While passing your driving test opens new opportunities, it comes with a serious price tag attached – the cost of insurance, which has been climbing massively. According to the latest figures from Compare the Market, 17-year-olds who have just passed their test face a yearly cost of £3,075 on average to get their car insured.
That’s up from £2,004 in 2023, representing an increase of over 50%.
Increase explained
But why the increase? Drivers between the age of 17 and 24 have a greater chance of being in an accident plus insurance costs have been going up across all age groups and experience levels.
This is leading to another worrying trend: More and more young drivers are taking to the road without bothering with car insurance at all.
Road safety charity IAM RoadSmart research shows the number of drivers between 17 and 20 caught without insurance has shot up. In 2021, 2,902 young drivers were done for driving without insurance. This has gone up by 118% in 2023 to a whopping 6,316.
Delay today?
The hike in insurance costs has left some industry experts wondering whether the smart choice is for young drivers to delay taking their test until they’re in their twenties. Compare the Market’s data reveals that while a 17-year-old pays that £3,075 average, this cost drops to £2,503 for a recently qualified 22-year-old and a just-passed 27-year-old pays ‘only’ £1,986 on average.
While waiting for so long may not be practical, for those who can, this could make serious financial sense.
If you are determined to get your licence in your teens, there is some good news. Compare the Market’s findings also reveal that insurance costs drop on average by £771 after you’ve been on the road for a year and continue to drop for each and every year of driving experience.
“As the cost of car insurance continues to increase, it may force some potential young motorists to delay learning to drive. Our research shows that these drivers could benefit from cheaper premiums if they decide to learn in their twenties instead.”
• Julie Daniels, Head of Customer Service & Operations, Compare the Market
Can’t wait?
To help combat increasing insurance costs, you can take several steps to drive down the cost of your insurance cover. For instance, consider paying a higher excess level. This is what you pay voluntarily if you ever need to make a claim on your insurance. The more you pay, the lower your premium. Simple.
You should also consider having a black box fitted by your insurer. This monitors your driving behaviour and, if the data shows you’re a safe driver, your premiums could come down in the future.
Stay legal
Think about adding an older person to your insurance policy, too. Because they have more experience of driving, this could bring down the overall cost. However, don’t be tempted to lie by saying the older person is the main driver if they are not. Known as ‘fronting’, you can kiss your insurance cover goodbye and say hello to a criminal record if you’re discovered to be telling porkies.
Finally, do be pragmatic when choosing your first car. There are 50 groups that all insurers use to determine insurance cost. You need to be aiming for a car between from 1 to 5 on the scale. Such motors won’t offer the last word in performance – but are a great way of reducing the cost of your insurance premium further.
Know Your Code
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