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Car Insurance Young People – Young drivers are worst hit by the highest car insurance costs, with some facing premiums of almost £3,000, according to the figures.
Confused.com, a price comparison company, said insurance had increased by more than £1,000 on average for 17-20-year-olds compared to the same time last year.
Car Insurance Young People
Steve Dukes, chief executive of Confused.com, told Radio 4’s Today programme: “The frequency of claims has increased over the last few years, since the pandemic, and so have the costs.
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“Used car prices are higher than ever, the cost of parts, the cost of labor to repair — and all of that gets passed on to the consumer.”
Prices of used cars – the first vehicles typically used by newly qualified young drivers – have fluctuated in the months since the Covid pandemic. Demand for used cars is increasing as production of new vehicles declines due to global shortages of computer chips and other materials needed for production.
In March 2022 the price appreciation of the used car market reached a peak of 31%, according to data from the Central Bureau of Statistics. Since then, they have suffered a sharp decline.
But young riders face the steepest jump. For 17-year-olds, premiums rise by an average of £1,423 to £2,877. For 18-year-old drivers, the average cost of a policy is £3,162.
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The figures are calculated based on the average of the five best offers received on Confused.com, not the actual policy price paid.
Mr Dukes said there were ways to reduce premiums. “When I can legally share a ride with an older, more experienced driver and add that person as a nominated driver, it can have a very significant impact and reduce costs by hundreds of pounds, it’s definitely worth considering,” he said .
Mr Dukes also suggested young drivers should explore the use of telematics or pay as you drive insurance where their behavior on the road is also the same as the driver’s primary or casualty insurance.
However, he said that with the increase in prices for the 17-20 age group, many young drivers are wondering if they can afford to drive.
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“The industry needs to be careful not to encourage young drivers to switch to other modes of transport and that’s a real risk when prices get this high,” he said.
The Association of British Insurers (ABI) says that although car insurance is expensive, there are ways to keep costs down.
He added that it was important motorists never drive without cover and urged anyone struggling to meet the costs to speak to their insurer.
However, the ABI said that insurance is always based on risk and its data showed that the average cost and frequency of claims was higher for young drivers, which could affect premiums.
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According to an ABI analysis of 28 million policies, the cost of motorist insurance rose by an average of £561 between July and September, a 29% increase compared to the same time in 2022.
The association said the figures were based on the prices customers paid for their coverage, not the prices they were quoted.
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A well-known insurance comparison company says the average 17-20 year old’s insurance has risen by more than £1,000 compared to the same period last year.
The aggregator site blamed the increase in claims since the pandemic and higher costs, telling the BBC Radio 4 programme: “The frequency of claims has increased over the last few years, since the pandemic, but the cost of claims has also increased.
“Used car prices are higher than ever, the cost of parts, the cost of labor to repair — and all of that gets passed on to the consumer.”
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Prices of used cars – the first vehicles typically used by newly qualified young drivers – have fluctuated in the months since the Covid pandemic.
Demand for used cars is increasing due to a decline in new vehicle production due to global shortages of computer chips and other materials needed for production.
In March 2022 the increase in the price of the used car market reached a peak of 31%, according to data from the Central Statistics Agency. Since then, they have suffered a sharp decline.
According to the aggregator’s site, the average price of car insurance for all drivers has increased by £366 to £995. But younger drivers face the steepest jump.
Average Car Insurance Rates By Age And State
For 17-year-olds, premiums rise by an average of £1,423 to £2,877. For 18-year-old drivers, the average cost of a policy is £3,162.
The data is calculated based on the average of the five best offers received on the aggregator platform and not the actual price paid for the policy.
The Association of British Insurers (ABI) says that although car insurance is expensive, there are ways to keep costs down.
He added that it was important motorists never drive without cover and urged anyone struggling to meet the costs to speak to their insurer.
Pdf) Factors Influencing Insurance For Young People
However, the ABI said that insurance is always based on risk and its data showed that the average cost and frequency of claims was higher for young drivers, which could affect premiums.
According to an ABI analysis of 28 million policies, the cost of motorist insurance increased by an average of £561 between July and September, a 29% increase compared to the same time in 2022.
The association said the figures were based on the prices customers paid for their coverage, not the prices they were quoted. We know that being a young driver comes with its challenges, so we want to make your journey as easy as possible. Whether you’ve taken out your own insurance policy or added to someone else’s insurance policy, we’re confident you’ll be a responsible driver so you don’t have to install any tracking devices in your car. Find out more about our young driver car insurance and why it’s right for you below.
Getting insurance in your own name means you will own the policy and be able to choose the cover that suits you. To obtain insurance in your name, you must be the registered owner of the vehicle you are insuring.
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Whichever protection option you choose, having your own auto insurance policy will benefit you in the long run. Collecting no claims bonus with us will be available to you when you renew your policy every year.
If you don’t own your own car yet, but you’re 17 or older and have a valid learner’s permit or driver’s license, you can ask your parent/guardian, family member or friend to add you as a named driver on their car insurance. policy*. They can request to add a named driver by clicking here to access their account. Their insurance premiums will likely increase, but it can be a good way to improve your driving and start your trip.
*Subject to acceptance criteria. Call us on 01 448 48 48 for more information. We are open Monday to Friday from 8am to 6pm and on Saturdays from 9am to 1pm.
Paying for your insurance all at once can be an expensive purchase, so if you prefer, we can offer a nine-month direct debit payment plan. You simply pay a small 10% deposit upfront and we split the balance into 9 monthly installments, including an 8% service fee. Average car insurance rates by age are based on how likely a person is to make a claim. Across all age groups, the average American driver paid $1,483 for auto insurance in 2021, according to an analysis of 83 million feet by The Zebra, an insurance comparison site. However, car insurance rates can be as high as $5,800 per year for new teenage drivers or as high as $1,300
