A study by insurance company Admiral has found that under-25s could be spending as much as £9,136 in their first year of driving.
The cost of learning to drive is included in this, with Admiral’s Young Driver Report estimating the cost of driving licences, lessons and exams at just under £1,250, increasing if they need to re-sit either their theory or practical tests.
After passing their tests, young drivers then need to get hold of a car. More than half of youngsters surveyed by Admiral said they turn to finance deals to get them behind the wheel. Their monthly budgets range from £200, with 24% of young drivers are prepared to pay upwards of £500 a month to get the car they really want. Car finance typically costs drivers between £2,400 and £3,600 for the first year, plus initial fees.
The next step is insurance. Industry data estimates the average annual insurance premium for a 17 year old is £1,889, although the figure does vary depending on gender, despite legislation preventing insurers from gender discrimination. The average car insurance policy for 17-20 year old males is £2,294 and for females in £1,660.
Motoring costs can quickly soar even further once day-to-day running costs, car maintenance and the potential for accidents, speeding tickets and fines are factored in.
David Stevens, CEO of the Admiral Group, adds his comments to their Young Driver Report, saying that he wants to see more plans to help young drivers get behind the wheel, saying, “Young drivers often need to be able to drive to access the educational and employment opportunities that are vital to their future success, but the cost of motoring for young drivers can be prohibitive.”
“There needs to be much more flexibility to meet the needs of young drivers…The insurance premium tax has been cranked up repeatedly in recent years and this levy hits those who can least afford it the most, notably younger drivers, who typically pay the highest premiums. How can it be fair that an 18-year-old student must pay four or five times as much tax on top of his insurance premium than his 48-year-old father?
“A much fairer system worth considering would be a flat rate of tax, so all motorists pay the same amount regardless of the annual premium.”
Source: ADI News
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