Insurance costs still too high for first-time drivers


So it may be true that car insurance rates are down on average overall, but you’re still not likely to find cheap car insurance for young drivers anytime soon.

In fact, new data from a major car insurance comparison website found that the proportion of cash that new drivers pay to keep their cars on the road absolutely pales in comparison to more experienced drivers. On average it takes anywhere between £3,000 to £4,000 to keep your vehicle running – or around 15 per cent of your yearly income, but older drivers only spend 9 per cent of £3,000 to £4,000 figure on car insurance, while younger drivers pay a whopping 30 per cent of that figure on the same level of cover!

Hearing news stories like this drives me absolutely mad. I know that car insurance companies will say that new drivers are inexperienced and therefore more likely, statistically, to be involved in accidents, but a difference of 21 percentage points is absolutely huge!

To make matters worse, younger motorists are often the target of scams and fraud when it comes to procuring insurance. In fact, another news story this week detailed how police are issuing warnings to young drivers about getting caught up in a fake policy scam.

The 17 to 30 year old crowd is being targeted by so-called ‘ghost brokers,’ scammers that are purportedly offering cheaper car insurance to their customers but are often just taking them for a ride. These brokers take the money of these hapless drivers with a promise to provide them with cut rate insurance but instead just pocket the money and provide them with fraudulent insurance documents – and oftentimes the poor driver has no idea he or she has been motoring about without any insurance until it’s too late!

Being caught with invalid car insurance is a pretty serious offence, and it’s even worse if you only discover the deception after you’ve been in an accident that requires you to make a claim. Suddenly you realise that not only are you going to have to pay for any damages out of pocket, but when you go to finally get real cover, there’s no insurer in the land that’s going to offer you an inexpensive policy. It doesn’t matter that it’s not your fault and that you got duped – insurers only see that you were caught driving about without cover, so they classify you as the worst kind of risk. It never rains but it pours, yeah?

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