COST OF INSURANCE FALLS BY NEARLY £80 FOR YOUNG PEOPLE
- Average insurance premium for 17 – 24 year olds now stands at £1,182.
- Despite the more affordable premiums, (47%) of 17-24 year olds with a full or provisional driving have found that the financial impact of coronavirus has made it harder for them to afford the running costs of their car.
- Switching remains to be the best way to save money – the average cheapest premium is more than £200 lower than the average.
July 2020 – The cost of insuring a car has decreased by £80 over the past six months, according to new data from comparethemarket.com. It now costs an average of £1,182 to insure a car for those aged between 17-24.
While premiums have historically fluctuated throughout the year, average premiums remain significantly lower than the same time last year. They are now at their lowest levels since 2015 for the age group. Between February-July 2019, average premiums for those aged 17-24 were £1,220, so premiums have decreased by £38 year on year. In addition, the cheapest average premiums available on the market for young drivers have decreased by £18 year on year.
Despite the decrease in the cost of insuring a car, comparethemarket.com research finds that one in five young people have stopped using their car, as they can no longer afford it as a result of the coronavirus pandemic. In addition, 47% of 17-24 year olds with a full or provisional driving have found that the financial impact of coronavirus has made it harder for them to afford the running costs of their car.
Young people have faced serious financial difficulty as a result of the pandemic; comparethemarket.com research shows that 37% of young people expect to be made redundant or take a pay cut due to the coronavirus – higher than the average across all age groups.
Not being able to afford to drive can have significant consequences on jobs and social lives. Over half of young drivers (54%) believe that not being able to afford to run their car will negatively impact their ability to get a job, while almost 60% say that it will negatively impact their ability to get to work.
Dan Hutson, head of motor insurance at comparethemarket.com said:
“Young drivers have always had to pay the most when it comes to insurance. While this is still the case, the burden of car insurance has eased slightly during the pandemic as the cost of cover has dropped over the past six months. However, insurance remains the biggest cost for drivers by far. The pandemic has also forced many young people into financial difficulty, impacting their ability to fund the running costs of having a car. The easiest way to combat this is by switching. Our statistics indicate that 17 – 24 year olds can save over £200 by switching to a better deal on the market.”
Notes to editors
comparethemarket.com was launched in 2006 and has grown rapidly over the past fourteen years to become one of the UK’s leading price comparison websites.
comparethemarket.com provides customers with an easy way to make the right choice for them on a wide range of products including motor, home, life, travel and pet insurance as well as utilities and money products such as credit cards and loans.
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comparethemarket.com and comparethemeerkat.com are trading names of Compare The Market Limited. Compare The Market Limited is an insurance intermediary, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 778488).