Car Insurance For New Drivers Doubles In Price

As car insurance costs soar, newly qualified drivers will pay around £2,000 or more to insure a small hatchback.

Car insurance prices are still on the increase.

According to comparison site Confused.com, newly qualified drivers can now expect to pay around £2,000 or more to insure a small hatchback.

This time last year the cheapest premium for a new driver insuring a Ford Ka for a year came in under £900. Now the best quote for a newly qualified driver wanting to insure a Ford Ka is over £1,900, more than double.

Most popular to insure for a new driver at the moment is the Fiat 500 Pop, knocking off the previous favourite the Vauxhall Corsa, but that will cost more than £1786.

Confused.com’s head of car insurance, Gareth Kloet said: “Getting reasonably-priced car insurance can be a nightmare for younger drivers but 50% of under 25s could save up to £571 on car insurance* premiums by using Confused.com to find the best deal. With rising premiums it’s more important to compare prices now than ever before.”

MoneyHighStreet.com comments: “Not only are car insurance premiums increasing, so too are the excess limits – the amount you have to pay in the event of a claim before your insurer start to pay.

“Using a comparison site can help you save money but you do need to take care to read the small print – ensure you get the cover you need and be clear on all your costs, not just the premium amount.”

Top ten most popular cars with newly qualified drivers, June 2011:

The above information, provided by Confused.com, is based on drivers with a provisional licence, or who have passed their test within the past year, looking for quotes between January 2011 and end of May 2011, with a minimum of 500 quotes per model.

*Savings based on online independent research, Consumer Intelligence (May ’11). 50% of consumers, aged 17 – 25, could make this saving.