THE ANNUAL cost for young drivers using a car has dropped by £536 this year, making it the cheapest it has been in five years.
Compare the Market has revealed that the typical expense per annum for drivers aged 17-24 is £1,373, the lowest figure since research began in 2015.
This decline is due to the average mileage of young drivers decreasing over the last year, falling from 7,347 miles to just 3,541 miles.
According to the price comparison site, instead of auto-renewal, young motorists could save £178 by shopping around for insurance.
Car insurance is responsible for 61% of overall car running costs, but the price has tumbled in the past year due to the pandemic reducing the number of cars on the road.
The average for car insurance premium for young drivers is now standing at £1,062 annually.
Director at comparethemarket.com Ursula Gibbs commented: “Following lockdowns and working from home, many young motorists have drastically reduced how many miles they will drive this year.
These young people will be comforted that the cost of driving has fallen as a result.”
The latest Household Financial Confidence Tracker from comparethemarket.com shows more than a fifth of 18–24-year-olds struggled to afford bill payments and financial commitments in recent times.
“The steep drop in costs will hopefully ease some of the financial strain many young people are under – and prevent driving from becoming prohibitively expensive.”