Young drivers in the UK are grappling with record-high car insurance costs, with some premiums reaching nearly £3,000. Data from confused.com shows a significant rise in insurance rates for 17-20 year olds, increasing by over £1,000 since last year. The overall average increase in car insurance is 58% compared to last January.

Steve Dukes, CEO of confused.com, links the rise to increased claims post Covid, higher prices for second hand cars, and increased repair costs. The demand for used cars spiked during the pandemic due to a shortage of computer chips and manufacturing materials, leading to a 31% price increase in March 2022 as reported by the Office for National Statistics.

Average insurance premiums for all drivers have climbed by £366 to £995, with 17-year-olds now paying around £2,877 and 18-year-olds facing an average of £3,162. Strategies to mitigate costs include adding experienced drivers to the policy.

The Association of British Insurers (ABI) recognises the steep costs but suggests there are ways to reduce them. They stress the necessity of having insurance coverage and advise those struggling to consult their insurers. The ABI points out that insurance costs correlate with risk levels, and younger drivers typically have higher claim costs.