Young drivers could see their car insurance premiums fall by as much as 20% if the ABI (Association of British Insurers) have their Safe Young Driver proposals implemented, in full, by the government.
This expected reduction, announced today at the ABI’s Motor Conference 2013, was based upon the average annual premium of a 17-18 year old driver in 2011: £1,853.
With road accident statistics stacked against young drivers, it’s inevitable that they pay the highest premiums, but the ABI plan to improve road safety for young drivers, and, in turn, bring costs down.
What are the ABI calling for?
The ABI are calling for the following plans to be put in place in order to significantly reduce the number of road casualties and deaths amongst young drivers:
- A one year learning period for young drivers.
This would mean that all learner drivers would have to have at least one year of driving lessons before being allowed to take the test, regardless of when they reach test standard
- A limit to the number of young passengers and restrictions to night time driving for a set period after passing.
Peer pressure can lead to young drivers ‘showing off’ and taking more risks on the road. Similarly, figures show that young drivers are more likely to be involved in a collision at night or in the early hours of the evening.
- A zero blood alcohol driving limit for new drivers, in place for a set initial period after passing their test.
Drivers ages between 17-24 are more likely to have a drink driving related accident per mile driven. It is thought young drivers take more risks and might not be able to measure their limit when it comes to the standard blood alcohol limit of 80mg/100ml blood.
Better road safety statistics will lead to lower premiums
Otto Thoresen, Director Gnereal of the ABI, said:
“Every car crash is a personal tragedy for those involved, family and friends. Sadly, young newly qualified drivers are at a much higher risk of having a serious crash on our roads which is reflected in the cost of their car insurance.
“Insurers want to see young drivers become safe drivers, which in turn will result in more affordable premiums. If the government implemented the ABI’s proposals, lives would be saved and the cost of car insurance for young drivers could reduce by 15-20%.”
The importance of improving road safety for young drivers was also approached by Andrew Parker, Partner at DAC Beachcroft, who are partnering the ABI at the Motor Conference. He said:
“Much of the recent debate on the cost of motor insurance has been about the excessive legal costs, but the toll of death and serious injury involving young drivers urgently needs to be tackled. These sensible proposals show that the industry wants to help – but insurers cannot solve this on their own.”
The plans are will now be considered, along with other safety proposals, by the government.
Image via akarmy at Flickr.