Average cost of car insurance for 17-year-old who has just passed test hits £3K

05 June 2024 , 11:24

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The increase in the cost of car insurance could make driving 'prohibitively' expensive for teenagers, says Julie Daviels from Compare the Market (Image: PA Archive/PA Images)

A 17-year-old who has just passed their driving test is now looking at an average insurance cost of £3,075, according to data from a website.

This marks an increase of £1,071 from last year's typical car insurance cost for a 17 year old, which stood at £2,004, according to Compare the Market. The website's comparison was based on quotes from March 2024 and March 2023, generated from its customers' searches.

The research also found that insurance quotes tend to be lower for slightly older new drivers. For instance, a 22 year old fresh pass would typically face a premium of £2,503, while a 27-year-old in the same situation would be looking at around £1,986. Across all age groups, the average cost of car insurance for a driver with a provisional licence was £726, but this figure jumps to £2,731 once the driver passes their test and obtains a full licence.

The reason for this spike is that insurance becomes more expensive when drivers are no longer supervised by an experienced driver. However, the cost of car insurance drops by £771 after a motorist has gained a year of driving experience, the website noted.

Julie Daniels, a motor insurance expert at Compare the Market, commented: "The significant increase in the cost of car insurance could make driving prohibitively expensive for lots of teenagers. Newly-passed 17-year-olds must now pay more than £3,000 on average for their first year's car insurance. This will put substantial strain on their or their parents' finances."

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"However, premiums for new motorists with no claims should then hopefully fall in subsequent years. As the cost of car insurance continues to increase, it may force some potential young motorists to delay learning to drive.

"For those eager to get on the road sooner, choosing a telematics policy may be a good option for some young motorists, whose premium could be reduced if they demonstrate they are a safe driver."

Lawrence Matheson