Around 70% of 17 to 24-year-old drivers have received financial support from their parents to help them run their car in the last year, according to Comparethemarket.com.
As many as half of young drivers also admitted without parental contributions to their car finance, their job would suffer. Almost the same proportion said it would impact their social life.
Julie Daniels, motor insurance expert at Comparethemarket said: “Our figures show that for many drivers, the cost of running a car is becoming impossible.
“A concerning proportion of young people rely on the generosity of family members to stay on the road, placing a considerable financial burden on those supporting them. It also means that, if costs continue to rise, some of those who can’t rely on parental support may not be able to get to work.”
What are parents paying for?
According to the Tank of Mum and Dad report, young drivers are most commonly relying on parents to help them pay for insurance, petrol, repairs and motoring taxes during the cost-of-living crisis.
Insurance is the most expensive, with parents paying out an average of £277 towards policies. The average car insurance premium for a 17 to 24 year-old now stands at £1,156 according to Comparethemarket’s figures. This means some parents are paying more than a fifth (23%) of this annual expense.
Repairs and maintenance costs are the second most common financial contribution, costing parents £197 a year, followed by fuel (£176) and then vehicle taxes and MOTs (£131).
In addition, 46% of parents said that they helped their children purchase their first car – contributing an average of £2,514 to the cost of the car.
How to save money on your car
Julie had some tips to help young drivers save money on their car. “It is a good idea to shop around and compare policies to see if there is a better deal available,” she said.
“Switching to a telematics policy may be a good option for young drivers to consider, as well as adding an experienced named driver to their policy. However, young drivers should take care to avoid fronting.
“This is a type of insurance fraud, where a more experienced driver claims to be the main driver of a car, when in fact they’re not.
“Finally, a quick and easy way for any driver to find a great deal ahead of their renewal can be by signing up to automated car insurance renewal quotes.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.