Results from the Confused.com/Tower Watson Car Insurance Price Index have revealed the cost of insurance is crippling young drivers.
The cost of running a vehicle is expensive for any driver with insurance costs, tax, maintenance and rising petrol prices. But for young drivers the cost of car insurance is taking up 18% of their full time salary.
Young drivers pay on average £2,499 a year to insure their vehicle. According to the Office of National Statistics the average income for those aged 18-21 is £13,972. Taking both figures into account the younger generation are seeing a large amount of their income being spent on their insurance premium.
As for male drivers aged 17-20 the average charge for insurance is £3,635 compared to females of the same age who pay £1,869. The figure rises to 25% of a male’s salary without taking other car needs into consideration.
There is a substantial difference in age brackets when it comes to insurance premiums, as we know young drivers pay the most at £2,499 a year, ages 21-25 pay £1,411, ages 26-30 pay £915 and ages 31-35 pay £679. As the age groups get older less is paid for insurance.
Many young drivers have fitted a blackbox to their vehicle to try and tackle the issue of rising insurance costs. The blackbox is fitted to the vehicle and the driver is marked on how they have performed whilst driving. The logic behind the system is that the safer the driving the insurance cost will then come down. It has also proved to cut the risk of an accident by 40%.
Ian Donaldson Managing Director of Autonet Insurance commented: “Insurance costs are rising constantly but now it’s not only insurance that young drivers need to think about, it is the cost of petrol rising as well as other maintenance costs that can make running a car expensive. The latest blackbox system seems to be helping many young drivers to bring the cost of their insurance down, unfortunately there is little that can be done to lower insurance costs.”
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By Amanda Bainbridge