With car insurance rates increasing by record rates, those Brits in search of discount car insurance for young drivers have been having a rough go of it – especially because some insurers quote premiums that cost more than the vehicle did to purchase.
Next week, thanks to new motoring laws that go into effect, every car in the UK will be required to have a valid motor car insurance policy, even if unused. Many insurance experts believe that this could actually result in an increase in younger motorists driving uninsured because they can’t afford even cheaper car insurance.
Insurers need to base their rates on the level of risk they assume when they insure a given vehicle. Since the majority of young drivers are inexperienced, the likelihood of being the cause of an accident is higher, despite how responsible they may be behind the wheel.
However, this means that motorists aged 25 and younger oftentimes encounter higher insurance rates. When coupled with the constantly rising cost of petrol, many simply cannot afford to own and operate their own motor vehicle.
Being caught driving an uninsured vehicle can result in a fine of as much as £5,000. Additionally violators can end up with anywhere from six to eight points on their licence, but the true cost is passed on to honest drivers through higher premiums – uninsured drivers who cause accidents have their accident claims paid by the Motor Insurers’ Bureau, which receives its funding from insurers directly.
In an effort to not only reduce how many uninsured drivers are on the road, but also to reduce the average car insurance premium, the government has gone forward with plans to require every car in the UK have valid insurance cover. The only exception to this rule is a car that has been declared as official off road with a Statutory Off Road Notice.