The cost of car insurance for young drivers aged 17-24 has typically risen by £658 year-on-year, according to new research from Compare the Market.
Annual car insurance cover for young drivers now costs £1,929 on average compared to £1,271 in 2022.
Most young drivers are concerned that driving is becoming unaffordable. More than seven in ten drivers aged under 25 (73%) are worried about how they will afford their car insurance policy.
Almost one in four young drivers (24%) have struggled to pay for their motor premium in the past six months. As a result, nearly six in ten young drivers (59%) expect to take on additional debt such as through loans or credit cards, to keep their car on the road.
The significant rise in the cost of car insurance for young drivers may in part be due to an increase in the cost of claims for insurers. Higher inflation will have likely impacted many areas of the motor repair industry, including the cost of spare parts, energy, and hiring specialist mechanics.
The increasing cost of car insurance is harming young people’s work and social lives. Three in ten young drivers (31%) said they don’t earn enough to cover the higher cost of driving, and 13% have said the increased cost of running their car has negatively impacted their work life.
If costs continue to rise, more than one in four young drivers (28%) are worried they will no longer be able to afford to keep driving. For more than one in five drivers (22%), higher car running costs have been detrimental to their social life, and nearly a quarter (24%) have visited their family less often.
Young drivers could save hundreds of pounds on their car insurance by shopping around for a cheaper deal ahead of their renewal.
However, only 14% of young motorists compared car insurance prices before their policy renewed – the lowest proportion of any age group. This is despite this age group being most likely to have previously helped someone else, such as an older relative, use a price comparison website (80%). Motorists aged under 35 could save up to £871 on their car insurance through Compare the Market.
Sometimes, insurance companies offer to lower premiums for drivers if they agree to having a black box monitor fitted to track their movements, speed and driving but there is a growing market on-line for jammers which block the signals.
While it’s not illegal to sell the blockers, fitting one would invalidate a motorist’s insurance and leave them uncovered in the event of an accident.