Young drivers in the UK are forking out an average of £2,499 on their annual car insurance, according to new research by Confused.com and Towers Watson.
With the average 18-21 year old earning £13,972 a year, it means young drivers spending a whopping 18 per cent of their salary on insuring their vehicle. And the figure is even higher for men in this age group as they are charged premiums of £3,635 on average, nearly double the figure for young female motorists (£1,869).
Unsurprisingly, older/retired drivers enjoy the lowest premiums, with those aged 71 and over paying an average of just £436 per year, the research shows.
Average costs fall considerably for motorists aged 36-40, with the average car insurance policy costing £597, but rise dramatically again for 46-50 year-old drivers who pay an average of £733.
“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,” Gareth Kloet, head of car insurance at Confused.com explained.
“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.”
To help reduce the cost of car cover, young Brits are advised to shop around online and compare insurance deals; choose a small and low-powered car; and consider volunteering to have a telematics device fitted to their car to monitor their driving habits.