With the cost of learning to drive greater than the average income of young people, the IAM is urging insurance companies to respond to fluctuations in earnings and reward safer drivers with more affordable insurance premiums.
The IAM uses evidence from a popular price comparison website where the cheapest insurance quote available to a 17-year-old male driver in full-time employment is £7,868.38. The cheapest quote with a telematics box is £4, 464.69.
The IAM says that in 2009 the average full-time salary for 16-17 year olds was £9,300, but that this has since fallen by 9%, while the cost of learning to drive has not altered.
The IAM puts the average total cost of learning to drive and the first year’s motoring at £12,345.23. This includes £3,000 to purchase a car, licence and theory and practical driving tests, driving lessons, fuel, maintenance and car tax, and insurance.
Simon Best, IAM chief executive, said: “The expense of learning to drive may affect young people’s chances of getting a job, especially in rural areas where it is essential to get to work, creating a vicious cycle.
“The challenge faced by the Government, insurance companies and road safety experts is striking a balance between much-needed experience and manageable costs.
“The IAM is calling for insurance companies to be prepared to respond to fluctuations in earnings, and recognise the value of post-test driver training by rewarding safer drivers with more affordable insurance premiums. It is important for young drivers to do their research and shop around when buying insurance.”
For more information contact the IAM on 020 8996 9777.