More than half of new young drivers thought £750 would be enough for their first year’s cover. But the average cost of insurance for under-25s is £810, and that sum rises to £972 for newly qualified drivers aged 18 to 20.
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Both of these premiums are more than double the UK’s overall average annual premium, which is £367.
The research also highlighted that almost two thirds (62%) of the 500 young drivers questioned believe paying insurance premiums is the biggest obstacle to owning and running a car.
Unsurprisingly, the survey, carried out to coincide with the launch of RAC Black Box Car Insurance, showed that just over half (51%) of new drivers relied on help from their parents to cover the cost of the first year’s cover.
RAC Insurance director Mark Godfrey said: “The cost of car insurance for young and new drivers is unquestionably high due to the high cost of claims.
“But it doesn’t have to be that way with a ‘black box’ policy, which allows new drivers to prove how safe they are.
“The beauty of telematics is that it is fairer for young drivers as, rather than simply rating them in line with every other young driver, they can be judged on their own driving ability and potentially earn cheaper insurance premiums and renewals as a result.”