Young Drivers’ Insurance Premiums

Who would be a young driver looking at car insurance quotes having just passed their driving test!

Apparently, young drivers are having to pay car insurance premiums that equate to almost one fifth of their salaries.

The average annual salary if you are aged between 18 and 21 is £13,972. Research has revealed that, on average, it costs them £2,499 per annum for fully comprehensive car insurance that equates to around 18% of their annual salary.

When young drivers are looking at car insurance quotes the premiums are highThat is the average-young men have to pay even more because they are deemed to be a greater risk, as they are more likely to be involved in an accident than a female. On average, a young man in the above age bracket would pay £3,635 per annum in car insurance premiums.

At the other end of the scale older drivers pay the lowest car insurance premiums. For those who are over 70 years of age, they will be faced with an annual cost of £436 to insure their car and £440 for those between 66 and 70 years of age.

The research was undertaken for and Gareth Kloet from the comparison site said: “Costs for each age group are calculated according to their statistical risk.

“This includes the value of the car itself, the experience levels of the driver, past history, and where they live. But younger drivers are hit significantly harder than more experienced motorists.”

This research was produced following Justine Greening, Transport Secretary, urging car insurance companies to fit cars with electronic “black boxes” with a view to helping young drivers obtain cheaper car insurance.

The “black boxes” assess the driving behaviour of someone such as cornering, speed, braking and acceleration in addition to monitoring when the driver makes the journey. The idea is, that to safe drivers, the car insurance provider could offer a discount.

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