Young people, aged between 17 and 24, could save an average of £368 on their car insurance by adding an experienced named driver to their policy, latest research shows.
The study from Compare the Market reveals the average premium for a young driver is £1,121 if they have an additional named driver on the policy.
However, without any other named drivers on the policy, the average premium for a young person is £1,489 (all named drivers need to drive the car for the policy to be valid).
Insurance a barrier for young drivers
Given the savings, over two-thirds of parents (68%) are named as additional drivers on their children’s policies to help lower the cost of their insurance.
Over eight in 10 parents (83%) think the cost of driving is too expensive for most young people to afford, and over four in 10 parents (45%) also believe that car insurance is the biggest financial challenge for young drivers, compared to 28% for fuel and 8% for repairs and maintenance.
In the past year, the cost of car insurance has increased by an average of £142 for young drivers. A typical policy now costs £1,245, compared to £1,103 last year.
Car insurance premiums have risen due to the increased value of second-hand cars and repair cost inflation. There is also more traffic since the pandemic travel restrictions were lifted.
Worth shopping around for a good deal
Julie Daniels, motor insurance expert at comparethemarket.com, said: “For young drivers, the cost of insurance can also be prohibitively expensive. Adding an experienced named driver to your policy is a legitimate way to bring the cost down as long as they also drive the car.
“Our figures show that young drivers could save more than £350 on car insurance if they add a parent or other experienced driver to their policy. However, it is essential that all information provided to your insurer is accurate.
“To help save money on car insurance, it is also a good idea for young drivers to shop around and compare policies to see if they can find a better deal. A typical young driver could save over £200 by switching.”
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