Are the prices young drivers pay for car insurance justified?

Car insurance

For young drivers, the cost of insurance is excruciatingly high, with the average cost being around £2,100 a year. When compared to around £500 for the average policy in the UK this is a four-fold increase. With the prices not expected to fall anytime soon you may be thinking, is this justified?

But why?

Only 7% of the roughly 40 million full driving licence holders in the UK are under 25. However, they accounted for around 25% of the 140,000 personal-injury road traffic accidents.  We did the mathematics for you and worked out that young people are therefore almost 5 times more likely to be involved in an accident than an adult.

The fact that such a small percentage of drivers have accounted for a quarter of crashes in the UK during 2017 is shocking. But, encouragingly, when you look at the statistics published by the Department of Transport, the amount of serious accidents involving at least one young driver has actually decreased by roughly two-thirds over the last 20 years.  That trend will only continue, lowering costs for young drivers.

Young drivers are almost five-times more likely to be involved in an accident. This might account for why they are charged four-times as more for insurance! Also, insurance companies depend on customer loyalty.  Once they have won a customer they see them as potential customers for life and not just in terms of car insurance, but house insurance, life insurance etc. too.

What about a black box?

Some young drivers choose to fix a black box which will lower insurance to an average of £1,443. A black box allows you and your insurer to view exactly how you’re driving. It logs data from the way you accelerate, brake, cornering and your speed. Also, young drivers can take advanced driving courses to lower insurance costs.

Is it justified?

Based on the data, young drivers are clearly being charged a fair amount for car insurance.  But, the insurers are also trying to give them a helping hand. Maybe self-servingly to lock young drivers in as customers, by offering them programmes that lessen the blow.

But, at the end of the day, when young drivers eventually hit the road, they’ll need to keep their cars in tip-top conditioning by booking all their car servicing needs via bookmygarage.com

Libby Simmons

Libby has been working for BookMyGarage since August 2017; writing articles, creating newsletters and handling the social media platforms. She works closely with ex-mechanics and subject matter experts to provide weekly blogs: essential advice on how to care for your car, need-to-know news and developments in the motoring world and helpful tips on how to cut the costs of running and maintaining your car.

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