Price pressure eases for young drivers

The cost of getting a young driver on the road has come down by more than £300 in the last year. Figures from Gocompare.com Car Insurance reveal that cheaper car insurance for 17-year-olds plus a reduction in the amount of money spent on first cars has seen the average price of getting a first-time driver onto the road drop from £6,768 to £6,455.

The lowest premiums available to 17-year-olds have come down by 18% since 2009 (£2,477 to £2,035), but insurance still makes up a third of a new driver’s bill, with a quarter of parents saying it was more expensive than expected, 14% admitting the price was prohibitive and 53% describing the cost of insurance for young drivers as a ‘rip off’. Nearly half (40%) also said the high prices lead to more uninsured drivers.

Gocompare surveyed 2,000 parents, finding that most contribute significantly to getting their children on the road – 67% help out with driving lessons (average cost £504); 31% contribute towards insurance;

Car insurance spokesperson for Gocompare.com, Matt Oliver, said, ‘A young driver’s first car insurance premium is significant part of the cost of getting on the road so it’s great news that the average best premium for 17-year-old drivers has fallen by nine per cent from 2014 and by 18% since 2009.

‘However, at an average of £2,035, that first premium still costs more than many people’s first cars. Unfortunately, figures show that newly-qualified drivers are more likely to have accidents and when they do they tend to be more serious and incur larger car insurance claims. That’s what’s reflected in the premiums.

‘However, some insurers will be more competitive than others when quoting premiums for young drivers so they must compare quotes from a number of different insurers to ensure they get the right cover at the best price.

‘There are some things younger drivers can do to try to lower their insurance premiums. The choice of car can make a big difference with sporty cars with larger engines costing significantly more to insure than less exciting models with engines of less than 1000cc. Telematics or ‘black box’ type insurance policies, which monitor their driving, could also help to reduce young driver premiums more quickly if they show that they are the exception to the rule by adopting safe driving behaviour.’