In the past, we have made reference to how expensive it is for some young drivers to sort out car insurance at an affordable premium. For some, the cost of such cover can exceed the monthly repayments on a car loan.
It is interesting that in the most recent GoCompare/Towers Watson car insurance price index covering the last quarter of 2014 that they have made reference to how much it is costing the young motorist to arrange suitable insurance for their car. For those drivers that are in the age bracket of 17 to 25, the average comprehensive car insurance is now £1,480.37 per annum. When you consider that the average across all age ranges for this level of cover was £594 per annum you can see just how expensive it is.
Digging deeper into the figures, it has been revealed that a 17 year old would pay an average of £1,983 per annum with this being an increase of £73 on the previous quarter (a rise of 3.8%). Someone that is 18 years of age would pay £1,965 per annum with this being a rise of £85 on the last quarter (an increase of 4.5%).
Location has a big impact on premiums with young males that are aged between 17 to 20 living in Inner London paying an average of £2,813 per annum for fully comprehensive cover.
There is of course a good reason for young people paying more for their car insurance. They are likely to be far less experienced drivers and therefore present more of a risk that a 50 year old driver with 30 years experience of motoring. It is a known fact that, statistically, a young driver is more likely to be involved in a car accident than an experienced motorist.
There are some ways that people can possibly lower their premiums. For instance, they could pay a higher voluntary excess, buy a cheaper less powerful car, have an alarm fitted and park their car in a garage overnight. It also may pay to shop around by using a price comparison website to try to find a cheaper car insurance premium.