Car insurance costs for young drivers drop to five-year low

Car insurance premiums for young drivers have dropped £80 in the last six months, according to the latest analysis of costs. Motorists aged 17 to 24 now pay an average annual premium of £1,182, the cheapest policies have been since 2015. However, they still pay far more than drivers in other age groups and research has found that the coronavirus pandemic has had a significant impact on their ability to afford to drive. The latest figures from Compare the Market show that there has been a 6.5 per cent drop in average premiums since the start of the year. While premiums have historically fluctuated throughout the year, they are also still £38 lower than over the same period last year, when they were £1,220. Insurance costs have fallen across the board, partly as claims fell significantly during the lockdown when drivers were forced to stay at home. Separate data from Confused estimates that average premiums have fallen by £39 since the start of lockdown in March. The lockdown, however, has had other negative effects on drivers, including those in the 17-24 age group. A poll of motorists found that one in five young people has stopped using their car, as they can no longer afford it as a result of the coronavirus pandemic. In addition, 47 per cent of 17-24 year-olds said the financial impact of coronavirus has made it harder for them to afford the running costs of their car. Dan Hutson, head of motor insurance at comparethemarket.com said: “Young drivers have always had to pay the most when it comes to insurance. While this is still the case, the burden of car insurance has eased slightly during the pandemic as the cost of cover has dropped over the past six months. However, insurance remains the biggest cost for drivers by far. The pandemic has also forced many young people into financial difficulty, impacting their ability to fund the running costs of having a car.”