Concerns have been raised that driving is becoming increasingly unaffordable for young people as research shows running costs continue to rise each year. In the past year, the cost for drivers aged 17-24 rose by an average of £385 with the primary reasons being higher fuel and insurance costs.
The figures were given as part of Comparethemarket’s latest Young Drivers research which analyses the cost of insurance, fuel and road tax. The results show that on average, a 17- to 24-year-old motorist will now pay £2,448 to run a car for a year - which the price comparison site says is the highest figure since this research began.
The typical annual fuel cost for a young motorist has increased by £244 in 12 months, rising from £748 to £992. Car insurance is responsible for half of the overall running costs (50%) for young drivers, who typically pay the most compared to other age groups.
The average annual premium for a motorist aged between 17 and 24 now stands at £1,236. This represents a significant £141 (13%) jump year-on-year due to the rising cost of repairing or replacing vehicles and the higher value of second-hand cars.
Cost of running a car for 17- to 24-year-olds (Feb 22 – Jul 22)
Cost name |
Cost |
% of total cost |
Insurance |
£1,236 |
50% |
Fuel |
£992 |
41% |
Est. VED (Road Tax) |
£165 |
7% |
MOT |
£55 |
2% |
Total cost per year |
£2,448 |
100% |
The increase in costs raises concerns that many young people do not earn enough to be able to afford to run a car independently. Separate research from Comparethemarket found that 76% of young drivers said that their pay is not high enough to cover the rising cost of driving.
Julie Daniels, motor insurance expert at Comparethemarket, said: "The rising cost of running a car among other soaring household bills mean that many young drivers could struggle to afford staying on the road and may impact their ability to get into work or see friends and family. It is even more challenging once other costs such as parking fees, breakdown cover, and car maintenance are considered."
Comparethemarket suggests that young drivers can substantially reduce their car running costs by shopping around for a cheaper deal on their car insurance. The cheapest annual premium typically available costs £978.
It says young drivers can save an average of £258 if they switch to the cheapest premium when their policy ends. Switching to a telematics policy could also help them save money on their insurance.
Julie Daniels adds: "As the cost of car insurance for young people has jumped by nearly £150 in the past year, it’s more important than ever to shop around and compare policies to see if there is a better deal available. Switching to a telematics policy may be a good option for some young motorists.
"A quick and easy way to find a great deal ahead of your renewal is to sign up to automated car insurance renewal quotes from Comparethemarket, which will automatically notify you that your policy is about to end and highlight any available deals.”
