Young drivers are hit with annual running costs of almost £2,500 – and they are still rising
Motorists in the 17-24 age bracket are being slapped with even larger fees to keep their car on the road for their first year of driving
YOUNG drivers are forking out close to £2,500 on average in their first year on the road, new research has revealed.
Running costs for new drivers have risen 2.7 per cent in the last 12 months, and there's now a call for Insurance Premium Tax (IPT) to be scrapped for 17-24 year olds.
In a recent report by Compare the Market, data revealed a rise in the cost of car insurance for young drivers over a two-year period.
Premiums for the youngest age bracket have been boosted by £67, giving an average yearly cost of £1,324 - with insurance making up more than half of young drivers' running costs.
The rise in price has largely been blamed on IPT, which has doubled in recent years.
Now standing at 12 per cent, the charge is priced into the overall premium charged to drivers, meaning youngsters with higher car insurance bills face disproportionate costs added to their policy.
An increase in the cost of fuel has also added around £80 per year to the average spend for drivers.
The UK price comparison website is now calling for Government to remove the IPT for drivers aged 17-24.
Dan Hutson, Head of Motor Insurance at Compare the Market, said: "Driving costs for young people are becoming worryingly high. Each quarter, our Young Drivers Report shows an increase in the cost of getting on the road for 17-24 year olds.
"The price of insurance for young drivers remains awfully high and now the price of fuel is also expected to rocket.
"Fuel costs have always been volatile, but the significant rise in price over the past six months will have a large impact on the affordability of driving, especially for young people.
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“The unaffordability of keeping a car has significant ramifications on young people’s ability to travel to work and hold down jobs, especially when a large proportion of their salary may be spent on travel alone.
"Not all parts of the country benefit from public transport and for those that rely on a car, these figures will be concerning.
"As a result, Compare the Market is calling on the Government to abolish Insurance Premium Tax for young people."