According to recent research young drivers are continuing to suffer outrageous insurance premiums. Newly qualified drivers are finding it more and more difficult to work up those vital no claims bonuses that help reduce renewal premiums over the following years. Recent statistics show that young drivers pay approximately six times as much for car insurance than pensioners. The average comprehensive cover of young drivers in the UK is around £2,500, little under a fifth of the average yearly salary of young people aged 18-21! If this wasn’t bad enough young male drivers are often targeted due to their ‘high risk factor’ and made to pay on average £3635 per annum.
It may seem unfair that the younger generation, those with the lowest average income, are being forced to fork out for massive insurance premiums just for the freedom of their own transport. However the fact remains that younger drivers are far more likely to be involved in an accident than any other age category. Although it is important not to discriminate against individuals, studies have shown that young people are more likely to drink under the influence of alcohol or drugs, speed, drive whilst on a mobile phone and not wear seatbelts. These are all contributing factors to the causing of thousands of car accidents each year, whether that is minor or severe collisions, resulting in insurance claims. However you cannot deny the fact that the number of accidents caused by young drivers is steadily decreasing and has been for several years despite substantial rises in premiums.
Although younger drivers are often highlighted as being the only people that are suffering from insurance premium rises, it is not entirely true. In fact studies from 2011 showed that on average, the cheapest car insurance policy has risen by 15% and is continuing to shoot up. However, the highest average increase in premiums does remain with young drivers. To add to the problem, many car insurance companies are now actually refusing to cover any people under the age of 21. If this continues it may become more and more problematic for young drivers to find insurance from a good quality insurer at reasonable prices.
So the question remains, why are these insurance premiums still increasing and why has nothing been done to protect young drivers from expensive premiums? Many politicians are now linking the increase in premium charges to the sudden increase in dubious whiplash claims. This seems relatively simple, more expensive claims, means more money paid out by insurance companies resulting in higher insurance premiums, a vicious cycle. This has been highlighted by MP’s but what measures are being induced to actually prevent rising insurance premiums? Suggestions are being made for a more thorough examination of whiplash claimants to determine whether they are truly affected by their injuries with a higher standard of justification of their claim. Also, there are plans to curb the companies that profit from accidents
However the future may look brighter, experts are predicting that over the following years motor premium inflation will ease. Whether or not this materialises is anyone’s guess.