New research from Confused.com has revealed that drivers are switching to smaller cars to keep insurance costs down.
It appears that new drivers, especially, are opting for smaller cars to keep costs low, with 70% of first-time buyers choosing a car with a 1.3-litre engine or smaller.
Despite a recent claim from the AA suggesting that insurance costs have gone down, a 17-year-old with a Fiesta 1.3 can still expect to pay over £5,000 for a year's comprehensive cover. It is no surprise therefore that 66% of the people surveyed claimed that car insurance was a "huge expense."
The Head of Car Insurance at Confused.com, Gareth Kloet, said, "Car insurance is a huge purchase for young drivers. However our research tells us that these drivers are adapting to pressures and opting for smaller, cheaper cars, in order to minimise their insurance premiums."
Newer drivers are also resorting to buying bangers with 35% of youngsters paying less than £500 for their car.
To help younger drivers, Confused.com has released a list of top-tips to keep costs manageable:
- Budget not just for the cost of the car but for cost of ownership too. Consider insurance, tax, MOT bills, repairs and fuel.
- Shop around for your insurance.
- Add an older named driver to your policy.
