The cost of learning to drive and getting out on the road will amount to as much as £6,800 for the average young driver, new research has revealed.
GoCompare revealed that prices for young drivers have leapt by as much as 18% in the last five years with car insurance making up approximately one third of the hefty bill.
The average cost of a first car has also increased. Youngsters and parents now spend an average of £3,825 on their first vehicle with the remainder of new driver fees coming from associated expenses – such as insurance and driving lessons.
Nearly £500 is needed for driving lessons with more money spent on passing the theory and practical tests needed to obtain a full licence.
The total cost of getting on the road is now estimated to be £6,768; although the average cost of car insurance for a 17 year old driver has actually decreased since 2009.
Five years ago the average insurance for a driver of that age was £2,455 – dropping to £2,232 in 2014.
Overall costs still remain higher though due to the additional spending made on new vehicles as people spend time and money finding cars with lower emissions, more economic engines and which meet all their needs.
As a result, and despite the fall in insurance costs, a quarter of parents still believe that it is too expensive for youngsters to learn to drive. As many as 13% went as far as to say their children do not drive specifically because of the costs involved.
Nearly one third (30%) of parents provide assistance with the cost of their child’s car insurance.
This requires a significant level of good money management; especially for the 15% who describe helping their kids with these costs as a “significant drain” on their financial resources.
Overall, nearly half of parents claimed young driver insurance premiums are a “rip-off” – but the financial aid they offer their kids doesn’t end there: two thirds also contribute towards driving lesson costs while one third help with the purchase of a vehicle.
Options to reduce insurance costs
Car insurance premiums will be lower if people drive standard cars with small engines. It may not be a dream vehicle, but it will be cheaper to run.
Should a young driver be willing to take the risk then they could also increase their excess in order to lower premiums. Remember, this could mean higher payments in the event of a claim.
Telematics policies are also increasingly popular as monitored vehicles can see premiums drop more quickly than with traditional policies – provided the driving is of a good standard.
Removing unnecessary additional extras could also reduce a premium as could adding a ‘safe driver’ with a clean license and no claims to the policy.
Saving up for these costs can be done throughout childhood but it is important that both parents and children are aware that the costs of driving quickly add up and take necessary action to accommodate these expenses comfortably within their normal finances.