Government to discuss insurance cap for young drivers

2 minute read  |  April 24, 2017

Parliament is to discuss a proposed insurance cap for young drivers following a popular petition.

The insurance cap, proposed at £1,200, would affect drivers aged 18-25 who currently pay on average £2,013 a year for their car insurance. The Association of British Insurers (ABI) has estimated the average comprehensive policy to be £462 across all motorists.

A petition signed by over 180,000 signatories has forced the issue to be discussed in parliament, although with the average age of an MP being 50 and the fact that 18-24 year olds have the lowest turnout at elections, it’s likely that it’ll be thrown out faster than a vegan in KFC.

It’s not all bad though; the British Insurance Brokers’ Association (BIBA) claimed that the savings would be offset against other motorists meaning higher premiums for everyone else. BIBA has instead suggested that young drivers are spared from the Insurance Premium Tax which will rise from 10 to 12 per cent in June.

Higher risk

According to road safety charity, Brake, young drivers are at a higher risk of crashing due to a mixture of youth and inexperience. Data on British drivers shows that:

• Drivers aged 16-19 are a third more likely to die in a crash than drivers aged 40-49
• One in four 18-24 year olds (23%) crash within two years of passing their test
• Young male drivers are involved in more crashes than young female drivers

Insurance premiums are based on a number of criteria and considering that drivers in their early 20s are more likely to use a mobile phone while driving, not wear their seatbelt and be involved in a drink and drug driving accident, insurance companies are always going to class them as a higher risk and set their premiums high as a result.

Do you think the cost of car insurance for young drivers is too high? Or is it comparative to risk? Should an insurance cap be put in place for younger drivers? Let us know your thoughts.

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