Young driver insurance costs fall

Young motorists hard hit by high car insurance costs have received a welcome respite in the last few weeks, according to figures from the AA.

The cost of annual premiums for drivers aged 17 to 22 fell by 5.6% in April-June compared with the January-March period. Although annual premiums for all drivers increased 3.6% in April to June this year, this was the lowest quarterly rise for 18 months.

But even with the spring decline, the average cost of car insurance for a 17 to 22-year-old is as much as £2,294 compared with the all-age average of £924. The average premium paid by 17 to 22-year-old men is £2,872 and for women it is £1,671.

AA insurance director Simon Douglas said: “Young drivers have for a long time been the biggest losers in the insurance market with premiums driving them off the road. They share the greatest number of serious crashes, premiums have been rising at a disproportionate rate, but it seems at last that insurers are starting to compete a bit more for their business with rates starting to come down.”

Regionally, the biggest jump in car insurance premiums over the April-June period was London with a 4.8% rise to an average of £1,069. The lowest rise – 0.7% – was in the Border and Tyne Tees areas, while the most expensive place to insure a car at present is north-west England, where annual premiums average £1,521. The cheapest region is Scotland where premiums average £556.

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