being involved in road traffic collisions. Drivers aged 17 to 24 represent just 7% of UK licence holders, but they account for 24% of serious incidents.

The Money Saving Expert presented a special edition of The Martin Lewis Money Show on Tuesday evening, dedicated partly to car insurance. During the programme, Lewis fielded a question from a young viewer seeking ways to reduce their insurance costs – and his response was straightforward and direct.

“I’d be looking, if I was in your position, do you know what a black box is, a black box insurance?” he asked. “Yes, I’ve got a black box,” she replied.

Lewis followed up: “Is it based on how you drive or the time you drive” before the young driver responded “How I drive.”

Explaining how this saves her money on her car insurance, Lewis added: “You hopefully drive well, and that’ll bring your price down, but as you get older you might want to come off one of those.”

Black box, or telematics, motor insurance is designed to reward safer driving by monitoring how, when and how far a motorist drives. Younger drivers often pay less on insurance with this because insurers see them as lower risk if they demonstrate careful and consistent behaviour when behind the wheel.

These devices, typically installed in the vehicle or accessed via an app, measure your car’s speed, acceleration, braking and the time of day it is used. Driving late at night or erratically can significantly push up premiums, but steady, safer and compliant use often leads to monthly discounts and cheaper renewals.