The insurance comparison website confused.com have recently shown that if a young driver is to purchase their own car insurance they are going to have to pay around £2500 on average. This is a stark contrast compared to the amount of money that older drivers have to pay, which has a much lower average of just £440.
ONS figures have recently shown that the average income of those who are aged between 18 and 21 is around £14,000, and when you consider the cost of car insurance, that’s around 20 percent of their total salary. Men are typically more expensive to insure as premiums can be even higher for them. It is thought that some car insurers will offer a standard price of around £3600 to insure young men.
Older drivers are currently enjoying the lowest premiums, with drivers aged 71+ paying an average of just £436 per year. A combination of driving experience, likelihood to travel shorter distances and owning lower-powered cars can make older and retired drivers statistically a lower risk, despite the possibility that their reactions could be slower due to age.
Average costs dip significantly for drivers aged 36-40 with the average price coming in at £597, but rise dramatically again for 46-50 year-old drivers who pay an average of £733.
Gareth Kloet, Head of Car Insurance at Confused.com said: “Each age group is costed by their statistical risk and this includes the value of the car itself, the experience levels of the driver, past history and where they live among other factors. Younger drivers are hit significantly harder than more experienced motorists but Confused.com is working hard to find ways to help young drivers bring down the costs, such as working with telematics providers who offer a discount for drivers who can prove that they are safe on the road.”
There are however tips for younger drivers who are looking to reduce their car insurance costs which includes choosing a smaller and lower powered car, installing a telematics device and considering excess protection but as with any product or service, it pays to shop around for the best price by using a comparison site such as Confused.com.
Customers can access Confused.com’s car insurance price calculator, which gives data on regional prices, at www.confused.com/car-insurance/price-index.