Cheap car insurance for young drivers may finally be on its way, according to one car insurance comparison site’s recent market watch report indicating a possible end to the massive price inflation that has been gripping the industry.
With many young motorists experiencing spiralling car insurance rates over the past 18 months, countless younger drivers would doubtlessly welcome newly released data suggesting that the more than 40 per cent annual price increases they’ve been experiencing will soon be coming to an end. The most recent monthly price index published by Tiger.co.uk, a report that monitors hundreds of insurance premium prices over a large range of motorist profiles, found that September’s figures indicated a price drop both quarter-on-quarter and month-on-month as insurers compete for new business with increased fervour.
Premium prices for 20 year old males and females dropped by nearly 4 per cent and 1 per cent respectively last month, the market report found. In the long term, 2011’s third quarter saw insurance costs for younger motorists decline by approximately 5.5 per cent in comparison to the second quarter of this year.
However, even with the good news, the comparison site struck a cautious tone. While market prices have undoubtedly flattened, a firm spokesman said, last year’s massive price inflation is still being felt quite strongly, to the point that some young drivers have been priced out of the market.
In related news, the Institute for Advanced Motorists recently revealed that the start to finish cost for a brand new motorist learning to drive, passing their test, and then purchasing and insuring their first car, costs an average of more than £12,000. The majority of these costs come from securing insurance for the vehicle, IAM sources say.