The cost of car insurance for young drivers has soared by £594 in just a year, new research has found.
The average premium now stands at £1,792, representing a significant year-on-year increase from the £1,198 drivers aged under 24 would pay in August 2022. Car insurance now represents 63 per cent of the total car running costs for young drivers, with Compare the Market – which compiled the research – stating that higher car insurance premiums may be coming, in part, due to repair cost inflation.
Julie Daniels, motor insurance expert at Compare the Market, said: “Many young drivers will be worried about the soaring cost of car insurance in recent months. When combined with the wider cost-of-living crisis, more expensive insurance premiums could mean that driving becomes prohibitively expensive for lots of young people.
“For those looking to save money on their car insurance, it is a good idea to shop and compare policies to see if there is a cheaper deal available. Switching to a telematics policy may also be a more affordable option for some young motorists.”
Petrol costs for younger drivers, however, have fallen by £147 in the past 12 months from £982 to £836 for a motorist travelling 6,500 miles per year. The total annual running costs for a new car now stand at £2,8864 for a young driver. This represents a 19 per cent increase from last year, too.