Shocking rise in average car insurance cost for newly-passed 17-year-old driver
Car insurance is more expensive when drivers pass their test because they are no longer being supervised
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The average car insurance for a new 17-year-old driver has been revealed.
Average quotes are lower for new drivers who are slightly older, research found.
A 17-year-old who has just passed their driving test faces paying £3,075 on average for their insurance, data from a website indicates.
This is a £1,071 increase on the typical cost of car insurance for a 17-year-old last year, which was £2,004, Compare the Market said.
The website compared quotes for March 2024 with March 2023, based on its customers’ searches and the quotes generated.
The average premium this year for a 22-year-old who has just passed their test was put at £2,503. For a 27-year-old who has just passed their test, the typical price was £1,986.
Across all ages, the average cost of car insurance for a driver with a provisional licence was £726, increasing to £2,731 when a driver passes their test and receives a full licence.
Car insurance is more expensive when drivers pass their test because they are no longer being supervised by an experienced driver – but the cost of car insurance is £771 cheaper after a motorist has earned a year of driving experience, the website said.
Julie Daniels, a motor insurance expert at Compare the Market, said: “The significant increase in the cost of car insurance could make driving prohibitively expensive for lots of teenagers.
“Newly-passed 17-year-olds must now pay more than £3,000 on average for their first year’s car insurance. This will put substantial strain on their or their parents’ finances.
“However, premiums for new motorists with no claims should then hopefully fall in subsequent years.”
She added: “As the cost of car insurance continues to increase, it may force some potential young motorists to delay learning to drive.
“For those eager to get on the road sooner, choosing a telematics policy may be a good option for some young motorists, whose premium could be reduced if they demonstrate they are a safe driver.”
The Independent revealed in August last year that motor insurance was fast becoming one of the most expensive household bills, adding more financial pain at a time of high inflation and surging housing costs.
Exclusive data from analyst Consumer Intelligence had revealed that premiums rose by 48 per cent in the year to June to hit their highest since 2018, as tens of thousands of drivers either increased the excess on their policies or switched to third-party-only cover in a desperate bid to cut costs.