If you’re a young driver, you’ll already know that the cost of insuring a car is eye watering – and it’s getting worse.

While prices have gone up by 21% on average since June 2022, 17-year-olds who have just passed their test face a yearly cost of £3,075 on average to get their car insured, according to Compare the Market. That’s up from £2,004 in 2023, representing a 50% increase.

New era?

However, there may be light at the end of the tunnel with the launch of a new taskforce that will investigate the alarming rise in insurance costs.

Made up of experts from regulators, insurers and consumer and motoring groups, the taskforce aims to identify and address the many factors that are pushing up insurance prices. These include inflation, the growing problem of car thefts and the UK’s poor road conditions – we’re looking at you, potholes.

Car insurance is an essential, not a luxury … This government is committed to getting costs under control. That’s why we’re taking direct action to bring insurance companies and regulators round the table to discuss how we can crack down on spiralling costs … [The taskforce] will root out the factors driving up costs for industry and ensure drivers are able to hit the road.”

  • Transport Secretary Louise Haigh

Hit hardest

The taskforce also aims to look at those most impacted by rising insurance costs. While young drivers have not been directly referenced, driver training specialist IAM RoadSmart is advocating for solutions that will reduce high premiums, particularly for young drivers.

“We remain concerned that recent increases in premiums have had a disproportionate impact on younger drivers,” says IAM RoadSmart’s Nicholas Lyes, warning that “eye-watering premiums may be tempting some to avoid taking [insurance] out in the first place.”

Alternative approach

Instead, Lyes believes the taskforce should consider incentives that help lower premiums. These including young drivers signing up to additional training to demonstrate to insurers that they are safer drivers.

For Theory Test Pro’s tips on how to drive down insurance costs if you’re a young driver, read our guide here.

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