Drivers issued £658 warning as key cost jumps 50% in just one year
The cost of car insurance has continued to rocket, putting more financial pressure on drivers as the cost of living rises.
The average cost of cover for motorists aged 17 to 24 has risen by £658 year-on-year, according to new research from Compare the Market. Car insurance for young drivers now costs £1,929 typically, compared to £1,271 in 2022 - up by around 50%.
As a result, more than seven in ten drivers aged under 25 (73%) are worried about how they will afford their car insurance policy and almost one in four young drivers (24%) have struggled to pay for their motor premium in the past six months.
Julie Daniels, motor insurance expert at Compare the Market, said: "The rapid rise in the cost of car insurance means many young drivers are finding it difficult to stay on the road. Concerningly, some are needing to cut back on seeing friends and family or expect to take on further debt to keep driving.
“It’s worthwhile for people to consider if they’re able to encourage or support any young drivers they know to look for savings online. Shopping around for a cheaper policy is one of the best ways to try and save money on car insurance. Switching to a telematics policy may also be a more affordable option for some young motorists.”
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Cut your car insurance cost
Car insurance is a legal requirement in the UK and has to be renewed yearly. The three main types are: third party, third party fire and theft, and fully comprehensive.
When the time comes to look for other quotes, you should use a comparison website to check for prices - some of the most popular ones include Compare the Market, Go Compare and Confused.com.
According to MoneySavingExpert.com, the best time to renew your car insurance is 20 to 26 days before your current policy ends. It is also worth checking quotes with some providers directly, as not all appear on comparison websites.
One of the most notable ones that doesn't appear is Direct Line. Once you’ve found the best deal elsewhere, call up your current provider to see if they will beat it.
If you do go with a new policy, you should see if you'd be eligible for cashback on sites such as Topcashback and Quidco.
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