In the longer term, safer driving by younger motorists could help to reduce the massive premiums that 17 and 18 year olds currently face when buying car insurance.
Ipswich, Suffolk (PRWEB UK) 12 October 2012
Last week the Association of British Insurers (ABI) called for an overhaul in the way that young people learn to drive in an attempt to reduce the high number of accidents and casualties amongst the UK’s under 25 year old drivers. Recommendations included the adoption of a minimum one year period of tuition, restrictions on driving at night for newer drivers, a lower alcohol limit for young drivers and the lowering the age at which young people can start to learn.
The ABI report highlighted the high incidence of accidents and casualties amongst young drivers: one in three road deaths are people under 25; and an 18 year old driver is three times more likely than a 48 year old to be involved in a crash. It argues that steps taken to radically improve road safety amongst Britain’s younger drivers would not just lead to fewer road deaths and serious injuries but would also start to impact on the cost of young drivers car insurance.
That younger drivers pay more for their insurance is indisputable. A newly qualified 17 year old driver can expect to pay some 70% to 80% more for their insurance policy than a 35 year old with the same car, occupation and postcode who has just passed their test. This is a reflection of the increased risk that insurers face from the younger driver. Tiger.co.uk, a leading independent car insurance comparison site, has produced an analysis of young drivers to examine the insurance costs facing young motorists and to look in particular at the effect that making an insurance claim during the early driving years may have on costs.
Tiger.co.uk’s research shows that a typical male driver passing their test at 17 and keeping a clean licence and without making any insurance claims could pay around £9,500 in car insurance premiums over a five year period. A woman with the same driving profile would pay substantially less – about £4,700 in total.
However, when a 17 year old has an accident and a claim during their first year on the road, this has a knock-on effect on premiums over the five-year period. Total premiums paid rise by over £1,100 (12%) for a young male driver and by over £850 (18%) for a young female.
Commenting on this analysis, Tiger.co.uk’s Commercial Director, Andrew Goulborn, said: “We support the ABI’s report and recommendations that are aimed at improving driver safety amongst the UK’s younger motorists. Whilst reduced road deaths and casualties are of course the most important effect of this, we also wanted to highlight the financial effect that an insurance claim in the first year of driving could have. Essentially, in the example we’ve used here, a young driver can save about £1,000 in increased premiums by driving safely and avoiding accidents and claims. It’s worth considering also the additional cost that younger newly qualified drivers pay compared with older drivers who have just passed their tests. In the longer term, safer driving by younger motorists could help to reduce the massive premiums that 17 and 18 year olds currently face when buying car insurance”.
Tiger.co.uk is a trading name of Call Connection Ltd. Tiger.co.uk is a UK based, independent motor insurance comparison site, offering insurance quotes from over 150 motor insurance brands. Call Connection Ltd is authorised and regulated by the Financial Conduct Authority (FCA number 308374).