Tuesday , October 22 2024

Young drivers – true cost revealed

The cost of getting a young driver on the road is now £6,768, according to new research from GoCompare.com.

The price of becoming a new driver has increased by just over 18% in the last five years with insurance costs now making up around one third of the total bill.

However, the overall cost is largely driven by youngsters and parents spending on average £3,825 on a first car – up from £2,477 in 2009.

The average cost of car insurance for a 17-year-old driver has actually fallen from £2,455 in 2009 to £2,232 in 2014.

However, 24% of parents said that the cost of car insurance for their child was still far greater than expected and 13% said their children aren’t driving specifically because of the cost of insurance.

  • Average spent on a first car – £3,825.00
  • Average cheapest annual car insurance premium for a 17 year old – £2,232.00
  • Average cost of driving lessons to passing test – £480.00
  • 30% of parents help with the cost of car insurance for their children
  • 15% say the expense of getting their child on the road has been a significant drain on their finances
  • 48% of parents think that young driver insurance premiums are a ‘rip-off’

The survey of 2,000 parents revealed that the financial support they give to their children to help them get on the road is significant.

The majority of parents surveyed (62%) said that they have contributed to their children’s driving lessons, over a third (34%) have paid or intend to pay towards the cost of a car for their child and 30% have helped with insurance costs.

After ‘safety’, the cost of car insurance is parents’ biggest concern when getting their child on the road.

Typically, learning to drive can cost in the region of £601 by the time the costs of obtaining a provisional licence, lessons and test fees are taken into account.

Gocompare.com’s research revealed that on average youngsters take 20 driving lessons before passing their test, so with driving lessons costing around £24 per hour, the typical bill for lessons alone is £480.

Half (50%) of parents feel that the insurance industry should be doing more to help young drivers with 48% of parents describing young driver insurance premiums as a ‘rip-off’.

Nearly a quarter of parents (23%) accepted that the premiums for young drivers probably do reflect the risk but 38% believe that high premiums will lead to more young people driving uninsured.

Keeping premiums low

Here are Gocompare.com’s tips:

Sensible cars – Young drivers’ insurance premiums will be lower if they drive a standard car with a small engine (under 1000cc) in a low insurance group. It may not be their dream car but it is wise to drive something smaller and slower until they’ve built up some no claims bonus and have shown a safe driving record. Also avoid cars with modifications, as they can push the price of insurance up.

Consider a higher excess – This may lower your premium but you will need to decide if paying a slightly lower premium is worth the risk of having to contribute more towards the cost of a claim if you have to make one.

Consider a ‘telematics’ policy – If you’re happy for your driving to be monitored a ‘telematics’ policy, where either a GPS-enabled transmitter is fitted to your car, or monitored through the use of a smart phone app, can give you a lower premium and if you prove to be a safe driver your premiums may fall more quickly than with a traditional policy.

Added extras – consider whether you really need added extras such as a courtesy car, legal assistance, breakdown cover and key cover. Some policies include these types of cover as standard or as add-ons buy they’re not free – the cost will be built into the premium so you may be able to save money by dropping them.

Adding a safe driver – Adding another named driver with a clean licence and several years claim free driving to young driver’s policy could reduce their premium. This is one way a parent can help their child to get lower premiums without breaking the law.

Drive safely – By being careful on the road you will avoid accidents, fines and penalty points, all of which will affect your insurance premium.

About Gareth Herincx

Gareth is a versatile journalist, copywriter and digital editor who's worked across the media in newspapers, magazines, TV, teletext, radio and online. After long stints at the BBC, GMTV and ITV, he now specialises in motoring.

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