Car insurance premiums have soared by more than a third for new owners over the past four years, with the average annual cost now reaching £1,640.
A new report has revealed that motorists who have held their licence for less than two years face significantly higher costs than in previous years, when the average premium stood at £1,131.
The surge in insurance costs has not gone unnoticed by newly qualified drivers, with research showing that 80 per cent of new motorists now factor insurance expenses into their budgeting decisions when purchasing their first vehicle.
Many young drivers were found to overestimate the total cost of getting on the road, with 54 per cent believing they need to budget £20,000 for their first car and insurance combined.
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Prices for car insurance still remain high for young driversGETTYThe disparity between new and experienced drivers has widened considerably, with beginners now paying approximately £850 more annually than their seasoned counterparts, who face average premiums of £782, experts explained.
This represents a substantial burden for young motorists entering the market at a time when motoring costs across the board continue to rise.
Despite the figures, the data suggested that new drivers may be overestimating their total outlay. Reports found that many assume they need substantial funds to get started, with the total amount standing at around £4,600.
The combination of inflated insurance premiums and misconceptions about vehicle costs has created a complex financial landscape for those taking their first steps into car ownership.
Car insurance prices vary depending on car brands
GETTYBut experts have warned that location plays a crucial role in determining insurance costs for new drivers, with significant variations across the UK.
The Isle of Lewis in Scotland, for example, offers the lowest premiums at £1,028.05 annually, followed by Llandrindod Wells in Wales at £1,050.38.
Other affordable areas include Kirkwall in Scotland (£1,238.23), Dorchester in England (£1,276.02), and Bath (£1,281.72). Worcester, Gloucester, Perth, the Shetland Islands and Cambridge complete the top ten cheapest locations, all offering premiums below £1,320.
These areas benefit from a combination of factors, including lower-risk roads, reduced traffic volumes, minimal theft rates and fewer insurance claims.
Car insurance prices have been found to be more expensive now than four years ago
GETTYThe geographic disparities have meant that some new drivers could save over £600 compared to the national average of £1,640, depending on their postcode.
Toyota has emerged as the most popular choice for new drivers, with 23 per cent selecting the Japanese manufacturer for their first vehicle. Audi followed at 14 per cent, while Ford captured 13 per cent of the market.
The survey revealed that traditional starter car brands like Nissan, Kia and Peugeot were losing ground to premium marques, with Honda, Hyundai and Volkswagen each accounting for six per cent of first-time purchases.
Insurance costs have also varied significantly depending on the manufacturer, with Toyota drivers benefiting from relatively affordable premiums averaging £1,484 annually, while Audi owners face steeper costs at £1,993. Ford, long favoured by beginners for models like the Fiesta and Focus, sits in the middle at £1,635.
Average car insurance premiums for new drivers have been priced at £1,600 a year
GETTYExperts explained that Toyota's appeal may stem from its reputation for reliability, safety and low running costs, with models like the Yaris and Corolla offering fuel efficiency and hybrid options.
To help drivers find better prices, MoneySuperMarket has launched a new car insurance calculator tool. Users can enter their age, region and car model to receive average premium estimates in under a minute.
Alicia Hempsted, car insurance expert at MoneySuperMarket, said: "With insurance premiums for new drivers now averaging over £1,600 a year, it's more important than ever for young motorists to be savvy when budgeting for their first car.
"By using real-time data and skipping lengthy forms, it gives users a super quick and accurate starting point to plan with confidence."