Young drivers see a £160 average drop in their car insurance premiums – study

Car insurance premiums for young motorists have seen an average year-on-year drop of £160, a new survey has found.

A poll of 2,023 drivers by Compare the Market found that motorists under the age of 25 have seen an average drop in their premiums to £1,769 in October 2024 compared to £1,929 in the same month last year.

The survey found that 75 per cent of young drivers have struggled with the costs of vehicle ownership – so falling premiums might just benefit them to a greater extent. Additionally, 31 per cent found it difficult to pay their premium in the past six months and 60 per cent plan to take on additional debt to stay on the road.

A total of 19 per cent of young drivers said that their social lives have been impacted by the cost of driving and a further 15 per cent said it has affected their jobs.

According to the data collected, the annual running costs of a car for young drivers in 2024 was £2,829 compared to year-on-year at £3,109. Car insurance now represents a total of 63 per cent of running costs for a driver under the age of 25, before fuel, road tax and MOTs.

Julie Daniels, motor insurance expert at Compare the Market, said: “Young drivers will welcome falling insurance premiums as motorists in this age group typically face higher premiums. However, motor premiums remain historically high, and many young drivers will still struggle to pay more than £1,500 for car insurance, so it is important they compare prices online before renewing with their existing insurer.”