Young drivers hit with £4,000 average car insurance cost
Car insurance costs for 17-20 year olds have crashed through the £4,000 barrier, with the average 17-20 year old male now paying a staggering £4,006 per year for comprehensive cover.
This is the first time since the Confused.com/Towers Watson Car Insurance Price Index began in 2006 that average annual car insurance costs for young men have exceeded £4,000.
Bizarrely, young male drivers in this age bracket see their car insurance costs reduce by around £1,000 if the driver is married and adds their partner to the policy.
In order to afford a £4,000 a year premium and cover the cost of running a car, the average single male would need to spend £6,500 a year - almost half of the average salary of full-time employees at this age. This effectively prices them out of the market.
Gareth Kloet, Head of Car Insurance for Confused.com commented: "For young male drivers it has never been more important to shop around for the best price. Our consumer research shows that 50% of under 25s could save up to £556 on car insurance by using Confused.com. This is one way to help combat these rises."
The news isn't only bad for young drivers though. The average cost of a comprehensive car insurance policy across the UK stands at £858 (as of the end of June 2011), marking a year on year rise of £170.
Despite the huge increase in the last twelve months, prices are still continuing to rise. In Q2 of 2011, prices inflated by an average of 25% compared to Q2 2010.
Statistics from Quarter 2 of 2011 tell us that:
The average cost of comprehensive cover in the UK is now £858, up £22 in the last 3 months and up £170 in the last 12 months.
The annual rate of price inflation for comprehensive cover is now 25%.
The average price of a comprehensive policy increased 2.7% across the UK in Q2, with drivers in Northern Ireland hit hardest with a 5.1% increase.
The average price of a comprehensive car insurance policy rose by 2.7% in the second quarter of 2011, the fourth consecutive quarter in which price rises have been less than in the previous quarter.
Third party, fire and theft (TPFT) cover increased the least in Q2 by just 1%, but the cost a TPFT policy is still up 33% in the last year.
The biggest increases this quarter have been seen among the 29-33 year old age group.
Over 4 million quotes are used in the construction of each quarter’s insurance price index - this makes it the most comprehensive insurance index in the UK.