ABI: Young drivers spend 10% of salaries on motor insurance

The Association of British Insurers (ABI) has followed up its analysis of motor insurance with the finding that 10% of the average salary of drivers aged 18 to 21 now goes on paying for their policies.

Young drivers in this age bracket pay an average of £973 for comprehensive cover, according to the ABI. This is more than five times the average proportion among all other drivers.

The ABI found recently that the average motor insurance policy cost an extra £40 in 2017, a rise of 9% and a record high.

“More than any other drivers, young motorists need relief from rising motor insurance premiums,” said James Dalton, director of general insurance policy at the ABI.

Dalton added: “While telematics technology is helping many young drivers manage their insurance bills, cost pressures keep mounting.”

“The government has a key role in helping keep motor insurance costs under control, and this latest analysis highlights why they need to implement their proposals to reform personal injury compensation and lower value whiplash-style claims as soon as possible.”

Mark Dugdale