The average car insurance premium for drivers aged under 25 has risen by £658 to £1,929, new data has shown.
The cost of the typical annual car insurance premium for this age group has risen by 52 per cent year-on-year which means that many drivers are now becoming more concerned about the affordability of cover.
Data from Compare the Market shows that the average annual premium now stands at £1,929 – up from £1,271 in 2022 – with a survey of 2,021 drivers showing that more than seven in ten are worried about how they will afford their car insurance policy.
Close to one in four drivers aged under 25 have struggled to pay for their insurance at some point during the last six months, too, while nearly six in ten expect to take on additional debt – such as through loans or credit cards – to pay for their cover.
Julie Daniels, motor insurance expert at Compare the Market, said: “The rapid rise in the cost of car insurance means many young drivers are finding it difficult to stay on the road. Concerningly, some are needing to cut back on seeing friends and family or expect to take on further debt to keep driving.
“It’s worthwhile for people to consider if they’re able to encourage or support any young drivers they know to look for savings online. Shopping around for a cheaper policy is one of the best ways to try and save money on car insurance. Switching to a telematics policy may also be a more affordable option for some young motorists.”
Three in ten young drivers say that they don’t earn enough to cover the increased cost of driving, while 13 per cent have said that the rising costs associated with keeping a car on the road have impacted their work life. If costs continue to rise, more than one in four say that they don’t think they’ll be able to afford to keep their car running.