Posted: Fri Oct 07, 2011 5:22 pm Post subject: The Co-Operative Offers Young Drivers A Way To Cut The Cost
The Co-Operative Offers Young Drivers A Way To Cut The Cost Of Driving
Released on: October 7, 2011, 4:45 pm
Author: Lauren Hoult
The average cost of getting onto the road for the first time is now £4,459, according to new research by The Co-operative Insurance.
This includes the total cost of driving lessons, road tax, driving tests and insurance, in addition to buying a first car.
According to data, the average 18-year old owns a Vauxhall Corsa worth £1,450 and will have to pay more than £2,000 for insurance alone. They will also have 20 driving lessons at a cost of £480, sit two driving tests to the tune of £62 each, plus will fork out £111 on a provisional licence, theory test and road tax.
The average cost of becoming a motorist, according to The Co-operative Insurance Item Cost*
First car £1,450
Provisional licence £50
Driving lessons £480
Driving test(s) £124
Theory test £31
Road tax £30
However, despite the high costs of getting on the road, the research also shows today’s new motorists buy their first car younger than ever, with the average person now owning their first set of wheels at just 18 years old, which is four years before their parents’ generation did at age 22.**
And while more than three quarters of those aged over 45 (77%) bought their first car themselves, the same can’t be said for their offspring, with the majority (53%) of 17 to 25 year olds now relying on their parents or relatives to cough up the cash.
Grant Mitchell, Head of Motor Insurance at The Co-operative Insurance, said: “Our research shows that although today’s young drivers own their first car from an earlier age than their parent’s generation, the cost of actually getting on the road is huge.
“Of course, not many 18 year olds have thousands of pounds in savings, so increasingly they are relying on the ‘Bank of Mum and Dad’ to pay for the initial cost of driving.
“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 insurance is one of the main reasons why people don’t buy a car, with 30% citing it as the reason they remain without their own set of wheels.
The survey of 3000 road users was carried out to mark the launch of The Co-operative Insurance’s Facebook page, which is offering young drivers the chance to win a year’s free ‘Young Driver’ insurance.
The Co-operative Insurance has a specific Young Driver product, aimed at helping drivers between the age of 17 and 24 to reduce their insurance premiums through responsible driving. While The Co-operative Magazine offers safe driving tips, and moneysaving tips for teens to help with budgeting and for those thinking of buying a new car.
Research carried out by onepoll.com, with a population of over 3,000 respondents *costs calculated as follows:
£1,450 - Vauxhall Corsa is most common car for 17-25 year olds, according to data from The Co-operative Young Driver insurance. Cost based on average price of used Vauxhall Corsa on Autotrader.co.uk
£2,294 - average premium for 17 – 22 year olds sourced from AA British Insurance Premiums Index, 28 July 2011
** Parents refers to respondents in the over 45 age group category
*** Facebook page available at http://www.facebook.com/#!/pages/Co-operative-Insurance/100937979947798.
About The Co-operative Banking Group:
The Co-operative Banking Group, formerly known as The Co-operative Financial Services, is the banking and insurance arm of The Co-operative Group, which is the world’s largest consumer co-operative with around six million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care. The Co-operative Group has over 5,000 retail trading outlets.
Following the merger with Britannia on 1 August 2009, the organisation is one of the largest and most highly diversified mutual businesses operating in both retail and corporate banking markets.
As part of The Co-operative Group, the business is characterised by its unique ethical and member reward policies and very high levels of customer advocacy.
The Co-operative Banking Group has £70 billion in assets, 12,000 staff and nine million customers. It has over 300 high street branches, 20 corporate banking centres and major presences in Manchester, Leek, London, Plymouth, Skelmersdale and Stockport.
It is the only mutual organisation that enables its members to earn financial rewards for the products they hold, as well as giving them the opportunity to have a say in how the business is run.
For more information, please contact:
Lauren Hoult, Press Officer - Retail
The Co-operative Banking Group
10th Floor, Miller Street
Manchester M60 0AL
t: 0161 903 3822
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