The cost of car insurance for young drivers has risen by £644 in the past year as insurance premiums try to compete with inflation.
Motorists under the age of 25 have seen their car insurance premiums spike to £2,009 in January 2024, compared with £1,365 for the same period last year.
With insurance premiums now at record highs, motor cover represents 66 per cent of the total costs for young drivers.
The total annual car running cost has grown by 25 per cent in the past year to £3,043 compared to £2,436 in 2023.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
Drivers could reduce car running costs if they add an experienced named driver to their policy
PA
Due to prices continuing to rise, many young people are concerned that driving could become unaffordable for new motorists.
Compare the Market found that more than three in 10 drivers said it was difficult to cover the cost of driving and nearly eight in 10 drivers were worried about the cost of their car insurance policy.
More than 40 per cent of drivers stated they would need to take on additional debt, such as loans or credit card borrowing, in order to keep driving.
Meanwhile, automatic car owners have experienced their insurance premiums surge to £2,803 on average, up almost a grand year-on-year.
Automatic drivers typically pay £760 more for insurance, compared to motorists with licences to drive both manual and automatic cars.
The premium increase for automatic car drivers is expected to impact a growing number of young motorists as the DVSA showed that last year 138,354 people passed their driving test in an automatic, compared to just 34,749 people in 2012.
Julie Daniels, motor insurance expert at Compare the Market, said: “The substantial rise in the cost of car insurance could make driving prohibitively expensive for lots of young people.
“The increasing cost of car insurance is concerning for young drivers across the board, particularly those who have only learnt to drive automatic cars.”
The rising number of young drivers only learning to drive automatics could be sparked by the increase in electric vehicles which favour automatic gearboxes.
Young licence holders could reduce their car running costs by adding an experienced driver to their policy.
Daniels added: “If the cost of driving continues to increase, it may force some young motorists off the road. People should encourage any young drivers they know to look for savings online.
“Shopping around for a cheaper policy is one of the best ways to try and save money on car insurance.”
LATEST DEVELOPMENTS:
- Fuel duty freeze expected to be extended for another year in massive victory for petrol and diesel drivers
- DVLA unveils massive new driving permit changes impacting Britons and launching within weeks
- Jeremy Hunt has a 'real opportunity to show he is on the side of motorists' with 'vital' Budget changes
More than three in 10 drivers said it was difficult to cover the cost of driving
GETTY
Having someone else named on the car is a legitimate way to bring down the cost of insurance as long as the more experienced motorist also drives the car, according to Compare the Market.
Young drivers could also consider a telematics policy, also known as black box insurance, which provides more accurate risk pricing and may reduce premiums for those who demonstrate that they are safe drivers.