Industry News from Yes Insurance

Parents looking to finance their child's first car may find that it is more expensive to purchase motor insurance than to buy the vehicle itself.

New research from comparison site Gocompare.com has found that mums and dads in the UK are willing to part with £1,014 in order to get their son or daughter on the road.

This may be because the standard of the vehicle is important to them, as three-quarters stated that they would expect the car to be no more than five years old.

But it could be that other costs need to be factored into the equation, according to Hayley Parsons, managing director of Gocompare.com.

"It's not just the price of the car they need to consider. For a young driver, it can cost more to insure a car than the value of the vehicle itself," she said.

Currently, it is legal for a child to take to the road from the age of 17 as long as they have a provisional licence at the very least.

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