Fears teenagers will drive with no car insurance as cost of premiums soar
Soaring car insurance costs have raised fears young motorists will not get cover – or buy illegal ‘ghost insurance’ policies.
Alarming new figures show prices rose 50% last year, with the average cost of premiums for under-25s reaching £1,792 in August compared to £1,198 in 2022. A quarter of 18 to 24-year-olds currently pay more than £800 for insurance.
And the Motor Insurers’ Bureau – which helps police identify uninsured vehicles – says the high cost of cover could result in more people driving without insurance.
There are also concerns young drivers could be pushed towards ghost brokers online. These scammers pretend to be from real insurance companies and claim to offer cheaper deals.
Drivers aged 17-19 account for 12 percent of serious crashes (Getty Images/iStockphoto)One young driver who has felt the impact of rising costs first-hand is Anika Maini. The 17-year-old was initially quoted more than £4,000 for cover on a 1.0-litre Volkswagen Polo, so she shopped around.
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She eventually got the quote down to £2,100 with a black box, which will record her driving. Anika, from Bolton, said: “I know everyone’s insurance is going up, but young drivers are being hit the hardest. Soon, people my age won’t be able to afford to drive.”
The Association of British Insurers blames the soaring costs on young drivers being high risk. The average claim for 18-20-year-olds cost more than £5,000 in 2021. While drivers aged 17-19 make up just 1.5% of licence holders, they account for 12% of serious crashes.
Mirror writer Amanda Killelea was stunned to learn what she would have to pay to insure her children on the roads.
She says: “Two years ago, my eldest daughter Gracie, now 19, passed her driving test and I managed to get her insured on a five-year-old 1.0-litre Audi for just over £1,000. Last week, her sister Lola, 17, passed her test too. I got the shock of my life when I was told that many insurers would not even touch her, and the first quote I got was £7,000.”
Amanda Killelea (Daily Mirror/Andy Stenning)“After hours of ringing around, hitting my laptop, adding my husband as an additional driver and changing the start date of her policy, I managed to get it down to a still eye-watering £4,200 per year – with a black box fitted in her car.”
And Amanda, from Rossendale, Lancs, cannot fathom why the cost of insurance has quadrupled for a new driver in the same make and model of car in less than two years. She added: “Most of Lola’s friends or their parents are paying £3-4,000 a year for policies too.”
Tips to save on cover
1. Shop around. Compare quotes from different insurers and check coverage.
2. Fit your car with an alarm or immobiliser, or park in a garage overnight. It may result in a discount.
3. Opt to pay a higher voluntary excess and reduce your mileage.
4. Pay your policy in full. It is often cheaper than choosing instalments.
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5. Go for a car with a small engine.
6. Get a black box fitted. GPS data on driving habits may reduce premiums.
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