Personal Finance

Young driver insurance costs fall

New figures released by the AA have shown a 5.6% drop in annual car insurance premiums for motorists in the 17-22 age group to £2,294 in the second quarter of this year, compared with the first three months.

Men aged 17 to 22 pay an average premium of £2,872, while women in the age group pay £1,671.

Simon Douglas, AA insurance director, said: "Young drivers have for a long time been the biggest losers in the insurance market with premiums driving them off the road.

"They share the greatest number of serious crashes, premiums have been rising at a disproportionate rate, but it seems at last that insurers are starting to compete a bit more for their business with rates starting to come down."

The average cost of annual car insurance premiums for all motorists reached £924 in the three months ended June, up 3.6% over the first quarter - the lowest increase for 18 months.

Sam Jackson

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