Published On: Tue, Mar 5th, 2024

Insurance premiums skyrocket in rise of more than £600 – but only for one group | Personal Finance | Finance

Car insurance premiums for young drivers have risen by more than £600 on average, new research shows.

Young drivers research from Compare the Market found that the cost of rose to an average of £2,009, from £1,365.

This is an increase of 47 percent year on year from January 2023 to January 2024 and represents 66 percent of the total car running costs for young drivers.

Young drivers with only automatic licences face the steepest rises in the cost of car insurance with insurance premiums surging to £2,803 on average – a £916 increase year-on-year.

Figures from the DVLA show that 138,354 people passed their driving test in an automatic, compared to 34,749 people in 2012-13 as young drivers move towards prioritising automatic licences likely due to the rise in prominence of electric vehicles.

One way for young drivers to bring down the cost of these premiums is for them to add an experienced named driver to their policy.

This can lower the cost significantly but is only effective if the experienced driver does use the car regularly.

Another survey from Compare the Market found that more than three in ten drivers (31 percent) found it difficult to cover the cost of driving and nearly eight in ten drivers (78 percent) are worried about the cost of their car insurance policy.

Julie Daniels, motor insurance expert at Compare the Market, said: “The substantial rise in the cost of car insurance could make driving prohibitively expensive for lots of young people. 

“Our research shows car insurance premiums for young drivers have leapt by £644 on average.

“The increasing cost of car insurance is concerning for young drivers across the board, particularly those who have only learnt to drive automatic cars. These drivers face paying over £900 more this year to insure their car. 

“If the cost of driving continues to increase, it may force some young motorists off the road. People should encourage any young drivers they know to look for savings online. Shopping around for a cheaper policy is one of the best ways to try and save money on car insurance.”

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