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Gocompare.com comments on ABI’s proposals to bring down the cost of car insurance for young drivers

16 February 2015

Cost of getting on the road a staggering £6,786 for young drivers

Matt Oliver, car insurance spokesperson at Gocompare.com, comments on the Association of British Insurers’ (ABI) proposals to bring down the cost of car insurance for young drivers, announced today (16th February).

“Today’s comment from the ABI reflects concerns raised by parents in a recent Gocompare.com study. After safety, the cost of car insurance was parents’ biggest worry when it came to getting their child on the road, with 15% stating that the expense was a significant drain on their finances*

“The cost of driving remains a significant barrier for young would-be motorists. The cost of being a new driver has increased by just over 18% in the last five years to a staggering £6,786, with around a third of this price tag (£2,232.00), coming from insurance costs alone.”

Matt Oliver continued: “Not only is the high cost of insurance for young drivers putting financial strain on families and potentially pricing young adults off the road, there is also a fear that it is leading to parents and children resorting to illegal practices to be able to afford to drive.

“As many as one in four (25%) parents are committing insurance fraud by ‘fronting’ a car insurance policy for a child in order to save them money. Additionally, nearly two fifths (38%) of parents believe that high premiums for young drivers will push more of them into driving without insurance**.

“While average car insurance premiums have fallen over the past few years, they ultimately remain a significant obstacle for many young motorists. As such, young driver premiums remain a serious issue that needs to be addressed by both the motor industry and government in order to safeguard the long-term future of driving in the UK. Currently, the best way for motorists to ensure they are not paying more than they have to for their car insurance is to compare lots of policies from different providers online using a price comparison website to find the right policy at the right price.”

For more information, Gocompare.com has a guide page available on insurance for young drivers

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Notes to editors:

*Between the 21st and 27th October 2014 One Poll conducted an online survey among 2000 randomly selected British adults with children aged between 16 and 25.

£6,768 figure is based on the following: provisional licence (apply online)  £34; driving lessons (20 lessons at £24 per lesson) £480; driving test fees - theory test (weekdays) £25, practical test (weekdays) £62; average cost of car £3825; car tax (Vehicle Excise Duty)  £110 per year  based on a 2012 Vauxhall Corsa 1.2 SXi; one year’s fully comprehensive car insurance £2,232 based on Gocompare.com’s average cheapest quote for 17 years olds between Jan 14 and Oct 14.

**Between the 21st and 27th October 2014 One Poll conducted an online survey among 2000 randomly selected British adults with children aged between 16 and 25.