Hardly a week goes by without an article about young drivers and the plight they face trying to sit behind the wheel.

We are constantly reminded that statistics show 1 young driver in 5 has a bump or something more serious in their first year behind the wheel. But this statistic has been around for over 20 years, so that is not the reason why premiums for that sector increased out of all proportion at the back end of 2009.

The Driving Standards Agency is doing all it can to improve the levels of training but communicating with over 40,000 driving instructors is a mammoth task. A big step was taken with the introduction of Pass Plus but many insurance companies simply ignore this.  Pass Plus may or may not influence the accident figures but, with a low take up, it will have little impact on the overall premiums. More changes to the learning to drive process are in the pipeline, following a massive consultation but these will take years to have a meaningful impact on premiums for new drivers (if indeed they ever will).

Go back just a few years and you will find the first part of the answer – inertia or as now, a lack of inertia.

When a young driver went to an insurance company, that insurance company was relatively safe in the knowledge that the driver would stay with them for a few years. Perhaps it provided insurance for the parents, so the insurer could view the driving profile of the parent and make a reasonable assumption about the driving skill of their offspring.

Schemes would be concocted which would allow the insurer to spread the risk over a number of years of premium receipts. An example of this was no claim discounts for named drivers, which built up a financial benefit of following in parents’ footsteps.

Often the insurance company would know full well that Mummy insured a car with Sonny as a named driver but the car was really used by Sonny. The insurer would turn a blind eye to fronting and allow them to build up a little no claim discount as a named driver to encourage them to take that big step in their own name a few years later.  Four young drivers out of five did not have a bump, so the insurers could cover their book by hanging on to the customer over a period of time.

Move forward a few years and the internet is thrown into the equation. Drivers can now go to the Confused Meer Kat in a Supermarket and get the best deal for them – right here, right now. Nothing wrong with that, but loyalty has now gone through the windscreen. The insurer now has as little as one year’s premium to recover the risk profile for an individual driver, so it has to increase the price in an attempt to balance the books.

The second part of the answer is down to the growth in the compensation culture.

First time drivers are paying so much for insurance that they can only afford cheap cars and these cars do not have the modern controls needed in an emergency.  The insurance company then faces claims for third party car hire, legal fees and Miss Whiplash dipping her sticky fingers in the honey pot, which have all led to a massive increase in the value of claims. The insurance company also has to consider the potential liability to a young driver’s passengers in the event of a single vehicle incident.  These tend to happen late at night through distraction or the inexperienced driver not picking up rapidly changing driving conditions.

If this is not enough, a further blip has recently appeared on radar. A number of insurance companies took advantage of non-domicile status to keep premiums down as this had an impact on the treatment of VAT on claim payments. Her Majesty’s Revenue and Customs is now questioning this position and this has affected insurance companies, many of which specialise in the young driver sector.

It is a vicious circle and inexperienced drivers will continue to pay a higher price as the number of insurance companies left to look after that sector is diminishing. Some insurance companies have just upped the minimum age to 21 or in some cases 25 and others are likely to follow or, as in the case of non-doms, have simply pulled out of the market. Every young driver is tarnished with the same brush, regardless of their skill behind the wheel – the insurer simply does not know if they are a good risk or not.

Parents can spend ages trawling the web to find that elusive low cost insurance premium. Premiums do move during the week depending upon the number of sales, so they may be lucky and make the enquiry just when the insurer is trying to reach a weekly target. More often than not it is a frustrating exercise and the exhausted parent feels like a hamster in a wheel – getting nowhere, fast.

So how does a parent tackle this problem?

There are specialists in the young driver sector that manage the risks for the insurer. Some use technology to limit the times that a young driver can be behind the wheel, providing financial incentives to avoid driving at high risk times. Another specialist uses what Richard Hammond calls “a clever idea” to make much safer cars an affordable proposition. A combination of these factors creates a balance of safety and cost, which is often less than the cost of traditional insurance.

Others look to increase the training for young drivers but there is no proven end result to stop the insurance companies turning to a less risky sector of the market – a well trained inexperienced driver is still an inexperienced driver. There is no substitute for claim free years under the belt to bring premiums down to sensible levels and the quicker the young driver can achieve that, the better.

© Nigel Lacy – co-founder of Young Marmalade
www.youngmarmalade.co.uk

120 Responses to “Why is insurance for young drivers so high?”

  • Hi, great point. Posts like this post are why I read your blog. Have a great 2010!

  • Simply want to say your article is as tonishing. The clearness in your post is simply spectacular and i can assume you are an expert on this subject. Well with your permission allow me to grab your rss feed to keep up to date with forthcoming post. Thanks a million and please keep up the gratifying work.

  • YES! Great piece, keep up the terrific work. This is the type of information that should gain recognition for it’s craft. More writers should learn from you. This is right on the money.

