IAM calls on car insurance companies to overhaul pricing

One road safety charity has called upon car insurance companies to overhaul their price calculation systems for younger motorists in light of the average premium price for 17 year old motorists has topped £7,000.

The Institute of Advanced Motorists has begun to campaign for discount car insurance for young drivers after they conducted a search on a popular car insurance comparison site for a fictional motorist.  The IAM created a fictional character born on 3 March 1994 named ‘Tom Stevens’ who had held his full licence for just one month.

The fictional Mr Stevens, who was said to reside in Richmond upon Thames, had an equally fictional 2007 Kia Picanto that he was seeking motor car insurance for.  The Kia would have been parked on the road in front of his nonexistent address.

Mr Stevens said he had a part-time job, was in full-time education, had no previous convictions or claims, but even requesting insurance cover just to use his car socially was met with price quotes of more than £7,000.  However, when the IAM changed the details to reflect Mr Stevens having 12 months of motoring experience, his lowest quote was just over £2,500 for an annual insurance policy.

Neil Greig, director of policy and research for the IAM, remarked that younger motorists can only gain experience driving safely by practising it.  However, with insurance premiums being so exorbitant, many run the risk of being priced off the road completely.

While young drivers to indeed pose a risk to both themselves and other users of the road, the IAM challenged road safety experts, the insurance industry, and the government to balance that risk against the need for younger drivers to gain motoring experience.  With insurance premium matching tuition fees for university, Mr Greig said that the insurance industry needs to incorporate more innovative approaches to high insurance costs for young motorists.

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