Young drivers spend 10% of their wages on car insurance

Published 07 February 2018

The cost of car insurance now accounts for around 10 per cent of a young driver's average salary, according to the Association of British Insurers (ABI).

This is more than five times the average of older drivers, with drivers aged 50-59 paying the lowest proportion at 1.3 per cent of their salary on average.

According to the ABI, drivers aged 18 to 21 are feeling the impact of rising motor insurance costs, caused by factors such as the current way compensation pay-outs are calculated and a resurgence in whiplash-style claims.

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There looks to be little good news on the way either with insurance premiums rising at the fastest ever recorded rate. The average premium paid in 2017 was £481.

The cost of insuring a car was by far the biggest worry for young drivers aged 17-24, with 15 per cent listing it as their number-one issue out of 23 common motoring concerns, according to RAC Insurance.

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Comments

RobJP on 6 February 2018

I recall in the late 80s, first job and earning £2.60 per hour (about £100 per week), but paying £400 insurance premiums.

So, about 1 month of my wages.

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deanm98 on 7 February 2018

In my opinion the insurance industry is backing young drivers into a corner with extortionate premiums.Yes they are at higher risk of making a claim but there should be a way of making insurance affordable so that the temptation to risk driving without cover is lessened. My son had to make a recent claim and even though he was fully comprehensive, the insurer treated him very badly and tried every angle to avoid payout. Time for the government to take a close look at industry practices, especially as the con artists have spotted the opportunity to scam desperate motorists.

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