Premium rates for younger motorists between the ages of 17 and 22 have gone up by an average of 80 per cent over the last two years, according to the AA’s motor car insurance division. The average cost of a comprehensive car insurance policy for the same age group now stands at £4,006 according to Towers Watson, which is a massive increase over the overall average premium price of only £858.
AA Insurance director, Simon Douglas, remarked that the majority of younger drivers just can’t understand why their first insurance policy costs 10 times what they might pay for an inexpensive used car. However, Mr Douglas said that car insurance companies are concerned with the costs associated with the irresponsible use of even the oldest banger, as road traffic accident injury claims of £5 million or more have become more and more common.
Young Marmalade, the insurer that recently slashed its rates, uses a new telematics technology to keep track of motoring behaviour through the same type of connection a sat nav uses. Dubbed ‘Intelligent Marmalade’ by the insurance company, the little black box monitors all sorts of data, such as what time of day the car is operated, its speed, and how hard the driver brakes and accelerates, before using the information to calculate premium prices; costs are higher for reckless behaviour, whilst good drivers are rewarded with less expensive cover.
Young Marmalade spokesperson, Nigel Lacey, said that young drivers using the telematics device pay an average of £1,642 to £2,601 on annual cover.