Insurance company news
21/09/2011
Cheap car insurance is rare due to spiralling costs
Finding cheap car insurance in the UK, at present, seems to be more difficult than ever as, according to research carried out by a top insurance company, the average cost of getting onto the road for the first time has risen to £4,459.
In order to arrive at this total the costs of driving lessons, driving tests, road tax, insurance, and the expense of the driver's first car were all taken into account.
The research has shown that an average 18-year-old who drives a car worth £1,450 will have to pay about £2,294 to have the car insured.
Furthermore, that driver will, on average, have 20 driving lessons giving an outlay of £480, two tests which are £62 each, and spend £111 on road tax, theory test, and the provisional licence altogether.
The head of motor insurance at the firm stated, "Our research shows that although today's young drivers own their first car from an earlier age than their parent's generation, the cost of actually getting on the road is huge."
He went on to say that the cost of motor insurance for young drivers is especially high because they have more accidents on the roads causing insurance to rise at a disproportionate rate.
The Office of Fair Trading is doing some research into why cheap car insurance is so difficult to find and why motor insurance premiums are rising so quickly. It is then going to consider whether any changes are needed to improve the way the market works.