The price of operating a automobile for younger drivers is at its least expensive stage in almost a decade because of a drop in insurance coverage and gasoline costs

  • On common, younger drivers will now pay £2,074 to run their automobile within the first yr 
  • The common automobile insurance coverage premiums for younger drivers total is now £1,095 
  • A lower within the worth of insurance coverage and gasoline is the explanation for the drop  
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The price of operating a automobile for younger drivers fell £296 yearly, new analysis has revealed.

On common, a driver below 24 will now pay £2,074 to run their automobile within the first yr – the most cost effective annual operating price since 2015, in line with information from Evaluate the Market.

A lower in gasoline costs and insurance coverage prices, primarily because of fewer vehicles being on the highway throughout the pandemic within the final yr, have been given as the explanation for the plunge.

In the meantime, the typical automobile insurance coverage premiums for younger drivers total is £1,095, the most cost effective determine since 2012.

The cost of running a car for young drivers is at its cheapest level in years due to the pandemic

The price of operating a automobile for younger drivers is at its least expensive stage in years as a result of pandemic

The analysis in contrast the costs of operating a automobile for younger drivers from November 2019 to January 2020 to November 2020 and January 2021. 

It discovered the price of driving had been rising lately, approaching a degree the place it could have been unaffordable for a lot of younger individuals.

Nonetheless, over current months, the drop in the price of insurance coverage and gasoline has balanced out the will increase seen in earlier years.

Automobile insurance coverage continues to be accountable for 53 per cent of total automobile operating prices however this price has declined dramatically within the final yr because the pandemic has decreased the variety of vehicles on the highway.

The common automobile insurance coverage premium for younger drivers now stands at £1,095, representing a £169 – equal to 13 per cent – drop year-on-year and the bottom common price since Evaluate the Market’s analysis started 9 years in the past. 

The most affordable premium out there to younger drivers has additionally fallen by £113 year-on-year to price a mean of £918.

COST OF RUNNING A CAR FOR 17 TO 24 YEAR OLDS (NOV 2020 TO JAN 2021)
Price title Price % of complete price
Insurance coverage £1,095 53%
Gas £763 37%
Est. VED (Street Tax) £125 6%
MOT £55 3%
Breakdown cowl £36 2%
Whole price per yr £2,074 100%
Supply: Evaluate the Market   

This implies younger motorists may usually save a further £177 by switching to the perfect deal when their coverage comes up for renewal.

As well as, annual gasoline prices have plunged in current months as the worth of petrol has fallen and motorists anticipate to drive fewer miles in 2021.

A typical younger driver will now spend £763 on gasoline, driving a mean of seven,347 miles over the course of a yr.

This price has dropped from £884 at first of 2020 when the typical younger motorist drove for 7,480 miles.

Regardless of these financial savings, separate analysis from Evaluate the Market final yr, discovered that 47 per cent of younger drivers with a full or provisional driving licence mentioned the monetary affect of coronavirus made it tougher for them to afford the operating prices of their automobile.

CHEAPEST CARS FOR YOUNG DRIVERS TO INSURE 
Mannequin Common Premium Common Worth
Volkswagen Up! £636 £4,542
Citroen C1 £704 £2,764
Peugeot 108 £705 £4,553
Hyundai i10 £719 £3,670
Fiat 500 £723 £4,082
Ford Ka £745 £2,207
Vauxhall Adam £747 £5,409
Kia Picanto £762 £3,145
Toyota Aygo £775 £3,825
Peugeot 107 £776 £1,585

Though motoring prices are down for now, the broader financial affect of the pandemic on youthful generations means many are nonetheless feeling the pinch.

Dan Hutson, head of motor insurance coverage at Evaluate the Market, mentioned: ‘Younger individuals will likely be relieved that the price of driving has fallen so dramatically and this may hopefully ease a number of the monetary pressure many are below.

‘With younger drivers paying the very best insurance coverage premiums, the current drop in costs ought to forestall insurance policies from turning into prohibitively costly however the greatest financial savings will solely be out there to drivers who store round for the perfect deal.

‘Younger drivers must also keep in mind to talk to their insurer if their present or anticipated mileage has decreased as a result of pandemic, to see if a discount in premium is feasible, and discover whether or not a telematics primarily based coverage might be cheaper for them.’

Motorists are additionally set to expertise greater gasoline prices than they had been paying earlier than the present lockdown measures had been put in place, with pump costs surging on the again of oil growing at first of 2021.

Latest figures show that petrol is 7.5p-a-litre more expensive than it was in December and consultants have predicted it should proceed growing over the approaching months.

Is it time for graduated driving licences? 

There are renewed requires the Authorities to introduce graduated driving licences as a technique of lowering the variety of crashes involving new drivers. 

The Commons Transport Choose Committee mentioned there’s proof that such licences might be ‘efficient in lowering crash charges’. 

The licences would imply motorists who’ve lately handed their exams will  have harder restrictions for a sure time interval.

This might embrace not being allowed to hold passengers, having to abide by a curfew, decrease alcohol limits and necessary P plates.

They’re utilized by a number of nations together with the US, Canada, Australia and Sweden. 

Earlier calls to introduce the licences had been squashed in October final yr as a result of have an effect on not having a driving licence may make on younger individuals’s employment possibilities. 

This implies the one particular remedy for brand spanking new drivers is that they lose their licence in the event that they obtain six penalty factors inside the first two years, slightly than the usual 12 factors.

Talking in regards to the requires graduated licences to be reconsidered, RAC highway security spokesman Simon William mentioned: ‘Youthful drivers are over represented in severe highway casualty statistics, so there’s clearly extra that may be performed to enhance highway security. 

‘Whereas some kind of graduated driver licensing may undoubtedly carry advantages, there are additionally alternatives to enhance the present system. 

‘A minimal studying interval and an finish to intensive programs may assist guarantee new drivers are higher ready as soon as they cross their exams. 

‘Encouraging the take-up of telematics-based insurance coverage insurance policies may play an important position as soon as drivers cross their sensible exams as they’re very efficient at positively influencing driver behaviour.’

SAVE MONEY ON MOTORING

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