The cost of car insurance for young people has plummeted to the lowest figures seen in six years due to a 'blip'.
Car insurance for 17 to 24-year-olds has plummeted by £536 year-on-year, due to lower fuel and insurance costs, findings from comparethemarket.com show.
On average, young drivers will now pay £1,737 to keep a car on the road in the first year, which is the lowest annual running cost since the insurance comparison website began its research in 2015.
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Insurance makes 61% of that total, at £1,062, but the cost has dropped by £120 year on year.
However, the fall in price is likely to be a blip linked to the pandemic and young drivers still face the highest premiums of any age group.
The drop in premiums is likely due to how little people have been driving since the start of the pandemic, consumer watchdog Which?, said.
They said: "Under the first Covid-19 lockdown, some – though not all – insurers offered customers rebates to reflect the fact that they were not on the road as much as they had estimated when their premiums were calculated.
"We advised drivers to consider contacting their insurers to reduce their annual mileage estimates and receive a potential premium reduction or rebate. "
This year, young drivers are insured to drive 3,541 miles on average, down over 50% from 7,347 miles the year before, according to Compare the Market.
Slashing this average distance in half will have contributed to the reduced insurance premiums and fuel costs young drivers have seen this year.
But with lockdown restrictions at an end, drivers can expect this cost to increase again due to more cars being back on the road.
