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Car insurance sends young motorist costs soaring

Car insurance sends young motorist costs soaring

Category: Car insurance

Updated: 26/11/2012
First Published: 15/09/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The high price of car insurance for young drivers means the average cost of getting onto the road for the first time now amounts to almost £4,500, it has been revealed.

Taking into account driving lessons, road tax, driving tests, car insurance and buying a first car, The Co-operative Insurance suggests that it will typically cost a new driver £4,459 to take to the road.

According to the research, the average 18-year-old owns a Vauxhall Corsa worth £1,450 and will have had 20 driving lessons at a cost of £480 before they take their test.

On average, however, two driving tests are necessary in order to pass, costing £62 each, while another £111 has to be forked out on a provisional licence, theory test and road tax.

By far the biggest expense, however, is car insurance, with the average premium paid by someone 17-22 years old amounting to £2,294.

It is therefore unsurprising that the cost of car insurance is one of the main reasons why people don't buy a car, with 30% citing it as the reason they remain without their own set of wheels.

Yet despite the staggering costs of getting on the road, the research also showed that new motorists are buying their first car younger than ever.

The average driver now owns their first set of wheels at just 18 years old, four years earlier than their parents' generation who had to wait until they were 22.

"Our research shows that although today's young drivers own their first car from an earlier age than their parents' generation, the cost of actually getting on the road is huge," said Grant Mitchell, head of motor insurance at The Co-operative Insurance.

"Of course, not many 18 year olds have thousands of pounds in savings, so increasingly they are relying on the 'Bank of Mum and Dad' to pay for the initial cost of driving.

"Unfortunately, the biggest challenge is the cost of car insurance which has risen at a disproportionate rate for young drivers because they are involved in more accidents on the roads."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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