You are here: Home - Insurance - News -

Car running costs for young drivers up £98

Written by:
The annual cost of running a car for a young driver has risen by £98 in the last six months, mainly due to higher fuel costs as global oil prices have rebounded.

It now costs an average 17-24 year old £2,299 a year to run their vehicle, according to comparethemarket’s bi-annual Young Drivers report.

Car insurance remains the most significant cost, accounting for 54% of the total amount. Premiums for young motorists have continued to rise, growing by almost 1% or £10 on average, per driver, since the last report in March and by £143 compared to July 2015.

However, months of fuel price rises have also driven up costs. The average price of petrol and diesel increased for four consecutive months to June, according to RAC Fuel Watch data.

Simon McCulloch, director of insurance at, said: “Younger drivers should look at insurance prices for several vehicles before deciding which car to buy – different models can have vastly different premiums, despite seeming to be broadly similar.”

According to the report, the Vauxhall Corsa topped the list as the most popular car for young drivers, followed by the Ford Fiesta and then the Renault Clio. However, only one car, the Fiat 500, made the top ten for both the most popular car and the cheapest car to insure. The Volkswagen Up! topped the list of cheapest cars to insure for the second time, costing an average of £849.

“When buying your first car, it is easy to forget to think about the running costs of your vehicle. By spending a little more money up front, drivers could save hundreds every year on their car insurance,” said McCulloch.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
60 second read…selling your annuity

The secondary annuity market is expected to be introduced next year but should you rush to sell your current income?