By Young drivers are forking out close to a fifth of their annual wages on car insurance, new research has revealed.
Drivers aged 17-20 are being hit with average insurance costs of £2,499 for comprehensive car insurance, a figure which is 18% of the average annual income [£13,972] for that age group. Young men bear the brunt of these spiraling costs, with an average £3,635 cost for premiums in comparison to young women [aged 17-20], who pay £1,869.
While young drivers are being priced out of driving with insurance costs in the thousands, older drivers are enjoying a golden retirement with slender premiums. On average, drivers aged over 71 are paying just £436 a year, more than eight times less than the fees boy racers face.
Older drivers pay significantly lower premiums due to a combination of driving experience, shorter distances to travel and a general preference lower-powered cars, despite the fact that age reduces reaction speeds.
"Each age group is costed by their statistical risk and this includes the value of the car itself, the experience levels of the driver, past history and where they live among other factors, said Gareth Kloet, Head of Car Insurance at Confused.com, which carried out the research.
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Age
|
Average cost of car insurance Q1 2012
|
|
17-20
|
£2,499
|
|
21-25
|
£1,411
|
|
26-30
|
£915
|
|
31-35
|
£679
|
|
36-40
|
£597
|
|
41-45
|
£674
|
|
46-50
|
£733
|
|
51-55
|
£680
|
|
56-60
|
£533
|
|
61-65
|
£446
|
|
66-70
|
£440
|
|
71+
|
£436
|
