Average car insurance costs for new 17-year-old drivers “exceed £3,000”
A 17-year-old who has just passed his driving test has to pay an average of £3,075 for insurance, according to data from one website.
This represents an increase of £1,071 on the typical cost of car insurance for a 17-year-old last year, which was £2,004, Compare the Market said.
The website compared the offers for March 2024 with those for March 2023 based on their customers’ searches and the offers generated.
The study found that average offers are lower for novice drivers who are slightly older.
The average premium for a 22-year-old who has just passed their exam was set at £2,503 this year. For a 27-year-old who has just passed their exam, the typical price was £1,986.
Across all age groups, the average cost of car insurance for a driver with a provisional licence was £726, rising to £2,731 if a driver passes the test and obtains a full licence.
Car insurance is more expensive when drivers pass their test because they are no longer supervised by an experienced driver – but the cost of car insurance is £771 cheaper when a motorist has a year’s driving experience, the website says.
Julie Daniels, car insurance expert at Compare the Market, said: “The significant increase in the cost of car insurance could make driving unaffordable for many teenagers.”
“Newly 17-year-olds now have to pay an average of more than £3,000 for their car insurance in the first year. This will put a significant strain on their finances or those of their parents.
“However, the premiums for new drivers without any claims will hopefully fall in the following years.”
She added: “Car insurance costs are constantly rising, so some potential young drivers may be forced to wait to drive.
“For those who want to get on the road sooner, taking out telematics insurance may be a good option. For some young drivers, their premiums could be reduced if they prove they are a safe driver.”
A spokesman for the Association of British Insurers (ABI) said: “Insurers value the freedom and independence that driving offers young people. However, insurance will always reflect risk and younger drivers are more likely to be involved in accidents. Drivers aged 17-24 make up 7% of licence holders but are involved in almost 24% of fatal and serious accidents.
“Motor insurers have faced significant cost pressures in recent years. According to a study by EY, by 2023, insurers will have to pay out £1.14 in claims and expenses for every pound they collect in premiums.
“However, the industry is determined to do everything in its power to support motorists. We have published a 10-point plan setting out the steps the industry and government can take to tackle insurance costs for all motorists. This includes calling for a phased driving licence to be introduced to improve road safety.”
“Young drivers who want to control their car insurance costs should speak to their insurer to see what options might help them, such as testing telematics or taking an approved driving course.”
