Young drivers looking for student car insurance are likely to spend around £4,500 to take to the roads, according to new research carried out by Co-operative Insurance.
Research based on a teenager who owns a Vauxhall Corsa worth £1,450 reveals that the young driver would have to spend an average of £2,294 on car insurance. The study then included 20 driving lessons costing £480 and two driving tests at £62 each.
The teenager will also need to take a theory test (£31), pay for road tax (minimum £30 annually) and apply for a provisional licence (£50) which adds up to at least £111.
The report shows that drivers buying their first car are younger than they’ve ever been. The average age for a motorist to buy their first car is 18 years old, four years younger than their parents’ generation.
However, it does not appear that many teenagers are self-funding the costs associated with a first car as just over half of young drivers rely on parents or relatives to help them out.
Grant Mitchell, the head of motor insurance at Co-operative insurance, said, “Unfortunately, the biggest challenge is the cost of car insurance which has risen at a disproportionate rate for young drivers because they are involved in more accidents on the roads.”
The research also revealed that the cost of car insurance has prevented 30% of the people questioned from owning a car at all. Teenagers are likely to find cheaper student car insurance by taking out a telematics insurance policy which encourages them to drive safely.