Car insurance is notoriously expensive for new and young drivers, often costing a small fortune each year.
The cost of living crisis has only exacerbated this issue, with insurance premiums skyrocketing across the board, particularly impacting inexperienced drivers. In light of this, experts at Compare the Market have delved into their data to find a potential solution to alleviate some of the financial burden.
According to new research from Compare the Market, young motorists under 25 could save up to £281 on their car insurance by adding an experienced named driver to their policy. The data revealed that the average premium for a young driver with an additional named motorist on the policy was £1,859.
In contrast, without any other named drivers on the policy, the average premium for a young person rose to £2,140 a 15% increase. However, it’s important to note that all named drivers must use the car for the policy to remain valid.
The study also found that motorists aged between 25 and 34 could save up to £295 on average by adding a more experienced driver to their policy. For drivers in this age group, the typical premium was £751 if they had another named driver on the policy, compared to £1,046 if there were no additional drivers, reports the Mirror.
This equates to a substantial 39% saving on car insurance.
Motor insurance premiums have skyrocketed, hitting young motorists the hardest amidst the cost of living squeeze. Insurers are upping their prices to cover rising repair costs, with Compare the Market revealing that the average premium for drivers under 25 has leapt from £1,783 to a staggering £2,140 a hefty £357 hike.
Adding an experienced driver to a young motorist’s policy can typically reduce the cost of car insurance, as insurers consider the combined risk profile based on shared vehicle usage. However, drivers must steer clear of ‘fronting’, a fraudulent practice where the more experienced driver is falsely declared as the main user to slash premiums.
Fronting is not just frowned upon; it’s outright illegal and could lead to invalidated policies and potential prosecution for those who attempt this deceitful tactic, the Mirror reports.
Julie Daniels, the motor insurance guru at Compare the Market, commented: “Many younger drivers are likely to be struggling to stay on the road as the cost of car insurance has risen by 19% in the past year. For these motorists, adding an experienced named driver to their policy is a legitimate way to bring down the cost of insurance.”
“Young drivers could save a significant amount of money if they add a parent or other experienced driver to their policy. However, all the information given to your insurer must be accurate. Young drivers should take care to avoid fronting as it could lead to a criminal record, an unlimited fine, and six penalty points.”
“To help save money on car insurance, it is also a good idea for drivers to shop around ahead of their policy ending to see if there’s a better deal. Our figures show drivers could save up to £549 on their car insurance through Compare the Market.”
Potential savings by age group of drivers:
16-24.
£2,140.
£1,859.
£281.
25-34.
£1,046.
