High Cost of Insurance Deterring Young Drivers

The age group of 17 - 22 Year old youngsters taking a driving test has fallen by 19% since 2005. According to Newsbeat that is a drop of more than 200,000.

Much of the drop has been related to the increase of cost of learning to drive and then the cost of running a car. Insurance for young drivers is too over priced and based on stereotypical values. Statistics show that most young drivers will have an accident within two years of gaining their license.

It has been reported that young drivers end up spending about 18% of their full time salary on the car insurance itself and it can be anywhere from an average of £2,499 a year to a much higher figure. In the last year or so, the cost of car insurance has started to fall.

The new EU legislation will mean companies won't be able to charge different amounts based on gender, where earlier most women would get a slightly better deal than the men. What are your views on this matter?

File Filed by Anna John. | Comment Leave a comment.
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