- London has highest auto insurance premiums for young drivers
- Northern Ireland has lowest insurance costs for youth drivers
- Insurance costs surge, hindering young drivers; alternatives preferred
New data reveals the regions of the United Kingdom with the highest auto insurance premiums for youthful drivers, revealing the magnitude of the London premium in particular.
Young drivers in Northern Ireland pay approximately £1,500 less for coverage than their London counterparts, according to research by Quotezone.
The annual premium increase for individuals under 25 has been the greatest, rising by £648 to £2,057 as of February 2024.
Quotezone analyzed insurance premiums for 18- to 24-year-old drivers in various regions and discovered that young drivers in the nation’s capital pay an average of £2,811 per year to insure their vehicles.
The average premiums in Yorkshire are £2,327, and West Midlands is £2,392, with a difference of £419 and £484, respectively, behind London.
On average, young motorists in Northern Ireland incur the lowest car insurance costs, amounting to £1,359 per year.
Concurrently, Compare the Market reports that annual auto insurance premiums increased by 46%, with the average premium now costing £892.
The significant increase in the cost of young individuals getting behind the wheel was primarily due to a premium increase.
According to the most recent iteration of the Household Money Index by MoneySupermarket, the average expenditure to get a 17- to 20-year-old vehicle ready for the first year is £7,609.
However, in 1989, the average cost for a youthful driver to obtain a driver’s license was £1,285 (or £3,234 when inflation was factored in). It signifies a 135% increase over 35 years.
The HMI incorporated expenses for obtaining a driving license, lessons and a test, and practical driving costs, including fuel, insurance, vehicle purchase, and tolls such as ULEZ and parking penalties.
Indeed, insurance premium increases account for most of the cost increase.
In response to a MoneySupermarket survey, nearly half of the young people stated they could not afford a driver’s license without parental financial assistance.
Greg Wilson, the chief executive officer of Quotezone, remarked, “Insurance premiums have skyrocketed in recent years, compelling motorists to question whether or not they can afford to drive.”
“In the majority of UK regions, coverage for under-25s is now approaching or exceeding £2,000 annually; as a result, many young people are unable to obtain a driver’s licence and must rely on public transportation prone to strikes, after spending over £3000 on learning to drive and passing their exams.”
Additionally, the HMI discovered that the cost of traveling by car varied by region, with youthful Londoners bearing the brunt of the increase.
It costs an average of £8,422 in London and £7,309 in Cardiff.
Consequently, the fact that younger motorists opt for alternatives to conventional car ownership is not unexpected.
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Younger drivers are more likely than elder age groups to prefer car subscription services to ownership, according to an accompanying study by Deloitte.
Based on responses from more than 1,500 UK consumers, the Global Automotive Consumer Study by Deloitte found that among those aged 18 to 34, interest in car subscriptions increased significantly.
Compared to other age groups, only one in five individuals (18 percent) expressed interest in car subscriptions. In this age group, that percentage stands at 28 percent.
According to Jamie Hamilton, director of electric vehicles at Deloitte and automotive partner, vehicle subscriptions are attractive to younger consumers due to their flexibility and variety.
They provide the benefits of owning a vehicle without the drawbacks.
