Research from Marmalade Insurance suggests many young people are taking a prolonged break from driving after passing their driving test, citing the high costs of insurance, car insurance premiums, and maintenance as major factors. This often leads to reduced confidence on the road when they return to driving and, in turn, may also lead to a greater number of accidents, pushing already hefty insurance premiums even higher.
The research claims that more than a quarter of drivers under 30 believe they have had an accident as a direct result of a post-test break. With 80.4% of tests being passed by learners under 30, according to the Department for Transport, this research lends some weight to the argument that high prices are harming road safety.
Go deeper with GlobalData
According to GlobalData’s 2018 UK General Insurance Consumer Survey, the average motor insurance premium for those aged 18–29 (£820) was 1.8 times the average premium for drivers aged 30+. When compared with data from the 2017 survey, average car insurance premiums for drivers in the former age bracket have increased by 26% in just one year.
While it is typically expected for newly qualified drivers to have higher premiums – given that they lack experience and are more likely to be reckless – the dramatic difference in cost for an age group that tends to have less income is problematic. It is easy to see why young people who have just passed their test might choose to wait until they are in a better financial position before splashing out on car insurance.
However, it is important to consider the many other factors that could drive young people to spend time away from the wheel. For example, data from Kwik Fit suggests that the average car maintenance cost alone (including fuel, road tax, and servicing along with multiple other factors) is £1,568 per annum. This is clearly a larger financial hit to consumers than the cost of insurance, and thus cannot be discounted from this discussion. The difference between the two costs is that maintenance is a fairly rigid one, while insurance premiums fluctuate with time. With insurance premiums increasing for this age group, you can see how that might push a fixed budget for a car beyond its limits.
Social factors could also reduce the number of young drivers on the road. Students going to university may not require or be allowed to have a car, while city workers could find that public transport is more convenient (and potentially more cost-effective) for their commute.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataOf course, a driver claiming that taking a break has caused their accident does not necessarily make it true, but there is certainly logic behind the idea that this at least contributed. While insurance providers cannot be entirely to blame for the increasing cost of insurance for young people, it is important that they do not let their prices rise too much, as higher premiums may indirectly cause more accidents. More accidents then lead to more claims, and more claims lead to higher premiums – potentially causing a vicious and dangerous circle.
