Transport Committee 'extremely concerned' about young driver insurance costs
Almost all young drivers feel they are being priced off the road by the cost of motor insurance, according to a survey carried out in conjunction with the House of Commons Transport Committee.
The survey, by Young Marmalade the combined car purchase and insurance company, also revealed that 21% of young motorists have considered driving without insurance, because of the high cost of premiums.
Louise Ellman, Transport Committee chairman, said she was ‘extremely concerned’ and would be putting the results to ministers when they appear before the committee (11 October) to give evidence in an inquiry into the cost of motor insurance.
The poll of 1,127 young drivers showed that 96% felt they were being priced off the road, while 30% had considered altering the information they provided to insurance firms in order to get a lower quote.
Louise Ellman said: "I am extremely concerned about these results, which show that young drivers think they are being priced off the road because of the high cost of motor insurance.
"It is shocking that so many young drivers are considering breaking the law - by driving without insurance or changing the details they provide to insurers - in order to get a cheaper premium.
“It's revealing that most young drivers are also unaware that many insurers receive referral fees in order to deal with claims they make.
"This highlights why the committee called for referral fees to be made more transparent in its report on the cost of motor insurance earlier this year."
Mike Penning, road safety minister, said: "We know that the cost of insurance is a problem for young drivers. That is why we are making changes to the driving test to make sure it better prepares drivers for real life on the road, and introducing a new 'pass plus' qualification to help improve the skills and knowledge of young drivers so that insurers then have the confidence to offer them lower premiums.
"In addition, we have introduced a new offence of keeping an uninsured vehicle, helping us to take targeted action against uninsured driving, which contributes to higher premiums."
Simon Best, IAM chief executive, said: “The challenge for the insurance industry is how to balance the need for driving experience with the very real risk that young drivers pose to themselves and other road users. Insurance premiums are matching university tuition fees.
“Many young people need a car to get to work. There are serious implications to the economy if they can't afford to drive, and to road safety if they simply choose to forgo insurance.”
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Perhaps there should be a requirement to, say, participate in something like 60hrs of pre-training before the DSA will even contenplate a driving test. [Sorry do they not do that all ready]
Whilst there are good and bad instructors, surely the test is the same and if someone can pass that test they then have an entitlement to drive? Unless they have had someone take it for them of course.
Getting cynical in my old age.
Isn't it about time that insurers, all of them, measure risk by actual behaviour using black boxes. And that goes for non-young drivers as well. This will have these effects:
- calming the aggressive acceleration and braking behaviours (of young, middling and old).
- because of the above, it will also reduce accidents thereby reducing the median value of policy premimums for all.
- it may also shift times of day of travel thereby reducing congestion, assuming higher price rates apply at busy/risky times
Becuase black boxes are perceived as an infringement of our liberty, no doubt we will have to wait for Brussels to bring this in as a complusory step.
Of the big insurers only the Co-op seems to be trail blazing on black boxes.
Don't blame the insurance companies totally... Blame the parents of teenagers for only buying cheap poor quality downmarket driving lessons. Then having not been trained very well, certainly not as ''safe drivers for life'' they pass the simple driving test... Then, hey presto, off they go, crash, bang, wallup. Carnage, death and destruction on the roads.
Whereas the sensible parents buy good quality lessons from highly qualified and professional instructors, the teens are taught properly and go on to drive sensibly throughout their lives.
Professional Driving Instructor