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Car Insurance Premiums Could Fall By Up To 20 For Young Drivers

• Young drivers could pay between around 15-20% less for their car insurance if the Government introduce in full ABI proposals to improve young driver safety
• Average annual premium of a 17-18 year old driver: £1,853*
• Potential reduction in a 17-18 year olds premium: up to £370** a year
• Nearly 3 million young people who hold a driving licence could benefit, which is nearly 8% of Briton’s licence holders ***

The insurance industry will announce today (5 March) at the ABI’s Motor Conference 2013, that car insurance premiums for young newly qualified drivers could fall by around 15-20% if the Government implemented in full the ABI’s Safe Young Driver proposals. The single biggest cause of accidental death of young people aged 15-24 olds dying is in a car, with 40% of 17 year old males having an accident in their first six months of driving.

We are calling for:
• One year minimum learning period for young drivers.
• Limiting the number of young passengers and restrictions on night time driving for young drivers for an initial period after passing their driving test.
• Zero blood alcohol driving limit for an initial period after a young person passes their driving test.
Currently the Government is considering measures, including the ABI’s proposals to improve young driver safety.
Otto Thoresen, the ABI’s Director General, said:
“Every car crash is a personal tragedy for those involved, family and friends. Sadly young newly qualified drivers are at a much higher risk of having a serious crash on our roads which is reflected in the cost of their car insurance. Insurers want to see young drivers become safe drivers which in turn will result in more affordable premiums. If the Government implemented the ABI’s proposals lives would be saved and the cost of car insurance for young drivers could reduce by 15-20%.”

Andrew Parker, Partner at DAC Beachcroft, who are partnering the ABI at the Motor Conference, said:

"Much of the recent debate on the cost of motor insurance has been about excessive legal costs, but the toll of death and serious injury involving young drivers urgently needs to be tackled. These sensible proposals show that the industry wants to help - but insurers cannot solve this on their own."


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Last updated 01/07/2016