There’s been plenty of media coverage over the last couple of years that has served to highlight the very high cost of young drivers car insurance
in the UK. It is estimated that 17-22 year old male drivers are paying about three times more than the average motorist for their car insurance policies. And there’s been plenty of discussion about the impact this has on everything from youth unemployment to the UK’s shocking levels of uninsured driving.
Shouldn’t we, however, take some time to remember why there’s such a discrepancy in pricing between younger and older drivers? Insurers base their car policy prices on actuarial analysis of the likelihood of a driver having an accident. Quite simply, all the evidence shows that younger drivers present a higher, indeed much higher risk. Let’s look at some facts and figures from RoSPA – the Royal Society for the Prevention of Accidents:
- Over 3,000 car drivers under 25 are killed or seriously injured each year.
- 20% of drivers have a crash in their first year on the roads.
- A third of male drivers aged 17 to 20 will have a crash within 2 years of passing their test.
- 18 year-old drivers are more than three times more likely to be involved in a crash as a 48 year-old motorist.
- New male drivers are more likely to have an accident and more likely to commit driving offences than their female counterparts.
The reasons behind these shocking statistics are equally well documented. Lack of experience; over-confidence; poor hazard perception; and peer group pressure, especially amongst young men.
All of these factors are considered when insurers work out what to charge for car insurance policies. The good news is that as these drivers get older, more experienced and safer on the roads, their premiums will drop accordingly.
We understand the difficulties that young drivers face in finding affordable car insurance. That’s why we produced a guide to car insurance for young drivers to offer hints and tips as to how to get cheaper policies. But we are also aware that insurers charge more your young drivers insurance because this group has more accidents and makes more claims than older, more experienced drivers.