Teens May Pay Up To £11,500 For Initial Year Of Driving

The Institute of Advanced Motorists (IAM) recently reported that new drivers may be required to spend £11,500 for the first year on the road. This figure is surprisingly high, especially considering that it does not include car finance costs. The IAM is requesting that car insurance companies take a second look at rates offered to young drivers.

According to calculations performed by the IAM, a new driver who is a 17-year-old male could pay up to £11,500 for one year of driving a 2007 Kia Picanto. Driving lessons cost an average of £1,128 and the driving test is £100. It will cost about £3,000 to purchase the car, which will most likely involve additional car finance charges. The lowest priced comprehensive insurance policy costs £7,091 annually, based on what IAM could find.

Road tax and MOT tack on an additional £180, arriving at the £11,500 price tag for the first year of driving. Fuel and vehicle maintenance will increase this figure, which is already much too high for many cash-strapped teenagers to afford. After reviewing these numbers, it is no surprise that vehicle sales have plummeted within the UK.

IAM Director of Research and Policy Neil Greig summed up the situation with an excellent comparison. He said that when premiums for insurance are the same as tuition fees for universities, insurance companies must begin thinking creatively. He understands that only practice will make young drivers safer, but said high insurance premiums could price some teenagers off the road.

Interest rates for car loans make things even more difficult for teenagers. Those in this age group usually have little or no credit, making bad credit car finance their only option. The higher interest rates of this type of lending can lead many new teenage drivers to continue riding bicycles rather than purchasing a car.