Wales’ based Gocompare.com says the cost of getting a young driver on the road is now £6,768, with insurance costs making up around one third of the total bill.
The price of becoming a new driver has increased by just over 18% in the last five years, largely driven by youngsters and parents spending on average £3,825 on their first car, up from £2,477 in 2009. The average cost of car insurance for a 17 year old driver has actually fallen from £2455 in 2009 to £2232 in 2014.
However, 24% of parents said that the cost of car insurance for their child was still far greater than expected and 13% said their children aren’t driving specifically because of the cost of insurance.
- Average spent on a first car – £3,825.00
- Average cheapest annual car insurance premium for a 17 year old – £2,232
- Average cost of driving lessons to passing test – £480.00
- 30% of parents help with the cost of car insurance for their children
- 15% say the expense of getting their child on the road has been a significant drain on their finances
- 48% of parents think that young driver insurance premiums are a ‘rip-off’
The survey of 2,000 parents revealed that the financial support they give to their children to help them get on the road is significant. The majority of parents surveyed (62%) said that they have contributed to their children’s driving lessons, over a third (34%) have paid or intend to pay towards the cost of a car for their child and 30% have helped with insurance costs. After ‘safety’, the cost of car insurance is parents’ biggest concern when getting their child on the road.
Typically, learning to drive can cost in the region of £601 by the time the costs of obtaining a provisional licence, lessons and test fees are taken into account. Gocompare.com’s research revealed that on average youngsters take 20 driving lessons before passing their test, so with driving lessons costing around £24 per hour, the typical bill for lessons alone is £480.
Gocompare.com’s research also revealed that half (50%) of parents feel that the insurance industry should be doing more to help young drivers with 48% of parents describing young driver insurance premiums as a ‘rip-off’. 23% of parents accepted that the premiums for young drivers probably do reflect the risk but 38% believe that high premiums will lead to more young people driving uninsured.
Matt Oliver, car insurance spokesperson for Gocompare.com, said, “Learning to drive and owning your first car is a rite of passage for most young adults but the cost of becoming a new driver can quickly mount up.
“Although we found the average amount spent on a first car is now £3825, many 17 year old drivers will find their first year’s car insurance premium costs more than the car itself. At an average annual premium of £2232.00, there is no getting away from the fact that insurance for young drivers is costly.
“However, the average cheapest premium for a 17 year old driver has fallen in the last 5 years. Some insurers will charge young and inexperienced drivers more than others, so young drivers must compare quotes to ensure they get the best deals.”
Matt added, “There are a number of steps parents and young drivers can take to try to keep costs down. The choice of car can make a dramatic difference and new drivers could also consider a ‘telematics’ style insurance policy which monitors their driving and could lead to lower premiums more quickly if they demonstrate themselves to be safe on the road.”