Younger motorists have been trading their freedom for less expensive motor insurance, as a new pilot programme is fitting video cameras in their cars in exchange for a 15 per cent discount on their insurance premiums.
While it’s easy to point the finger at the nation’s car insurance companies in order to ask them just where in the world are all those premium payments going to, it’s easy to forget that the entire motor industry in the UK hasn’t turned an underwriting profit in 18 years straight – but this year could be different, for once.
If you think you’ve got problems, just be glad you’re not a new driver: new research shows the average 18 to 21 year old spends just shy of £2,500 a year on their motor cover – which is around 20 per cent of the typical young Brit’s annual salary.
Everyone knows it’s nearly impossible to find discount car insurance for young drivers in the UK, but a new survey recently highlighted just how badly the nation’s younger generation is getting hosed when held up against other age groups.
Enough is enough, one insurance expert says, who recently said that car insurance companies need to quit dragging their feet and adopt telematics-based cover in order to provide less expensive cover to their customers.
There’s ‘no one silver bullet’ to end the nation’s high car insurance rate woes, according to Transport Secretary Justine Greening, who presided over a Whitehall motor car insurance summit this week that saw proposals to increase availability of discount car insurance for young drivers and using independent medical panels to reduce whiplash claims.
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.
The Government has said that it wants to see the rise of discount car insurance for young drivers while simultaneously looking to discourage people from getting behind the wheel without cover and driving car insurance rates into the stratosphere.
The last few years have seen young male drivers bearing the largest burden when it comes to motor car insurance cost increases, as massive car insurance rate hikes have led to many young men being priced right off the road or even driving without insurance.
Researchers say that car insurance rates have finally begun to level out after year after year of increases, with new statistics showing annual motor car insurance premiums finally beginning to fall on average.