Costs fall by £722
New research from Gocompare.com Car Insurance has revealed that the cost of getting a young driver on the road has fallen by 11 per cent to £5,733, compared to £6,455 last year. The £722 drop can be attributed to a significant reduction in the amount of money being spent on first cars plus a £41 drop in the average cheapest car insurance premium for a 17 year old driver.
The average cheapest car insurance premium for a 17 year old driver has fallen by around 19 per cent since 2009, moving from £2,477 then to £1,994 now. However, the cost of car insurance for a 17 year old driver still constitutes over one third of the total ‘new driver’ bill.
Over half (53 per cent) of parents said the cost of car insurance is a major concern with 12 per cent saying that their child has delayed getting a first car specifically because of the cost of insurance. After safety, the cost of car insurance is parents’ biggest concern when their child is learning to drive and 30 per cent said that the cost was far greater than expected.
To help keep the cost of getting on the road in check, young drivers and parents are spending on average £3,006 on a first car, a substantial drop from £3,685 last year. However, this is still over £500 more than the average of £2,477 spent on a first car in 2009.
The survey of 1,000 parents revealed that most give their children a significant amount of financial help to get them on the road:
- Two thirds (66 per cent) said that they have contributed to the cost of driving lessons,
- 62 per cent have paid or intend to pay towards the cost of a first car for their child,
- 24 per cent have helped or intend to help with insurance costs,
- However, 14 per cent said they haven’t given or won’t be giving their child any financial help to get them on the road.
Gocompare.com’s research also revealed that three out of five (59 per cent) of parents feel that the insurance industry should be doing more to help young drivers and the same number describe young driver insurance premiums as a ‘rip-off’. More than half of parents (51 per cent) also believe that high insurance premiums play a major factor in young people driving without insurance.
Matt Oliver, car insurance spokesperson for Gocompare.com, said: “The cost of car insurance makes up a significant proportion of the cost of getting a young driver on the road, so it’s good to see that the average premium for 17 year old drivers is continuing to fall. However, it remains to be seen whether recent changes to the personal injury discount rate, or Ogden rate, will reverse this trend over the next year.”
“While many people feel that young drivers are treated unfairly when it comes to insurance premiums, unfortunately, statistics show that newly qualified drivers are more likely to have an accident. These accidents also tend to be more serious in nature, resulting in more expensive claims – hence the higher premiums.