Car insurance companies to rethink approach to young motorists

According to one motor car insurance provider, the insurance industry as a whole needs to rethink its approach to young motorists and learn how to encourage more of them to take their test.

Only 35 per cent of Brits between the ages of 17 and 21 have a full licence, according to research conducted by the Department for Transport. ┬áThe reason most often cited as to why more younger Brits haven’t taken their test is the lack of discount car insurance for young drivers.

Cobra, one of many car insurance companies that provides telematics insurance to younger drivers, recently said that the country’s car industry could soon see a decline in sales unless insurance providers change the way they approach premium prices for younger drivers. The insurer suggested transitioning to a model where premiums were calculated not by what kind of car young motorists own but how they drive, and manufacturers can get in on the act by fitting newly built cars with safety equipment such as alarms, parking sensors, and speed limiters in order to aid motorists in bringing down their premium prices.

Cobra UK managing director, Andrew Smith, said that car manufacturers need to get together with insurers in order to see how they can expedite the transition to an insurance platform based on driver behaviour. ┬áSeveral insurers already do offer policies that feature lower premium prices for younger drivers, such as the Co-operative’s scheme that determines the cost of a younger motorist’s insurance by assessing the location, distance, and time of their journeys.

Such a system would permit responsible young drivers to gain access to higher performance vehicles, said Cobra, which would also act as a needed sales boost for the nation’s car industry.

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