A first-time car owner might have to fork out a hefty £11,500 for his or her first year on the road, according to the Institute of Advanced Motorists (IAM).
The Institute called upon insurers to rethink the issue of insurance for young drivers after calculating that a newly qualified 17-year-old male driver with a four-year old Kia Picanto could pay as much as £11,500 for his first year of driving.
Driving lessons will cost him about £1,128, while the driving test itself costs another £100 - if he passes the first time, which few of them do. The car itself would cost him about £3,000. The really shocking expense here is the insurance premiums: the most affordable fully comprehensive insurance premium the Institute could find for such a driver cost £7,091 per year.
Add to that the cost of MOT and road tax (£180) and you will get £11,500 for the first year of owning and driving a car. Taking into account that we are talking about a segment of the population here that usually has a dire shortage of cash it becomes easy to understand why car sales have taken a nosedive.
Neil Greig, the Director of Research and Policy at the IAM, said "When insurance premiums match university tuition fees, innovative thinking is needed. Young drivers can only learn safer driving by practising it, but huge insurance premiums risk pricing them off the road."
Author - Louise Hutchinson
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