Quarter Of Young Drivers Pay £2,000 For Cover

A quarter of young drivers are paying around £2000 for their car insurance, according to new research* by insurance comparison site Quote Goat. 

The research, which surveyed 1,000 young drivers between the ages of 17 and 24 on their perception towards car insurance, also found a minority (eight per cent) were being hit with expensive insurance premiums costing between £2,000 and £4,000.  

A third of the young drivers questioned said they had to pay up to £1,000 per annum for their insurance.

Chris Stone, 21, from the West Midlands was shocked to discover his annual insurance premium was £1,700.

He said: “I finally past my driving test in January 2018, following four failed attempts.

“Like all young drivers, I was extremely excited to have passed, but felt quickly disgruntled when I learnt the cost of my insurance.

“I live in a countryside location, where my car is always parked on a private drive, however the annual premium was still quoted at a painful £1,700.”

Chris chose to have a black box fitted to his car. The device allows insurance companies to measure things like speed and, if they are proven to drive safely, have their premium reduced.

He said: “The only way I was able to reduce this fee was by using the Black Box scheme, enabling me to save £730, with an annual premium of £970.”  

Despite it reducing insurance costs, nearly half (45 per cent) of young drivers feel unhappy in having to rely on schemes like Black Box – particularly as many come with restrictions such as driving curfews.  

Though there are negative feelings towards the devices, a massive 73 per cent of young drivers still chose to insure their vehicle with a black box.

Thanks to the device, 77 per cent saved up to £200 on their annual premium, and 14 per cent saved double that amount. 

“I’m in no way surprised to hear that over half of young drivers feel it’s unfair that we have to rely on the Black Box scheme to make insurance more affordable.

“If it didn’t reduce my costs by such a staggering amount, I would have not have signed up to it, as conditions such as the time of day or night I am allowed to drive are extremely restrictive.”  

Quote Goat’s research also found that only 13 per cent of respondents have installed an insurer approved Dashcam in their vehicle.

Just over half (51 per cent) were completely unaware it could in fact lower their insurance premium even further.  

When questioned on the recent MP debate as to whether insurance should be applied to the driver or the vehicle, young drivers posed a near even split – with 58 per cent believing it should still be applied to the driver, and the remaining 42 per cent supporting a change in law through insuring individual vehicles.  

Founder and Managing Director of Quote Goat, Michael Foote, said: “Car insurance has become increasingly expensive for Young Drivers in recent years, with many having to rely on schemes like Black Box to lower their annual premiums.  

“Despite a massive 77 per cent of participants utilising the scheme, not even a third of young drivers felt it to be fair or beneficial –implying the majority have compromised with the schemes restrictions to receive a more affordable insurance cost.

“At Quote Goat, we work hard to deliver extremely competitive quotes for Young Drivers, ensuring they understand all fundamentals that come into play with insurance costs, from pass plus schemes to choosing vehicles with less modifications.” 

This research comes following reports that insurance premiums are set to rocket in 2018, with experts predicting Young Drivers will be hit the hardest.