Personal Finance

Insurance warning for young drivers

Young motorists have been warned of a sharp increase in car insurance costs over the coming months.

According to a report by Mazars, annual premiums could shoot up by 50%. For a young adult, the motoring premium is likely to go up from £2,400 a year to £3,600.

The accountancy firm said people living in rural areas could bear the brunt of the possible hike, as many will struggle to afford motoring costs.

It could also result in an increase in the number of young motorists driving uninsured or providing wrong information to cut the cost of insurance.

The rises may also prompt young drivers to opt for riding motorcycles, where fatality rates are much higher than with four-wheelers, the company said.

Craig Scarr, an insurance industry partner at Mazars, said: "We are already seeing younger adults are being priced out of car ownership and cannot afford it, and this will hit even harder over the next year as a typical premium for a young adult rises from £2,400 currently to over £3,600.

"The insurance industry needs to look at innovative ways to allow young drivers to get affordable insurance, while penalising boy-racers."

Sam Jackson

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