Accountancy firm Mazars predicts young drivers will face motor insurance premium increases of at least 50% over the coming year. This would take young adults’ typical average premium from the current £2,431 to a staggering £3,600 per annum.
In other words, young people will need to have disposable income of £300 a month just to insure their vehicle – then there’s tax, fuel, upkeep, repairs, parking, fines, finance etc. etc. So the total cost of operating a personal motor vehicle would be more like £400 or £500 for most.
How many young people have this kind of cash going spare? The average net income for wage earners under 20 is around £670 a month. For 20-24 years olds, it’s more like £900. In either case, driving a car legally is going to take a big chunk out of that income.
So what will happen? More young people will live with their parents, choosing mobility over residential independence. More parents will be fronting for their offspring. More young people will decide to do without insurance. Fewer young people will drive at all. Hot hatch resale values will plummet.
We can safely assume that most young people still driving a car in 12 months’ time will up to no good of one kind or another. If the police have a mind to go after all the young frontees and insurance avoiders, traffic congestion could be eased considerably, leaving the roads to the rich kids, whizz kids and dealers.