  • I had to refresh the page 2 times to view this page for some reason, however, the information on here was worth the wait. I loved that it is also really easy to read for the eyes.

  • Thanks. Some great infomation here good work. I can’t contribute a decent comment as i’m abit out of my deph I will be checking back here periodically for your new updates.

  • thankyou. Some wonderful infomation here keep up the good work. I cannot really leave a constructive comment as i am abit out of my deph I will be checking back here periodically for your new updates. london insurance 30 St Mary Axe, london, EC3A 8EP 020 7193 4776

  • Yet another significant components is your age, young drivers are regarded being higher danger, mainly because they don’t have adequate knowledge driving and simply because statistically they result in additional accident. Also incredibly old drivers are much more probably to possess greater rates of mishaps.

  • Thanks for writing a post about this. You have a bunch of wonderful information here on your web site. I’m very! I try to keep a couple blogs somewhat live myself but it’s a struggle sometimes. You’ve done a great job with this one. How do you keep up?

  • Wouldn’t it be so awesome to find out there is really a Bigfoot?? I mean totally freakingamazing.

  • Cheers for the post – I enjoyed reading it!

  • I can t describe how refreshed I find myself to read and reccomend your post. Its well written and holds quality information. carry on the great work!

  • How imaginative article, I have never seen such a good article.

  • I have been perusing a few of your posts and have enjoyed it. Keep it up

  • This is my second visit to this blog. We are starting a new initiative in the same niche as this blog. Your blog provided us with valuable information to work on. You have done a fantastic job.

  • Thank you for another informative blog. Where else could one get that kind of information written in such a perfect way? I have a presentation that I am just now working on, and I have been on the look out for such info.

  • Recently, I did not give whole lot thought to commenting on weblog articles and have left feedback even less. Viewing your useful piece of writing, might inspire me to do this again.

  • Hi… I don’t know if you’ve been making changes, but your pages aren’t displaying correctly for me. The edges of the text are running into each other. I didn’t do this the other day. I don’t know if it’s something on my computer or if you’ve made a change… Just thought you might want to look at it. Thanks!

  • If you don’t mind me asking I just wanted to get the scoop on what is the difference between blogenenigne and wordpress blogs? Is it easier to use or more efficient? I amseeing a lot of blogs powered by this software popping up lately and wondering if it is better or not? Thanks…

  • Thank you for such a fantastic blog. Where else could anyone get that kind of info written in such a perfect way? I have a presentation that I am presently working on, and I have been on the look out for such information.

  • Thanks for taking the time to share this, I feel strongly about it and love reading more on this topic. If possible, as you gain knowledge, would you mind updating your blog with more information? It is extremely helpful for me.

  • I’ve never learned so much from any other blog. Enjoyed reading this today.

  • Been researching this most of the day this was very helpful thanks.

  • Intimately, the post is in reality the greatest on this valuable topic. I agree with your conclusions and will thirstily look forward to your incoming updates. Just saying thanks will not just be enough, for the fantasti c lucidity in your writing. I will instantly grab your rss feed to stay informed of any updates. Admirable work and much success in your business enterprise!

  • Wonderful to be visiting your website again, it’s got been months for me. Well this short article that i’ve been waited for so extended. I have to have this short article to complete my assignment inside the college, and it’s identical topic with your article. Thanks, great share.

  • You certainly have some agreeable opinions and views. Your blog provides a fresh look at the subject.

  • I just book marked your blog on Digg and StumbleUpon.I enjoy reading your commentaries.

  • Thanks for posting this info. I just want to let you know that I just check out your site and I find it very interesting and informative. I can’t wait to read lots of your posts. . . .

  • A friend of mine told me to check out your blog. This is just the kind of details I was hunting for. I wish I have come across your website earlier.

  • Well, this is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us valuable information to work on. You have done a marvellous job!

  • I am not really sure if best practices have emerged around things like that, but I am sure that your great job is clearly identified. I was wondering if you offer any subscription to your RSS feeds as I would be very interested.

  • Have found your web page. My pal mentioned it to me before, yet never got around to checking it out until now. I must express, I’m floored. I really enjoyed reading through your posts and will absolutely be back to get more.

  • Very Interesting Information! Thank You For Thi Blog!

  • What a good blog you have here. Please update it more often. This topics is my interest. Thank you. . .

  • You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material

  • I really enjoyed reading this article, I was just itching to know do you trade featured articles or blog posts? I am continuously in search of someone to make trades with and merely thought I might ask.

  • Have you thought of adding some videos to your posts to keep the visitors more entertained? I just read through the entire article and it was good¡­thanks for the share

  • A thoughtful opinion and ideas I will use on my website. You’ve obviously spent some time on this. Well done!

