The cost of running a car for young drivers has plummeted by £536 year-on-year, primarily driven by lower fuel and insurance costs, according to comparethemarket.com ’s latest Young Drivers research.
On average, a 17 to 24-year-old driver will now pay £1,737 to run a car in the first year – the lowest annual running cost since this research began six years ago.
The cost of driving had been rising in recent years, almost to the point where it would be unaffordable for many young people.
But since the start of the pandemic, the declining cost of insurance and fuel has eradicated the increases seen in previous years, according to the research, which analyses the cost of insurance, fuel, road tax, and breakdown cover.
The dramatic decline in insurance and fuel costs in the first six months of 2021 have been caused by young drivers slashing the average annual mileage that they are insured to drive.
Young drivers are only insured to drive for an average of 3,541 miles this year, down from 7,347 miles the previous year.
As a result, a young driver's typical fuel costs have fallen to £416, dropping £453 year-on-year – despite a recent increase in the cost of petrol.
Car insurance is still responsible for more than half of overall car running costs (61%).
However, this cost has tumbled in the past year as the pandemic has reduced the number of cars on the road.
The average annual car insurance premium for young drivers now stands at £1,062.
This represents a significant £120 (10%) drop from the first half of 2020. When the typical cost of buying one of the most popular cars for young drivers is included, the total cost of getting a young driver on the road is £4,633 – a £2,145 decline year-on-year.
Despite the fall in the cost of car insurance, young drivers shouldn't be tempted to auto-renew when their policy ends.
The cheapest annual premium typically available has also dropped to £885.
This means young drivers could save an extra £178 if they shop around for a better deal rather than automatically renewing their policies.
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