Parents pay out more than £2 billion a year to help their children with motoring costs, a new survey has revealed.
Over half (52 per cent) of UK parents with children aged 17-24 admit to helping their kids with car running costs over the last 12 months, spending an average £762 per child.
According to the study, which was conducted by Compare the Market, three quarters of parents and more than half of the young drivers said that the child’s job would suffer without the financial support of their parents.
The majority (86 and 80 per cent respectively) also said that young people’s salaries were not enough to cover the cost of running a car, even when it is essential for many of them.
Parents are most likely to help with insurance costs – handing over an average of £288 a year.
Fuel was the second most common financial contribution costing £169 a year, followed by vehicle repairs (£178) and help paying their vehicle tax (£125).
On top of the ongoing costs, 40 per cent of young drivers said their parents helped them buy their first car, giving them an average £2,201.
Commercial director at Compare the Market, Simon McCulloch said: “The cost of running a car for a young person is rising, prompted largely by spiralling insurance costs.
“We have calculated that insurance premium tax (IPT) has added, on average, £161 to the annual premium for a young driver.
Insurance premium tax
“We urge the government to introduce a limit on IPT for drivers under the age of 25, or remove it all together.
“Not enough is being done to ensure that driving is kept affordable for young people.
“The unintended consequence of IPT is that it hits young drivers the hardest, making it more and more difficult for them to take jobs, move jobs, and contribute to the wider economy.
“Salaries and savings for those in their late teens and early 20s are simply not enough for many people to keep a car on the road and with insurance costs rising and the price of petrol creeping up, there is currently no light at the end of the tunnel for young drivers or their parents.”