  • I just wanted to comment your blog and say that I really enjoyed reading your blog post here. It was very informative and I also digg the way you write! Keep it up and I¡¯ll be back to read more soon mate

  • This has definitely sparked up an idea in my mind. This can be a superb weblog submit.

  • Thanks a lot for the blog. Fantastic.

  • noni:

    Awesome Post. I add this Post to my bookmarks.

  • I just book marked your blog on Digg and StumbleUpon.I enjoy reading your commentaries.

  • I’ve been visiting your blog for a while now and I always find a gem in your new posts. Thanks for sharing.

  • I’ve bookmarked, Dugg, and I joined the RSS subscription. Thanks!

  • I find myself coming to your blog more and more often to the point where my visits are almost daily now!

  • noni:

    You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material

  • I am not in reality sure if greatest methods have emerged roughly things like that, other than I am confident that your large work is clearly recognized. I was questioning if you offer any registration toward your RSS feeds as I would be extremely interested.

  • I enjoy the journalism relevancy of your blog and it will a beautiful decent job of presenting the info.

  • After spending several hours online at last We have located an individual that seriously does know what they’re preaching about appreciate it a whole lot fantastic posting.

  • You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material.

  • I am happy to locate so loads of helpful information here into the post, we require enlarge further strategies inside this regard, thanks for sharing

  • Greetings to all, This webpage is good quality and so is the manner in which the issue was developped. I like some of the comments too though I would prefer we remain on the topic so that to add value to the point. It will be also encouraging to the one who penned it down if we all could mention it (for those who use social media such as a delicious, twitter,..). Thanks again.

  • I was wondering where you got your layout? Its great Looking.

  • I like this information shown and it has given me some sort of inspiration to succeed for some reason, so thank you.

  • Aw, this is a really quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate alot and never seem to get anything done

  • I am delighted that I’ve observed this weblog. Ultimately some thing not a garbage, which we examine extremely usually. The web site is lovingly controlled and up-to-date. So it ought to be, thank you for this welcome adjust.

  • I am really impressed with the quality of your blog. It is easy to determine that you are fervent about your writing. If I had your writing ability, I know I would be successful. I have bookmarked your site and look forward to more updates.

  • Informative post, this is. It is always nice to come across a post that is useful.

  • I normally don’t respond lying on web-sites but you boast a little fine readable post.

  • Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon.

  • I find myself coming to your blog more and more often to the point where my visits are almost daily now!

  • Hey dude, do have a newsletter? If you do not most def need to get on that piece…this net site has some sound data!

  • ———————————————————–
    “How-do-you-do, just needed you to know We’ve added your site to my Yahoo and google bookmarks due to your extraordinary blog site layout. But very seriously, I feel your web site has 1 of the freshest theme I have arrived across. It truly aids make reading your blog a great deal simpler.”

  • Very Interesting Blog! Thank You For Thi Blog!

  • Wow, thanks for actually using proper English. I looked at a couple before this and it appeared as though a 5 year old typed it up.

  • Hi I like your post and it is so fabulous and I am definetly going to save it. I Have to say the Superb analysis this article has is greatly remarkable.Who goes that extra mile these days? Well Done!! Just another suggestion you caninstall a Translator for your Worldwide Readers …

  • You completed a few good points there. I did a search on the matter and found mainly persons will agree with your blog.

  • Outstanding post, you have pointed out some excellent points , I as well think this s a very superb website.

  • At Last! Ive been looking for this info

    car leasing

  • I’ve been visiting your blog for a while now and I always find a gem in your new posts. Thanks for sharing.

  • Me and my close friend were fighting about an problem similar to this! Now I know that I was right. lol! Thanks a lot for the information you article. Best wishes, Breanne.

  • Remarkable piece, thank you, I will bookmark this in a while.

  • I’ve been visiting your blog for a while now and I always find a gem in your new posts. Thanks for sharing.

  • Do you always write this stuff, over you head.. Great article! Tell me more, let it come.. You are master. Laughing

  • Thank You For This Blog, was added to my bookmarks.

  • Good blog post. I like your point of view and i want to thank you for interesting and helpful information. Thank you!

  • Pretty nice post. I just stumbled upon your weblog and wanted to say that I have truly enjoyed surfing around your blog posts. In any case I will be subscribing to your feed and I hope you write again soon!

  • Thumbs up for this thread!

  • Amusing text. Gratefull and waiting for another one.

  • Thanks for this entry. Waiting for next one.

  • Took me time to read some the comments, but I actually enjoyed the post. It proved to become pretty beneficial to me and I am positive to all the commenters right here! It’s always good when you can not only be informed, but also entertained!

  • You certainly have some agreeable opinions and views. Your blog provides a fresh look at the subject.

  • would love to incessantly get updated great site ! .

  • Very Interesting Blog! Thank You For Thi Post!

