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Young drivers face having to pay insurance premiums at twice the price offered to other motorists, according
to research by uSwitch.com. They are being warned to scour the whole market for quotes before investing in a car.
Despite making up only 7 per cent of the car insurance market, drivers aged between 18 and 25 represent 22 per cent of overall premiums. They pay 940m more than other motorists.
The average young driver will pay 989 a year for a policy, compared to the national average "shoparound" premium of 459.
The disparity becomes even more marked if they have their eyes on a fast set of wheels. With a Peugeot 206 GTI, for example, the premium could rise by 4,000.
Buying a sporty second-hand car and keeping it in a high-risk area is another financial no-go. A Golf GTI, for example, costing less than 5,000 to buy, could set the driver back by up to 14,600.
Car insurance prices have increased by 122 per cent from an average premium of 307 in 1998. If this trend continues, the young drivers will have to fork out up to 2,196 annually by 2018.
(c) 2008 Independent on Sunday, The. Provided by ProQuest Information and Learning. All rights Reserved.
Car Insurance News: Pounds 1,000 a Year - the Price of Motor Premiums If You're Under 25...Get an auto insurance quote!