The UK Insurance Blog

An interesting article about young drivers paying more for their car insurance reveals some very interesting facts and figures.

Age does make a big difference – its official! A recent uSwitch.com survey revealed that if you are a young driver you have to pay double the insurance other motorists have to. These are the lucky ones, some don’t manage to get cover at all.

Things may have to change soon though thanks to a new Equalities Bill where restrictions and bias exists that is based on age. The car insurance industry will have to sit up and pay attention. As it stands, it is unfair that young drivers, who make up 7% of the driving public, have to currently pay 22% of all premiums across the chart. Younger drivers are considered a greater risk and pay more for this reason and because they can’t resist sportier cars like a GTI. Insurance for a young driver driving around in a GTI is usually about £4,000. If you are young, stay away from the sporty numbers!

If you shop around, it is possible to get fully comprehensive cover for a more sedate vehicle for £459 although young people would expect to pay just under a thousand pounds. It is worth shopping around!

Over the last ten years, car insurance has risen by 122%. Insurance for an eighteen year old to drive a Volkswagen Golf E (price tag £4,295) for third party fire and theft, is currently about £1,336 but should you go fully comprehensive, the price of insurance will hit £6,652.

Although young people only account for 7% of the car insurance market, they account for 16% of overall accidents while under 21 year old account for 34 % of dangerous driving incidents. When young male drivers are more likely to have a motoring accident than anyone else it is not so much of a surprise that their insurance premiums are substantially higher than others.

Good news though, big premiums do not last forever with good behaviour. In the event of a year’s driving without making a claim premiums can drop quickly sometimes by as much as 90%.

Speaking from uSwitch.com, an insurance expert pointed out that the new Equalities Bill could mean the end to extortionate insurance premiums for young drivers. This is a fact despite evidence that younger drivers are a greater risk on the roads. If this occurs, will low risk drivers have to pay a higher premium as a consequence subsidising the less experienced driver. Another worry is that with a lower premium, the boy racer will have nothing in his way to stop him buying a sportier more powerful car. This would not be an ideal situation.

The message to all young drivers is that if you shop around, you should always manage to get the best deal for your car insurance. When seeking out low premiums look for one that specialise in young motorists. The company Swinton has recently established a special 6 month policy for new drivers who have just passed their test. After not making a claim for six months, you get a thirty percent discount on a year’s insurance. The rewards keep coming if you make it to 18 months without making a claim, your discount increases to 45%.

Insurance premiums can be exorbitant or if you do your homework, they can be very reasonable. Get online today and save those pounds!

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