Insurance ‘rip off’ as young drivers pay more than double

Young driver insurance premiums

New data reveals the youngest drivers pay up to 149 percent more for car insurance. The average premium, based on 750 survey respondents aged between 17 and 24, is £1,176. This compares with the national average of £471.

The survey was a part of the Young Driver Rip Off Report, supporting the launch of insurance app Honcho. It also revealed that once insurance is paid for, young drivers typically have just £77.99 left to play with every month.

Young driver insurance premiums

Perhaps unsurprisingly, 42 percent of respondents admitted they have considered downgrading to third-party cover to reduce costs. And 37 percent said they had increased their voluntary excess to keep their upfront premium down.

“With so many expenses to juggle the last thing young people need is to be faced with extortionate insurance premiums in order to be on the roads,” said Gavin Sewell, CEO of Honcho.

Motorists overpaying on insurance by £1.2billion

“However, the implications of higher insurance premiums for the younger generation go way beyond the purse strings. Many youngsters rely on being able to drive to get to and from their place of work or to meet with peers to socialise. It’s not right that they should be penalised for their age, but especially at a time when mobility is so key in their development.

“A significant percentage are also being forced to put themselves at greater risk by taking out less comprehensive cover, which could come around to sting them when trying to make a claim.”