As well as the cost of a car and fuel, it’s no secret that one of the biggest expenses for young drivers to contend with is insurance.
According to the AA, average premiums for male drivers aged 17 to 22 are more than £3,500, while young women in the same age bracket face average bills of almost £2,300.
With a vast proportion of young people in this demographic in full-time education or just starting out in a job, parents are increasingly having to pick up the bill.
‘Bank of mum and dad’ covering costs
Recent research by Aviva found that around 20% of young drivers in the 1960s had their car bought for them. Fast forward to today and the figure stands at 33%, showing just how difficult it is for young people to become financially independent of their parents.
When all factors are taken into consideration, a child’s first year of driving can cost their parents as much as £8,000.
And it’s not just driving costs – many children require their parents’ help to buy a house, while a study by LV= found that a number of 40 year-olds still holiday with their parents as they can’t afford to travel independently.
‘Black box’ car insurance – the solution for young drivers?
A recent advancement in the car insurance market has been that of telematics policies.
By having a small device – known as a ‘black box’ – fitted to your car which then uses satellite technology to track your miles, drivers and insurers are able to monitor driving behaviour online.
The technology tracks things like acceleration, braking, cornering, and journey time, enabling insurers to take these factors into account when working out the cost of premiums.
With statistics showing that young drivers are more likely to have accidents and make insurance claims than any other age group, drivers under the age of 25 are likely to benefit most from black box policies – as well as the parents coughing up for the cover.