  • I just book marked your blog on Digg and StumbleUpon.I enjoy reading your commentaries.

  • I’ve been visiting your blog for a while now and I always find a gem in your new posts. Thanks for sharing.

  • Thank you for the entry. I nearly handed your weblog up in Yahoo but now I am glad I checked it out and obtained to go as a result of it. I’m absolutely a tiny much better knowledgeable now. I know very a couple of folks which will would like to check it out. They’ll for sure delight in the heck out of what I just study very. LOL. –Matt

  • We are a group of volunteers and starting a new initiative in a community. Your blog provided us valuable information to work on.You have done a marvellous job!

  • An cool blog post there mate ! Cheers for the post .

  • Now and then I’ll stumble across a post like this and I’ll recall that there really are still interesting pages on the web. ^_^. Thanks.

  • I was very pleased to find this site.I wanted to thank you for this great read I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you post.

  • I think youve got something good here. But what if you write a couple links to a page that backs up what youre saying? Or maybe you could give us something to look at, I could revisit & read more sometime soon!2

  • Hey I much like your blog found yourself on google and its good to determine that we now have honest individuals.

  • It shows how well you understand this subject. Bookmarked this page,thanks god someone that actually knows what they are talking about – thank you!4

  • I just stumbled on your blog when I was lookng on google. I have to say that the information here was the most complete that I found anywhere. I am definitely bookmarking this to come back and read later.

  • I’m often to blogging and i really appreciate your content. The article has really peaks my interest. I am going to bookmark your web site and keep checking for brand spanking new information.

  • Thank you for an additional fantastic blog. Where else might one get that kind of knowledge written in such a perfect way? I even have a presentation that i’m presently working on, and that i are searching for such data instead.

  • Hi I like your comment and it is so good and I am gonna save it. One thing to say the Indepth analysis you have done is trully remarkable.No one goes that extra mile these days? Well Done :) Just another suggestion you caninstall a Translator Application for your Global Readers !

  • Wow, this was a really quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate a lot and never seem to get something done.

  • Nice post. Usually uncover quality articles here on this website. Appreciate you sharing. I am excited to add this website to my faves. Also, I am interested in paying for ad spaces here. Looks like a sweet blog to advertise on. Great posts and beautiful layout. Send to my email the advert information if you’d like. Gracias!!!

  • excellent article very helpful will visit again one day

  • Greetings to all, This webpage is good quality and so is the manner in which the issue was developped. I like some of the comments too though I would prefer we remain on the topic so that to add value to the point. It will be also encouraging to the one who penned it down if we all could mention it (for those who use social media such as a delicious, twitter,..). Thanks again.

  • After spending several hours online at last We have located an individual that seriously does know what they’re preaching about appreciate it a whole lot fantastic posting.

  • Kudos for posting such a useful weblog. Your weblog is not only informative and also looks good too. There usually are very few people who can write not so simple articles in a creative way. Keep up the good work !!

  • Nyah:

    Writer, great article. Superb website. It’s quick and pithy. The climacteric transitions are impeccable. I was wanting to know if you might be interested in writing for us in your free time.
    If you are indeed interested, you have the talent to bring in at least $500+ a day. We just have a handful of openings.
    Information
    -Nyah

  • Great post but I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit more. Cheers!

  • I do like the way you have framed this specific concern and it does indeed offer us a lot of fodder for thought. On the other hand, from what I have witnessed, I really hope when other commentary pile on that men and women remain on point and in no way start upon a tirade of the news of the day. All the same, thank you for this fantastic piece and though I can not necessarily go along with the idea in totality, I value your perspective.

  • Interesting thoughts here. I appreciate you taking the time to share them with us all. It’s people like you that make my day

  • I enjoyed reading your blog & I must congratulate you.. this is a work of art!

  • Generally I do not post on blogs, but I would like to say that this post really forced me to do so. Really nice post!

  • Its good as your other blog posts : D, regards for posting .

  • I’ve recently started a blog, the information you provide on this site has helped me tremendously. Thank you for all of your time & work.

  • Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!

  • good info glad to see

  • Hello this is amazing site! really cool and it will be a new inspirations for me

  • I really liked reading your post!. Quallity content. With such a valuable blog i believe you deserve to be ranking even higher in the search engines :)

  • There is apparently a bundle to realize about this. I feel you made some good points in features also.

  • My brother suggested I might like this blog. He was entirely right. This post actually made my day. You can not imagine simply how much time I had spent for this info! Thanks!

  • You should do a follow up post on this. give a little bit more information and sources to expand on your current article. Overall, I thought it was great though. I’ll bookmark your site to come back later to see if you posted another one.

  • Excellent blog here! Also your site loads up very fast! What web host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as quickly as yours lol

Leave a Reply