Car Insurance News

Parents buying cars for their children should carefully consider the price of insuring the vehicle, experts have warned.

Recent research by Gocompare.com has found that on average, parents contribute over £1,000 towards the cost of their offspring's first car.

However, experts emphasise that students and other young people would actually be better off being given cars which are cheap to insure.

Hayley Parsons, managing director of Gocompare.com, recently explained: "For a young driver, it can cost more to insure a car than the value of the vehicle itself.

"The latest premium index studies show that car insurance premiums have reached their highest ever level - both for comprehensive cover and for third party, fire and theft insurance which is typically bought by young and inexperienced drivers."

She continued: "It looks likely that this upward trend will continue. The difference in premiums between insurers for young drivers is often greater the younger the driver - making it all the more important to shop around for the best deal."

Students and other drivers under 25 generally pay higher insurance premiums.

They are also not eligible for the no-claims discounts older drivers benefit from, due to their lack of experience.

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