Are young people priced out of driving?

In most rural areas, a car is the only way for young people to escape the nest – unless they’re prepared to walk for miles, that is. Yet new research shows that over one in five under 25s (22%) cannot afford to learn to drive.

Insurance is a further barrier. With the average cost of car insurance costing around £1400*, and rising to £3878 for a 17 to 20 year old driver, it’s no wonder that this demographic is struggling.

Buying and running a car is the final nail in the coffin for young drivers. 22% of under 25s in the Opinium survey, commissioned by InsuretheGap, a new independent provider of vehicle GAP (Guaranteed Asset Protection) insurance, said that without the bank of mum and dad, or a loan, a quarter are unable to buy a car, and 24% said they would like to buy a car but would be unable to cover the running costs, i.e., the insurance, road tax and fuel.

2016 survey for the Money Advice Trust found that more than a third of young people have debts of almost £3,000 and experience significant concerns about money.

“When one in six jobs specifies that the applicant must have a driving licence, this generation are potentially being held back by their lack of wheels,” said Ben Wooltorton, Director at InsuretheGap.com.  “The RAC Foundation analysed 847,000 job vacancies last year and found that jobs requiring a valid licence ranged from a zoo worker, a chef, sales consultant, security guard,  hairdresser and even gymnastics coach, so we’re not just talking about driving jobs here”.

*source MoneySaving Expert