Imagine having to fork out 8.1% more for your car insurance than you did a year ago. Ouch – that’s gotta hurt, and according to the latest research by Confused.com in their Car Insurance Price Index, it’s exactly what’s been happening to car insurance premiums in the UK. In fact, the last three months alone have seen a mammoth premium increase of 4.8%.
It’ll make young drivers’ eyes water to know that the research reveals that male drivers aged between 17 and 20 in Inner London pay the highest car insurance prices in the country, averaging a whopping £2,799. Motorists in their 60s comprise the age group facing the most significant insurance premium increases, with younger drivers affected less so, 17-year-olds seeing a 0.3% rise and 18-year-olds coping with an uplift of 2.9%.
Just because average premiums for younger drivers haven’t risen as much as they have for older motorists, they are still faced with huge premiums, the industry considering them more likely to have an accident due to inexperience and, in some cases, bravado. The Confused.com research shows that premiums for 17-year-olds average £1,916, while for 18-year-olds, the figure is £1,934.
Compared to a year ago, young women aged 17-20 have seen a year-on-year insurance premium increase of 3.5%, which equates to an extra £51. Premiums for young men have risen slightly faster, by 3.8%, and Confused.com’s data shows that a young man on average pays £503 more for an insurance premium than a young woman. The research also highlights that drivers in the Manchester and Merseyside regions of the North West pay the second-highest car insurance premiums in the country, with Inner London predictably topping the table.
With recent research from USwitch also revealing that the high costs associated with running a car mean that 53% of young people are put off applying for jobs they couldn’t get to on public transport, the landscape looks pretty tough – but Carrot Insurance has an answer.
We completely understand that the more you spend on insurance, the less you can spend on doing the things you really enjoy. As an insurance company focussed on young and new drivers, we are different, treating our customers as individuals, not statistics.
Our i-box telematics system measures things like acceleration, braking, swerving, and the number and length of journeys a customer makes. We then take this information and allocate it to three categories – Speed, Smoothness and Usage – that are then combined to give an overall Driving Style score, which gives customers the opportunity to earn cash rewards* every quarter.
Carrot’s young driver customers can earn up to 15% of their annual premium back in cash rewards*, with the average customer earning £154, which is a great remedy in the current climate of rising premiums! If you’re on Twitter or Facebook and have any questions, drop us a line and we’ll be happy to help.
* Only applicable to customers who started their policies before 5th October 2017