Why is young driver insurance so expensive?
Young drivers face expensive insurance premiums because they’re far more likely to be involved in a car accident than older drivers. Whilst insurance costs for young drivers have slightly decreased by 1.76% to £1,324 over the past six months, they have risen by £67 over a two-year period and the average young driver now spends an eye-watering £1,324 a year for their car insurance.
The main factor in increasing insurance premiums for young drivers is the three hikes to Insurance Premium Tax. IPT now stands at 12% after doubling in the past three years and is priced into the overall premium that drivers are charged.
Our Tank of Mum and Dad report found that over half of young drivers are now reliant on their parents to subsidise the cost of running a car, parting with an average of £762 per child. Parents contribute most towards the cost of their child’s motor insurance – paying out an average of £288 each year.