Young drivers are spending 18% of their salary on covering the cost of their car insurance, a recent study from Confused.com/ Tower Watson Car Insurance has revealed. On average young drivers are paying £2,499 a year for car insurance which equates to 18% of the average salary for those aged between 17-20 years.
When the statistics are investigated more closely, it shows that there is a definite gender divide as the cost of the average insurance policy for a young male driver is £3,635 compared to the average cost of car insurance for a year for a young female driver which is £1,869, almost half the price of their male counterparts.
Using the figures for insurance for male drivers, the percentage of the average wage which is being spent on car insurance is even higher, with 25% of the average salary of a young male being spent on cover, and this doesn’t even take into account fuel and repair costs on top.
According to figures from the Office of National Statistics, the average wage for those working full time aged between 17- 20 years is £13,972, which means that a large chunk of their salary is being spent on car insurance.
While the figures for car insurance for young people seem alarmingly high, the cost of cover for young drivers has actually decreased recently. Statistics show that car insurance for young motorist hit a peak in the three months between April – June 2011 when the average cost was £2,689, however the first three months of 2012 showed that the cost of cover had been reduced by £150.