Young drivers overspend £350 a year on car insurance - here's how
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Young drivers are the least likely to take advantage of the savings available from switching car insurance, despite paying the highest premiums.
Failure to shop around costs young drivers as much as £350, analysis from comparethemarket.com has found. Insurers are taking advantage of naive motorists who auto-renew policies without looking for a better deal. The number of 17-20 year-olds sitting a driving test has plunged by 21 per cent since 2007, with drivers aged between 17 and 24 now having to fork out £1,275 a year on insurance. More than any other group, then, young drivers stand to benefit from playing the market and shopping around. The research found that drivers aged between 17 and 20 pay on average £352 more than they need to, while those aged between 65 and 79 overpaid by just £42. At £123, the gap between the cheapest policy and the average price (now £738) is the highest since 2012, suggesting that insurers are relying on customer inertia. Car insurance is expected to go up again this year, with the Insurance Premium Tax rising in June. Throw in rocketing fuel prices and it’s more important than ever to find a decent deal. 
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Help for young drivers to get a cheap insurance deal
There is help available to young people looking to drive down the cost of cover. From adding an experienced driver to why you shouldn’t modify, our thirteen dos and don’ts will help young drivers keep costs down; and this dad’s story about how he landed a bargain deal for his 18-year-old daughter with Admiral is well worth a read. It also pays to stay on top black box insurance - what it is, how it helps you cut premiums and any potential pitfalls. Ultimately, though, the best way to make sure you’re not overpaying is by using comparison tools to shop around for the best deal. |
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