Cost of operating a vehicle has gone down for young drivers

The UK’s CompareTheMarket has released data showing a decrease of £296 year-on-year for a young driver to operate their vehicle during the first year of ownership.

The report reviews and compiles the cost of insurance, fuel, tax and breakdown coverage to create a single yearly expense total. In 2020, that cost was £2,074 for 17 to 24 year olds, the lowest it has been since 2015.

The cost of operating a vehicle has gone down for young drivers

The majority of the saving came from lower insurance fees (representing 53% of the overall total) and reduced fuel costs due to lower price at the pump and reduced average miles driven. The key driver for these changes were obviously the pandemic as driver/owners reduced the number of miles driven and saw corresponding reductions in risk and fees.

Of note, the cost savings were not automatic with drivers having to shop around, switching to a telematics based insurance policy (for mileage verification) was the key option to reduce insurance fees.

View the report at CompareTheMarket https://www.comparethemarket.com/car-insurance/young-drivers/