Young drivers fork out over £2,400 in first year

Birmingham Post - - PERSONAL FINANCE - Vicky Shaw Spe­cial Cor­re­spon­dent

YOUNG drivers face pay­ing an av­er­age of £2,442 to run their car in the first year, up by £61 in the past six months, fig­ures show.

When sim­i­lar re­search was car­ried out in Fe­bru­ary, the typ­i­cal cost was lower, at £2,381, Com­pare The Mar­ket’s Young Drivers Re­port found.

Over a two-year pe­riod, the cost of run­ning a car has in­creased by over £140, fol­low­ing large hikes in the cost of in­sur­ance, it said.

The re­port looks at the typ­i­cal an­nual cost of run­ning a car for 17 to 24-year-old drivers, in­clud­ing in­sur­ance, fuel, road tax, MOT costs and break­down cover.

It said in­sur­ance costs for young drivers had sig­nif­i­cantly in­creased over the two years, grow­ing by around £67 to an av­er­age of £1,324 and mak­ing up over half of the an­nual cost of run­ning a car.

Hikes to in­sur­ance pre­mium tax (IPT), which af­fects the price of poli­cies, had helped push up these costs, it said, and it sug­gested IPT should be abol­ished for young peo­ple.

The in­crease in the cost of fuel has also been a ma­jor driver in the rise in over­all mo­tor­ing costs for young drivers, the re­port said.

Dan Hut­son, head of mo­tor in­sur­ance at Com­pare The Mar­ket, said: “Fuel costs have al­ways been volatile but the sig­nif­i­cant rise in price over the past six months will have a large im­pact on the af­ford­abil­ity of driv­ing, es­pe­cially for young peo­ple.

“The un­af­ford­abil­ity of keep­ing a car has sig­nif­i­cant ram­i­fi­ca­tions on young peo­ple’s abil­ity to travel to work and hold down jobs, es­pe­cially when a large pro­por­tion of their salary may be spent on travel alone.

“Not all parts of the coun­try ben­e­fit from pub­lic trans­port and for those that rely on a car, these fig­ures will be con­cern­ing.”

The Mo­tor In­sur­ers’ re­cently said an es­ti­mated Bureau 25,000 learner drivers were us­ing the roads with­out valid car in­sur­ance. Mo­tor in­sur­ance is a le­gal re­quire­ment, and like other road users, learner drivers must en­sure they have a valid pol­icy in place and meet all li­cence re­quire­ments.

Crime-fight­ing body Ac­tion Fraud has also been warn­ing younger drivers to be aware of crim­i­nals sell­ing them fake car in­sur­ance, known as “ghost bro­kers”. Re­ports re­ceived about this type of crime by Ac­tion Fraud be­tween Novem­ber 2014 and

Choose a cheaper car to in­sure. The car you drive can have a big im­pact on your in­sur­ance, with some mod­els of­fer­ing lower pre­mi­ums.

Con­sider a black box pol­icy. Telem­at­ics poli­cies can help to re­duce pre­mi­ums for sen­si­ble young drivers. The de­vice is in­stalled into your car and it mon­i­tors fac­tors such as your speed, ac­cel­er­a­tion and brak­ing.

Re­duce your mileage. Providers will use this to cal­cu­late your in­sur­ance pre­mium.

Add an ex­pe­ri­enced named driver to your pol­icy, or some­one with a low risk oc­cu­pa­tion, as a sec­ond named driver if they share your car. But be aware that it is il­le­gal to state that some­one is a main driver when that is not true.

Shop around to get the best deal. July 2018 were most likely to have come from vic­tims in the 17 to 24 age bracket. Young drivers may be par­tic­u­larly tempted to buy what looks like a cheap deal to save money, but they later find out, per­haps af­ter be­ing in­volved in a col­li­sion, that their pol­icy is fake.

Drivers buy­ing fake car in­sur­ance from risk points on their driv­ing li­cence, hav­ing their ve­hi­cle seized and de­stroyed, a fixed penalty no­tice and be­ing li­able for claims costs if they are in­volved in an ac­ci­dent.

> In­creases in in­sur­ance costs are to blame for the bur­den on young drivers

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