There must be a reduction in car insurance rates for younger motorists in order to reduce the youth unemployment crisis facing the UK, Transport Secretary Justine Greening recently said.
Ms Greening pointed out that finding work for the more than one million unemployed Brits between the ages of 16 and 24 is nearly impossible with insurance premium prices at eye watering levels. Being unable to afford to keep a car is a serious blow to finding employment, the transport secretary added, leading her to call for a wider adoption of the satnav-based telematics technology in order to encourage lowered motoring costs.
The “black box” technology has been touted as leading to less expensive motor cover for those who can prove they are responsible drivers. With telematics boxes gathering information on motoring habits such as rate of speed, acceleration and braking, and what time of day drivers are on the road, those who demonstrate safe motoring can see hundreds of pounds subtracted from their insurance bills.
For all too many younger Brits, getting their own vehicle is one of the only ways they can me sure they will gain access to employment and jobs, Ms Greening said. The Transport secretary, who had met with insurance firms recently in order to encourage them to cut rates for young drivers, added that people living in more rural areas or without adequate public transport links are even more dependent on having their own vehicles.
However, most first-time drivers are subjected to almost criminally high insurance quotes, with the average price for annual comprehensive cover in excess of £3,500 for young men between the ages of 17 and 22, according to the AA. Young women of the same age are given some respite, but the AA’s research indicated that even they end up paying an average of nearly £2,300 a year.