The cost of running a car for young drivers has plummeted by £536 year-on-year, primarily driven by lower fuel and insurance costs, according to comparethemarket.com’s latest Young Drivers research.
On average, a 17 to 24-year-old driver will now pay £1,737 to run a car in the first year – the lowest annual running cost since this research began six years ago.
The cost of driving had been rising in recent years, almost to the point where it would be unaffordable for many young people. But since the start of the pandemic, the declining cost of insurance and fuel has eradicated the increases seen in previous years, according to the research, which analyses the cost of insurance, fuel, road tax, and breakdown cover.
The dramatic decline in insurance and fuel costs in the first six months of 2021 have been caused by young drivers slashing the average annual mileage that they are insured to drive. Young drivers are only insured to drive for an average of 3,541 miles this year, down from 7,347 miles the previous year. As a result, a young driver’s typical fuel costs have fallen to £416, dropping £453 year-on-year – despite a recent increase in the cost of petrol.
Car insurance is still responsible for more than half of overall car running costs (61%). However, this cost has tumbled in the past year as the pandemic has reduced the number of cars on the road. The average annual car insurance premium for young drivers now stands at £1,062. This represents a significant £120 (10%) drop from the first half of 2020. When the typical cost of buying one of the most popular cars for young drivers is included, the total cost of getting a young driver on the road is £4,633 – a £2,145 decline year-on-year.
Despite the fall in the cost of car insurance, young drivers shouldn’t be tempted to auto-renew when their policy ends. The cheapest annual premium typically available has also dropped to £885. This means young drivers could save an extra £178 if they shop around for a better deal rather than automatically renewing their policies.
These savings will be particularly beneficial as the wider economic impact of the pandemic on younger people means many are still feeling the pinch. The latest Household Financial Confidence Tracker from comparethemarket.com shows more than a fifth (23%) of 18–24-year-olds struggled to afford bill payments and financial commitments in recently.
To calculate how much driving is likely to cost, new motorists can use comparethemarket.com’s Young Drivers Tool. The online tool also offers suggestions on the most effective ways for drivers to cut the cost of car insurance.
Cost of running a car for 17 – 24 year olds (Jan 21- Jun 21)
|Cost name||Cost||% of total cost|
|Est. VED (Road Tax)||£180||10.4%|
|Total cost per year||£1,737||100%|
Ursula Gibbs, director at comparethemarket.com, said: “Following lockdowns and working from home, many young motorists have drastically reduced how many miles they will drive this year. These young people will be comforted that the cost of driving has fallen as a result. The steep drop in costs will hopefully ease some of the financial strain many young people are under – and prevent driving from becoming prohibitively expensive.
“However, paying for insurance remains by far the biggest running cost for young drivers. One of the best ways to cut this cost is to avoid the trap of auto-renewing. Motorists may lose out by choosing to auto-renew their policy if the price given by their insurer is roughly the same or slightly cheaper than last year. Our figures show there are greater savings to be had by shopping around. Young motorists could typically save £178 by searching for a better deal when their policy ends. This substantial saving could be put towards nights out, restaurant meals or festival tickets, allowing young people to make the most of life post-lockdown.
“When buying car insurance, young motorists should try to be as accurate as possible when providing their expected mileage for the year. If a motorist underestimates their mileage and needs to make a claim, it could invalidate their policy and their insurance provider could refuse to payout. If drivers overestimate their mileage, they may be paying more than they need to for their premium.”
Most Popular Cars for 17-24 year olds in 2021
|Model||Average Premium||Average Value|
|Ford Fiesta Zetec||£972||£2,227|
|Fiat 500 Lounge||£651||£4,082|
|Ford Fiesta Zetec (80)||£815||£4,623|
|Vauxhall Corsa SXI||£1,066||£2,061|
|Vauxhall Corsa Limited Edition||£1,031||£2,844|
|Fiat 500 Pop||£662||£2,950|
|Peugeot 107 Urban||£769||£1,252|
|Ford Fiesta Zetec Climate||£1,009||£981|
Court grants Police 36 hour extension to detention of three held for Bridgend baby death investigation
Ryanair to offer more flights through Cardiff next year
Working on Christmas Day is like being with a ‘second family,’ say Wales Air Ambulance frontline staff
‘That colliery holds our history’: Council aims to change the fortunes of the Cefn Coed Colliery Museum
Briton Ferry primary school welcomes donation from Amazon
Joe’s Ice Cream plants 100 trees to rejuvenate local green areas
Celebrity chef James Martin turns up the heat with a brand new 2023 tour visit to Swansea Arena
Castell Howell serves up sustainable menu at Nuffield dinner
Three arrested after bodies of two babies found in Bridgend
Rob Page: ‘We can’t sit and cry over Iran loss’
Free bus travel returns to Swansea for Christmas
Date set for Llanelli Christmas Carnival and lights switch-on
Street pianos to bring music and colour to Swansea’s streets
Four Pembrokeshire women to take on ‘world’s toughest row’
Brynhyfryd pub gets brand new look in time to celebrate World Cup
UWTSD to host Cerebra families during Swansea Christmas Parade
Gavin & Stacey star Ruth Jones says getting honorary doctorate from Open University was ‘tidy, lush and crackin’
Swansea set to host football World Cup Fan Park
Swansea Christmas Parade: What you need to know for this Sunday’s event
Christmas multipack Coke recalled as packing error means some zero sugar packs have regular cans included
Christmas7 days ago
Morriston community groups supply festive fun for heritage event
Gorseinon7 days ago
Gorseinon GP warns antibiotics may do more harm than good against seasonal viruses
Swansea7 days ago
Martin Nicholls named as Swansea Council’s new Chief Executive
Business4 days ago
Carmarthenshire logistics company celebrates 50th anniversary by holding a family fun day in aid of Wales Air Ambulance
Photography5 days ago
Swansea man wins Historic Photographer of the Year competition
UK Government7 days ago
Liberal Democrats table bill to give Wales the power to create Bank Holidays
Fostering & Adoption7 days ago
Swansea 10 year-old wins national fostering award
Business4 days ago
International consortium on board to deliver Swansea renewable energy project