Young drivers car insurance costs fall

The cheapest car insurance for young drivers has decreased by 10.3 per cent in the last year, according to figures from Consumer Intelligence.

This is clearly good news for young drivers, who, despite seeing a strong fall in prices, still have to pay the most for their car insurance. In May, the average annual car insurance cost was £1,628 for drivers under 25 years, much higher than £677 for all motorists.

However, according to Consumer Intelligence’s chief executive, Ian Hughes, the cheaper premium for young drivers is “at the expense of older motorists”. Over the same time period that has seen young drivers offered premiums 23.7 per cent cheaper than in October 2013, drivers over 50 have seen their premium increase by 7.9 per cent.

One of the most likely reasons for the fall in price is black boxes becoming more common. Black boxes are telematics devices, which record your driving and can result in cheaper insurance if you are a good driver.

Black boxes are quite popular among younger drivers as they are a good way to reduce their premiums, with those under 25 being responsible for 25 per cent of all deaths on the road, despite only accounting for 12 per cent of the driving population.

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