Cost of car insurance for young drivers soars by almost £600 in one year
Insurance now represents 63 per cent of the total costs young people pay to run a car
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The cost of car insurance for young drivers soared by almost £600 in just one year, new research has found.
Figures compiled by price comparison website Compare the Market show that there has been a £594 rise in the past 12 months.
The average premium for those under 24 is now £1,792, a big year-on-year increase from the £1,198 quoted in August 2022.
Insurance now represents 63 per cent of the total costs young people pay to run a car, with Compare The Market warning that higher car insurance premiums could be on the horizon as inflation hits repair costs.
Car insurance is now the third-biggest household bill, behind council tax and energy, according to Confused.com. The Independent has revealed how average premiums for all drivers have shot up – rising 48 per cent in the year to June 2023, data from analyst Consumer Intelligence showed.
The findings reflect concerns that driving is becoming increasingly unaffordable for young people, with a separate survey from Compare The Market finding that 51 per cent of motorists worry that if the costs continue to rise, they will no longer be able to afford to drive.
Meanwhile, the price of petrol has fallen by £147 in the past 12 months from £982 to £836 for a motorist travelling 6,500 miles per year, with the total annual running costs reaching £2,8864, a 19 per cent year-on-year increase.
60,000 people sign petition against 20mph speed limits in Wales
Cleaning up vehicle emissions the biggest challenge to net zero, says Harper
‘Pragmatic’ approach needed on net zero, says new Energy Secretary
Campaigner’s Ulez challenge dismissed by High Court judge
PM accuses Sir Keir Starmer of ‘clobbering’ drivers
The pitfalls on Labour’s road to a triple by-election triumph
Elsewhere, for 25- to 34-year-olds, the average insurance package increased from £560 to £845 between August 2022 and August 2023. For the 35 to 44 cohort the price increased from £453 to £656, with 45 to 54-year-olds skyrocketing by £175 from £345 to £520.
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.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments