July 2, 2008
Young drivers face high car insurance premiums
Young motorists are likely to pay twice as much for insurance than other motorists. However, the government’s introduction of the Equalities Bill which is aimed at preventing age discrimination ,could begin to have an impact on car insurers. It is estimated that young drivers across the UK pay a total of over £900 million more than other drivers.
Young drivers are encouraged to conduct extensive research prior to committing themselves to an insurance provider. Failing to do so could result in the payment of expensive premiums. Additionally, young drivers may face further financial expense if they live within high risk areas. This steep increase in car insurance costs has meant that in many cases young drivers cannot afford fully comprehensive cover. In some instances the cost of the cover far exceeded the cost of the vehicle.
Statistics show that although young motorists represent around 7% of the car insurance sector ,16% of vehicle related offences are caused by these drivers. As far as car insurance firms are concerned this provides ample reason for charging high premiums.