Tag Archives: Young Motorists

Running A Car Gets More Expensive For Young Motorists

Young Driver Keeping a car on the road has always been a costly thing to do but is particularly expensive for young drivers who tend to be faced with having to pay more for their car insurance than the more mature driver. Research by the price comparison website Compare The Market has revealed some interesting statistics in this respect.

Apparently, as at September 2018, the average annual cost of someone aged 17 to 24 running a car was £2,442. That figure has gone up in the last 6 months by an average of £60 per annum. In the last 2 years it is concerning to read that the average cost of a young motorist running a car has gone up by in excess of £140 per annum.

The average cost of a young driver insuring a car has risen to £1,324 per annum meaning that insurance costs make up over 50% of running a vehicle. Fortunately, car insurance premiums have been falling in recent months –since February 2018 premiums have dropped by an average of not far off £24 per annum.

Another factor that has added to the increase in the cost of running a car is the increase in fuel prices that we have seen at petrol stations here in the UK. In the space of 12 months this has risen by an average of 9.9% to £891 per annum.

Other things taken into account in the average cost of running a car are Road Tax at £115, breakdown cover at £56 and MOT at £54.

The 5 most popular cars owned by young motorists are: –

  1. Vauxhall Corsa
  2. Ford Fiesta
  3. Volkswagen Polo
  4. Renault Clio
  5. Volkswagen Golf

It was found that the cheapest car to insure by a young motorist was the Dacia Sandero at an average of £882 per annum. As you can see, this is significantly lower than the average cost of insurance. This was closely followed by the Fiat 500 at an average of £898 per annum to insure.

It should be borne in mind that the above figures do not take into account young drivers who need to arrange finance to fund the purchase of a vehicle. The monthly outlay in this respect can be quite significant.P Plates

The motor insurance market is extremely competitive here in the UK with numerous insurers providing cover ranging from standard car insurance to telematics cover and even pay per mile insurance. Unfortunately, not enough people bother to shop around for their cover such as when they receive their renewal notice from their existing insurance company. If they did then some may find that they could have got the same level of suitable cover but for a lower premium.

So, if you are looking for car insurance either for the first time or if your existing policy is coming up for renewal, why not get in touch with us here at AIB Insurance on 02380 268 351 and speak with a knowledgeable member of our team who will discuss your requirements and obtain a competitive quotation from our extensive panel of insurers for your perusal without any obligation.

Cost Of Car Insurance Has Been Increasing

Increasing Cost Of Car InsuranceUnfortunately, for many motorists, the cost of insuring their cars has been on the increase for quite some time as insurers have raised their premiums for a number of reasons. This is borne out by the Confused.com car insurance price index covering the second quarter of 2016.

The above index reveals that the average cost of fully comprehensive car insurance rose an average of 19% when compared with the second quarter of last year. The average premium for this level of cover in Q2 of 2016 stood at £715 per annum. You have to go back to Q2 of 2011 before you will find a larger year-on-year % increase when premiums rose by 25%.

When you compare the cost of insuring your car with this type of cover between Q1 and Q2 of 2016, premiums have gone up by 6% in the space of 3 months with this equating to a monetary increase in premiums of an average of £44 per annum.

Looking at premiums on a regional basis, it is Northern Ireland that has seen the biggest annual increase with a rise of 25% in the 12 months to the second quarter of 2016. In that quarter, Motorists in that part of the UK were paying an average of £863 per annum. Those motorists living in Inner London pay more on average for their comprehensive car insurance than any other UK region – £1,164 per annum. Motorists in the South West saw their premiums rise by an average of 20% in the 12 months to Q2 of 2016.Increasing Cost Of Car Insurance

However, on the positive side, motorists living in Kirkwall in the Orkney Islands and Hereford saw their premiums drop by average of 4% and 2% respectively.

Interestingly, it is the young motorist who has seen the smallest annual rise in premiums with 17 year olds paying, on average, an extra 8% when comparing Q2 of 2015 with Q2 of 2016. A 61 year old has seen premiums rise by an average of 24% over the same period. Having said that, a 17 year old would pay an average of £2,103 per annum for their cover whereas a 61 year old would only pay an average of £418 per annum.

So, if you have just received your car insurance renewal notice or are shortly to do so, you may wish to shop around to see if you can get a better deal on your cover elsewhere. In this respect, why not get in touch with us here at AIB Insurance on 02380 268 351 and speak with an experienced member of our team who will endeavor to obtain a competitive quotation for car insurance for your consideration.