Car insurance costs for young drivers drop to five-year low

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Car insurance premiums for young drivers have dropped £80 in the last six months, according to the latest analysis of costs.

Motorists aged 17 to 24 now pay an average annual premium of £1,182, the cheapest policies have been since 2015.

However, they still pay far more than drivers in other age groups and research has found that the coronavirus pandemic has had a significant impact on their ability to afford to drive.

The latest figures from Compare the Market show that there has been a 6.5 per cent drop in average premiums since the start of the year. While premiums have historically fluctuated throughout the year, they are also still £38 lower than over the same period last year, when they were £1,220.

Insurance costs have fallen across the board, partly as claims fell significantly during the lockdown when drivers were forced to stay at home. Separate data from Confused estimates that average premiums have fallen by £39 since the start of lockdown in March.