Priced out of driving?

ARE the young being priced out of motoring?

It is certainly something I have predicted a long time and recent research seems to be backing it up.

Research by automotive website HonestJohn indicates that the number of 17-year-olds taking the practical driving test has fallen by more than 100,000 since 2007-08, while the overall number of under-25s in the UK that are learning to drive is down by a significant 20 per cent.

Hardly surprising because car insurance premiums are at a level which makes driving impossible for those without a deep purse.

For instance, a city-based teenager driving a small hatchback worth £8,000 can be quoted up to £13,498 for a comprehensive 12-month insurance policy, while those living in rural areas will be asked to pay a £8,750.

Average premiums increased by eight per cent in the first quarter of 2017, with accelerating costs being driven by Insurance Premium Tax (IPT), whiplash claims and changes in the way compensation is calculated.

Over the past few years the IPT rate has doubled to 12 per cent, netting the Government an estimated £5.8 billion a year.

As well as sky high insurance costs, an average learner is required to dig deep to get their licence, with the Department for Transport claiming that, on average, 47 hours of professional tuition are required to gain a pass.

Driver and Vehicle Standards Agency records show that while the average pass rate for the driving test has increased since 200708, from 44 to 47 per cent, the overall number of tests conducted has fallen significantly, from 1.8 million to 1.5 million, with young drivers accounting for a significant percentage of the drop.

Will things ever get better? In my view absolutely not. Cars are not going to get any cheaper. But how will autonomous driving affect all of this?

It was mentioned to me recently that if you are not actually in control of the car why would you need insurance?

I can’t see the insurance industry going into voluntary collapse over this so expect a hefty vehicle insurance to continue.