Teenagers buy more cars, but their car insurance costs are increasing

More teenagers are buying cars as soon as they have passed their driving test, however their car insurance costs are rising steeply.

Teenagers are buying their first car at a younger age than ever, a study by AA Car insurance has found.

Half of male drivers own their first car before they are 20, whereas one in three women own a car by that age.

With the costs of running a car increasing, it is important for these young people to compare car insurance quotes to get the best deal.

Having the right cover is important, particularly as one in five young drivers will experience a serious accident in their first year of driving.

Young men are particularly at risk as they are unfortunately twice as likely to be killed or seriously injured in an accident than their women counterparts.

Most teenagers buy a car that is over 7 years old and will cost less than £2000.  A third of young drivers buy a car for less than £500.

With the first year accident rates being so high, many young motorists are paying more for their car insurance than they paid for the car.

As Simon Douglas, director of AA Insurance, says: “Although most young drivers expect their first year’s car insurance premium to be expensive, it still comes as a shock when the cost might be twice what their first car is worth,”

“But it’s got little to do with the value of the car – and much more to do with the fact that young men especially are likely to injure themselves, their passengers or other people when they lose control, with consequent personal injury claims and legal costs.”

“But with claim- and conviction-free driving, a no-claim bonus will quickly be built up and premiums will fall dramatically over subsequent years.”