Younger motorists are being hung out to dry by car insurance companies that are desperately trying to counter premium losses from customers that switch insurers, according to a recently conducted research study by the Independent on Sunday.
The research findings indicated that discount car insurance for young drivers is becoming as rare as rain in the desert, with one firm quoting a 17 year old driver £9,000 for yearly cover – which is well above the average car insurance rate increases the remainder of the population have been enduring. The problem has become so severe that the Office of Fair Trading has declared it will be launching an inquiry into rocketing motor car insurance prices.
According to the AA, the average price of comprehensive cover increased by 40 percent over the past year. Motorists between the ages of 17 and 22 faced even higher rate hikes, having to shell out 64 per cent more than they did last year, with the average quote topping £2,400, though many young motorists end up having to pay much higher rates.
The road safety charity Institute of Advanced Motorists recently discovered that the least expensive quote for the average motorist 17 years of age was an eye-watering £7,091 a year, with the highest quotes being approximately £9,700.
The director of policy and research for the IAM, Neil Greig, said that insurers seem to not even wish to attract young motorists any more. In days past, the goal was to bring drivers on at a young age in order to encourage their loyalty well into the future, added Mr Greig, yet now people will jump ship to a more competitive price quote at the drop of a hat.