09 May 2018
Young drivers in the UK are facing significant challenges as a result of high car insurance premiums, according to a recent report by comparison website Comparethemarket.com.
The latest Young Drivers report shows that, on average, young motorists spend £2,381 a year on running a car, with 17-24-year olds having experienced an increase of more than 8% over the last two years.
Over half of the total cost of running a car comes down to insurance premiums, with the average policy for a young person coming in at over £1,348 a year - £820 more than their older counterparts.
Increasing levels of Insurance Premium Tax (IPT) have served to add to the burden for younger drivers, with the rate of IPT having doubled in the space of three years, from 6% to 12% - adding £165 on average to a young driver’s premium, and making it 148% higher than for those over the age of 24.
Insurance represents almost 57% of the total first year running costs for younger drivers, with the average cost of fuel accounting for £818, or 34% of the total cost, and road tax, MOTs and breakdown cover making up the rest.
The government is being urged to review IPT for younger drivers, with a view to either capping or scrapping the tax in a bid to help make driving more affordable.
Simon McCulloch, director at Comparethemarket.com, commented, ‘Failing to do so will make it harder and harder for this key segment of the workforce to get to their place of work.’