Young drivers facing a 51% increase in car insurance premiums
15 October 2010
That is according to the AA's ShopAround Index, which is based on the three cheapest quotes available to the average consumer.
This is the largest jump in price since the Index started in 1994 but there are ways to save money on your car insurance.
Men aged under 25 can now expect to pay £2,500 a year for their car insurance and women of the same age group can pay £1,400.
However, if they shop around for the best deals on a price comparison site, they may be able to find a lower premium.
Some such as Moneyexpert.com will offer £25 in cashback when a consumer switches car insurance and will refund 110 per cent of the difference if a better deal is found elsewhere.
According to the Guardian, drivers can save money on their car insurance by paying for their cover in a lump sum.
Spreading the cost by paying for the cover in monthly installments may appear cheaper and more manageable but more interest will be added to the price.
Another way in which Brits can save money on motor cover is by not accepting a renewal quote as most of the providers want to entice new customers with discounts and special offers rather than to reward loyalty.
It may also be worth installing a security device, such as a tracking system, into your vehicle to keep costs down as these will help the police find your car if it is ever stolen.
Simon Douglas, director of AA insurance, stated that young drivers are being faced with such steep costs because a third of those killed or injured in a crash are younger than 25.
He said: "These are shocking statistics that underline why insurance premiums for young drivers are soaring. Multi-million pound injury claims are no longer unusual."