Counting the cost for parents
Parents across the UK spent an average of £762 on their child’s motoring costs in the past twelve months. This means that the amount parents are subsidising adds up to around £2 billion a year nationwide.
Almost a third of parents said that they paid some or all the costs of their child’s first year of driving, while nearly a fifth contributed for the first two years; one in ten kept up contributions for three years. Our figures show how young drivers are burdened with higher prices – and how often it’s their parents who are footing the bill.
The average annual insurance premium for 17-24 year old drivers reached £1,324 in November 2018, and parents are paying for a fifth (21%) of this annual cost working out at £278. Petrol was the second most common financial contribution (costing £169 a year), followed by vehicle repairs (£178) and vehicle tax (£125).
According to our research, young drivers pay on average £600 more on their premium than the national average, with Insurance Premium Tax adding £161 to their premium.