Car premiums makes up 20% of young driver salaries
New data has found that young drivers are spending more than 20% of their annual income on car insurance.
According to figures from the House of Commons Library, the average UK salary in 2022 was £33,280 while the average car insurance premiums were £924. That means on average car insurance premiums account for around 2.78% of the average adult driver’s salary.
However, the average salary for 16-17 year olds in 2022 was £11,902 while the latest car insurance premium from the third quarter of 2023 for that age group was £2,613, which accounts for 21.95% of their average earnings.
Leoni Moninska, Uswitch car insurance expert, said: “Whilst car insurance has increased in price for the majority of people in the UK, it’s clear that the impact on people’s finances will vary greatly across the country. Younger drivers are feeling the greatest pinch, with car insurance premiums now accounting for more than 20% of their potential income on average.
“The average percentage of salary spent on car insurance for the UK is now 2.78%. The differences in salary and premiums mean that drivers in London, West Midlands and Yorkshire are paying more relatively for their insurance than other Brits from around the country.”
