Are young drivers paying too much for car insurance? Many people think so, and that is why MPs in Parliament are now going to debate the issue.
This all started with an online petition, that got 185,000 signatures. Any petition that gets over 100,000 signatures automatically becomes a topic that is to be debated in Parliament
Capped at £1200 a Year
The general argument here is that young drivers between the ages of 18 and 25 are paying way too much for car insurance, and people who signed the petition believe any policy should be capped at £1200 a year.
I can definitely confirm that prices are getting more outrageous for young drivers. It was only a few weeks ago that I reported on a story about a new driver who got quoted £8000 for a policy, even though her car was only worth £150.
Young Drivers Earning Below Minimum Wage
Rhys Parker started the online petition last year, after he himself got quoted £2500 for car insurance for his first year of driving. The fact that Rhys was earning below minimum wage meant that this kind of insurance policy was completely unaffordable, and that gave home the idea of starting the petition.
Well, it seems that many young drivers around the country agree with him, because 185,000 signatures is quite an achievement, and now of course the subject is set to be debated in Parliament.
It’s worth noting this will just be a debate, and MPs will have no power to actually bring in any new rules even if they all agree to capping the price.
No Need for a Debate, Here are the Facts…
In my opinion though I don’t think a cap should be introduced, for the reason that younger drivers get a more expensive price for a reason.
The simple fact of the matter is that drivers in this age range are involved in far more incidents than anyone else, and the car insurance companies take this into account when coming up with a quote.
Yes some of the quotes offered can seem completely unreasonable, especially when someone isn’t even earning minimum wage, but at the end of the day the insurance company has to come up with a quote they believe to be right. I don’t think there should be any interference from Parliament in this.
Cheap for Young Drivers, More Expensive for Everybody Else
Also, if there was a cap of £1200 for young drivers introduced, then car insurance companies would most probably be losing money, which would then lead them to make it up elsewhere.
In other words, other drivers would see their premiums get more expensive, as they try to make up for lost revenue.
Telematics is the Answer
My advice to any young drivers out there is go with telematics so that car insurance companies can monitor your driving style, and if you do everything right then you will start to get cheap car insurance quotes.