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Costs After Passing Your Driving Test: What New Drivers Pay

Passing is just the beginning. Here is what the first year on the road actually costs.

Your Full Licence: Free

Good news: your full driving licence costs nothing. DVLA automatically converts your provisional and sends the full licence to you within 3 weeks of passing. No forms, no fee.

Car Insurance: The Big One

Insurance is by far the biggest ongoing cost for new drivers. Young drivers pay dramatically more because they are statistically higher-risk.

AgeTypical annual premium
17£1,500 - £2,500
18£1,200 - £2,000
21£800 - £1,500
25+£500 - £1,000

Ways to reduce your premium

  • Black box / telematics: Insurer monitors your driving via a device or app. Good driving earns 10% to 30% discount.
  • Named driver: Adding an experienced driver to your policy can reduce premiums. But you must be the main driver, not them (fronting is illegal).
  • Higher excess: Accepting a higher voluntary excess reduces the premium. But make sure you can afford the excess if you claim.
  • Smaller engine: Insurance groups 1 to 10 cost significantly less than groups 20+. First cars in groups 1 to 5 get the best rates.

Car Tax (Vehicle Excise Duty)

Car tax varies by emissions for cars registered after April 2017. Popular first cars and their typical tax bands:

Car typeAnnual tax
Electric vehicles£0
Small petrol (Corsa, Fiesta, Polo)£30 - £165
Medium petrol / diesel£165 - £190

Check your car's exact tax band at HowMuchIsCarTax.com.

MOT

Cars need an MOT after their 3rd birthday, then annually. The maximum fee is £54.85, though many garages charge less. If your first car is less than 3 years old, you will not need an MOT until the 3rd anniversary of its registration. For current MOT fees, see MOTCost.com.

Fuel Costs

New drivers typically cover 6,000 to 8,000 miles per year. At current fuel prices and assuming a small, economical first car:

Low mileage (6,000 mi)

~£800/yr

Higher mileage (8,000 mi)

~£1,100/yr

Total First-Year Running Costs

ExpenseAnnual cost
Insurance£1,500 - £2,500
Car tax£0 - £190
MOT (if applicable)£0 - £55
Fuel£800 - £1,500
Maintenance and servicing£300 - £600
Breakdown cover£30 - £100
Total first-year costs£3,000 - £5,000

Excludes the cost of the car itself. First cars typically cost £2,000 to £8,000.

New Driver Rules

6 points in 2 years = licence revoked

If you accumulate 6 or more penalty points within 2 years of passing, your licence is automatically revoked. You would need to reapply for a provisional and pass both theory and practical tests again.

No motorway restriction

Since 2018, there is no restriction on new drivers using motorways. However, you may want to consider Pass Plus, a voluntary course that covers motorway driving, night driving, and other skills. It can also reduce your insurance premium with some providers.