Young driver insurance can cost more than 18% of annual salary
Young drivers are paying an average of £2,499 for their annual comprehensive car insurance according to figures from Confused.com and Towers Watson. Meanwhile the older generation are statistically the cheapest to insure, with average premiums costing an average of just £440 per year for 66-70 year olds, the equivalent of around £1.20 per day.
With ONS figures telling us that income for 18-21 year olds in the UK comes to £13,972 (on average), when a young driver pays for their own car insurance this could swallow up more than 18% of their salary. For men of this age group it's likely to be an even greater chunk of their salary as they try to afford premiums costing an average of £3,635 (compared to £1,869 for young women 17-20).
Older drivers are currently enjoying the lowest premiums. Drivers aged 71+ are paying an average of just £436 per year. A combination of driving experience, likelihood to travel shorter distances and owning lower-powered cars can make older and retired drivers statistically a lower risk, despite the possibility that their reactions could be slower due to age.
Average costs dip significantly for drivers aged 36-40 with the average price coming in at £597, but rise dramatically again for 46-50 year-old drivers who pay an average of £733.
Gareth Kloet, Head of Car Insurance at Confused.com said: "Each age group is costed by their statistical risk and this includes the value of the car itself, the experience levels of the driver, past history and where they live among other factors. Younger drivers are hit significantly harder than more experienced motorists but Confused.com is working hard to find ways to help young drivers bring down the costs, such as working with telematics providers who offer a discount for drivers who can prove that they are safe on the road."
Tips for younger drivers who are looking to reduce their car insurance costs:
Choose a small and low-powered car.
Consider volunteering to have a telematics device fitted in your car to monitor your driving.
Shop around to get the best price, using a comparison site.
Consider excess protection.