Posted: Tue Dec 01, 2009 7:45 am Post subject: £5,731 – The Cost of Getting Young Drivers on the Road
Almost 13 per cent of young people aren’t driving because of the cost of insurance according to research from Gocompare.com
Newport, Gwent, December 01, 2009 -- New research from Gocompare.com reveals that on average it costs £5,731 to get a young driver on the road today, with insurance costs making up two fifths of the total bill. As a result, 13 per cent of parents say their children aren’t driving specifically because of the cost of insurance and five percent claim it has led to arguments or a falling out in the family.
A survey of 1,500 parents revealed that the financial support they give to young drivers is significant. The majority of parents surveyed (70 per cent) said that they have contributed to their offspring’s driving lessons, nearly a third (32 per cent) have paid towards the cost of a vehicle for their child, while 30 per cent have helped with car insurance costs.
Typically, learning to drive can cost in the region of £680 by the time the costs of obtaining a provisional license, lessons and test fees are taken into account. Gocompare.com’s research revealed that on average youngsters take 22.3 driving lessons before passing their test, so with driving lessons costing around £24 per hour, the typical bill for lessons alone is £536.
However, the costs of learning to drive are the tip of the financial iceberg for drivers taking to the road for the first time. Next to the cost of the vehicle itself (average £2,477) car insurance (average £2,455) is the most significant expense facing young drivers. For the parents in Gocompare.com’s survey the cost of insurance was of major concern (38 per cent). Over a quarter (26 per cent) said that insurance costs were far greater than expected, while 13 per cent had or were going to delay getting a car for their child because of the cost of insuring it.
Lee Griffin, business development director of Gocompare.com, commented: “Getting on the road represents a landmark for parents and young people alike. However, while the safety aspects are parents’ number one concern, the cost of insurance is close behind, according to our survey. There is no getting away from the fact that insurance for young drivers is expensive but all insurers treat the problem differently and therefore it is young drivers who benefit most from shopping around. Young drivers make up a high proportion of the Gocompare.com customer base so we are continuously developing our panel of insurers and specialist brokers to make sure we give them the best range of cost effective options. While the initial costs are high, the best advice in the long run is to shop around for the best price for insurance in the young driver’s own name. That way they start accumulating no claims bonus as soon as possible.”
Lee Griffin continued; “There are a number of steps parents can take to put the brakes on the cost for young drivers. The choice of car can make a dramatic difference and insuring a slightly older car on a third party, fire and theft basis could be the most pragmatic solution.”
The Gocompare.com survey also revealed that 46 per cent of the parents surveyed believed the insurance industry could be doing more to help young drivers. While 26 per cent of parents thought the premiums for young drivers accurately reflected the risk, over half believed that high premiums will lead to more young people becoming uninsured drivers. 41 per cent suggested car manufacturers could make more attractive, less powerful cars for young drivers while over a third stated that the media influenced young drivers to want fast, powerful cars.
Gocompare.com has produced the following checklist to help younger drivers keep their premiums low:
• Choose your car carefully. Generally, the lower the engine capacity, the lower the premium – ideally an engine size of less than 1250cc is best.
• Avoid vehicles with any modifications from the standard manufacture.
• Consider taking the Pass Plus training course which is designed to give, new drivers additional practical driving experience if they have just passed their test. Once completed, the course normally entitles drivers to reduced premiums. Visit the Pass Plus website for more information.
• Shop around for your insurance – don’t settle for the first quote you are given.
• Drive safely – by doing so you will avoid fines, penalties and accidents, all of which will affect your insurance premium.
For further information please contact:
Lynsey Walden or Anders Nilsson at Gocompare.com on 01633 654 055 / 01633 657 599
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Notes to editors:
£5,731 figure is based on the following: provisional licence £50**; driving lessons (22.3 lessons at £24* per lesson) £536; driving test fees - theory test £31**, practical £62**; average cost of car £2,477; car tax £120 based on a 2008 Vauxhall Corsa 1.2 litre; one year’s fully comprehensive car insurance £2,455 based on Gocompare.com’s average cheapest quote for 17 year olds.
Source: *The AA, **DirectGov
Gocompare.com launched in November 2006. It was founded by Hayley Parsons, who has worked her entire career in the insurance broking and aggregator markets, and was the first comparison sites to focus on displaying product features rather than just listing prices. It was this philosophy that led to Gocompare.com becoming the first price comparison site to be invited to join the British Insurance Brokers Association (Biba) in May 2008 and helped force older comparison sites to change their ‘quick quote’ ways and stop using assumptions to calculate estimated figures.
Today, Gocompare.com provides one of the most comprehensive online car insurance comparison services in the UK as well as comparing home, pet, motorbike, van insurance and breakdown cover.
Gocompare.com is authorised and regulated by the Financial Services Authority.
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