Record-high car insurance premiums are driving more young people to take the risk of driving without insurance. According to road safety charity IAM RoadSmart, the number of drivers aged 17 to 20 caught driving uninsured increased by 118% from 2021 to 2023. This surge in uninsured driving coincides with the rapidly rising insurance premiums for young drivers.
To address this issue, IAM RoadSmart is calling on the government to take action. The charity is urging the government to halve insurance premium tax for young drivers and completely exempt those who undertake further training from the tax. Additionally, IAM RoadSmart wants the current road safety strategy to be updated to prioritize skills development and training.
Insurance comparison site Quotezone has provided further evidence of the rising premiums for young drivers. The site revealed that 19-year-olds have seen their premiums increase by 47% since last year, while 18-year-olds and 17-year-olds have experienced even higher increases of 60% and 77%, respectively. The average premiums for young drivers also vary across different regions in the UK. London is the most expensive area, with 18- to 24-year-olds paying an average of £2811, while Northern Ireland is the cheapest at £1359.
The increasing cost of insurance is a concern for young drivers like Josh Burford. Burford, who is turning 17 this month, has been researching insurance options for his Hyundai i20. He has been quoted £1000 for his own policy or £300 on his parents’ policy but has chosen the former. Burford plans to build up a year’s no-claims bonus to reduce future premiums. However, once he passes his test, his insurance will rise to £2500, including the balance of his learner cover.
Burford’s experience highlights the potential benefits of additional training for young drivers. He participated in a Young Driver Foundation course when he was 14, which taught him the principles of car control. According to the organization, only 3.2% of drivers who have taken their course have an accident within six months of passing their test, compared to the national average of 20%. Burford believes that his Young Driver training should be taken into account by insurers when calculating premiums.
In a promising development, the Young Driver organization is set to announce a partnership with a major insurer. The partnership will offer premiums starting from around £1500 for graduates of the Young Driver scheme. This initiative aims to provide more affordable pricing for young drivers who have proven to have fewer accidents.
Overall, the increasing number of young people driving without insurance is a concerning trend. The combination of record-high premiums and limited options for affordable coverage is pushing young drivers to take risks. It is crucial for the government and insurance industry to work together to find solutions that make insurance more accessible and affordable for young drivers. Additionally, initiatives like the Young Driver scheme can play a valuable role in improving the skills and safety of young drivers, which should be reflected in their insurance premiums.