Young people have seen insurance premiums drop this year

Car insurance premiums for young drivers have been declining this year, according to new analysis.

The biggest decrease was seen in the 17-21 age group, according to car insurance comparison site Quotezone.co.uk. Drivers in this bracket have seen their premiums drop 14 per cent from 2020 into 2021, from an average of £1,173 to £1,008 this year.

The data comes from over 50,000 car insurance policies and also shows 22-25-year-olds are now paying six per cent less for their cover, falling from £833 in 2020 to £783 in 2021.

Other figures suggest new drivers in the 17-29 age group pay 53 per cent more than experienced motorists, while 17-21-year-olds pay an average of 38 per cent more than other young motorists.

For new drivers despairing at the cost of insurance, though, there is some good news with the fact that premiums drop by almost a third once they have two years of experience, assuming they have no insurance claims.

During the height of the coronavirus pandemic, driving lessons and tests were put on hold. Analysis shows this had a big effect on the number of new drivers getting on the road, with a 13 per cent fall in new young drivers in 2020. For 17-21-year-olds, the fall was more stark at 42 per cent.

Quotezone.co.uk founder Greg Wilson said he expects ‘the volume of young drivers to surge once the queue for testing settles down,’ adding: “In terms of car insurance costs, it’s welcome news that premiums for this age range have fallen – it can often be expensive given their inexperience.

“There are things brand new drivers can do to help them find the most competitive quotes though, such as choosing a car with a smaller engine, avoiding modifications, parking in a garage or on a private driveway, and opting for a telematics product which allows them to showcase their safe driving right from the get-go.”