If you’re a young driver, then you’ll know just how expensive it is to get and keep yourself on the road. So, it was only a matter of time that an online petition did the rounds, calling for a cap on car insurance for 18-25 year olds.
The petition was started by a Suffolk teenager who said he’d been quoted £2,500 to insure his car – a figure that was “completely unaffordable”. The petition attracted 185,175 signatures and was debated in Parliament, but the outcome probably wasn’t what young people were hoping for (but no doubt expected).
In their response, the Department for Transport (DfT) said they were “aware” of the high cost of car insurance but that ultimately, it was up to insurance providers to work out the cost of premiums.
The DfT said that measures for robust teaching and testing would hopefully give insurance providers confidence that young drivers were competent and safe, and this could eventually be reflected in lower premiums.
The government also alluded to the fact that insurance providers were best placed to decide the cost of insurance based on their understanding of risk.
While there was recognition that the cost of insurance is high, the government advised there were ways and means of lowering that – such as with telematics insurance which could reduce costs by as much as 20% where drivers show good driving behaviour.
In the meantime, new caps on whiplash compensation have been announced which aim to reduce the value of such claims – bringing down premiums for everyone in the long term.
Young drivers might well think high insurance premiums are unfair and some cost more than £3,000 – but insurance is all based on risk. It’s been proven that younger drivers, are often riskier drivers with more than a quarter (26%) of 17-24 year olds having crashed within two years of passing their test.
Research also showed that whilst teenage drivers between 17 and 19 made up only 1.5% of full driving licence holders, they accounted for 12% of serious or fatal accidents.
So, for the time being at least, young drivers are just going to have to stay alert on the roads and prove themselves with incident free driving and collect their no claims discount along the way. Of course, there is one thing we can all try, to lower the cost of our premium – and that’s to comparethemarket.com