Young drivers unaware of car insurance and tax rules

Summarised from 2 outlets · Updated 15 Nov, 01:31 · Archive

Research shows large gaps in young drivers' understanding of car insurance and vehicle tax rules.

Two separate studies have exposed significant gaps in young and older UK drivers' understanding of motoring rules. Research by Compare the Market found that 83% of young motorists aged 17 to 22 have driven another person's car, yet 40% incorrectly assume being the designated driver means they are automatically insured. A further 38% wrongly believe comprehensive car insurance covers them to drive someone else's vehicle, whilst 31% think the car owner's insurance automatically covers them.

The findings highlight dangerous misconceptions about liability. Sixteen per cent of young drivers admitted they had not verified their insurance before borrowing a car, and 41% do not check their coverage each time they drive someone else's vehicle. The research also revealed that 40% of young drivers were unaware they risked receiving penalty points on their licence for driving without valid cover.

Separately, a Censuswide survey commissioned by Dick Lovett found that 85% of UK drivers could not identify the £40,000 list price threshold at which the luxury car tax applies. Although 67% of drivers claim to understand vehicle tax well, most answered questions about it incorrectly. More than half were unaware that fully electric cars became subject to vehicle tax in April 2025, with just 40% aware of this rule change implemented over 18 months ago.

How it is being reported

• 'Majority of UK drivers unaware' of car tax rule that changed last yearNew research shows a striking gap between how well motorists think they know the vehicle tax system and how little they actually doDevonLive · 15 Nov, 01:18
• New advice to UK drivers born from 2002 to 2008 as 'nearly half don't realise'An expert has explained new researchPlymouthLive · 13 Nov, 13:53

In this story: Compare the Market · Dick Lovett · Censuswide · UK

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