Young drivers are hit harder every year on insurance costs.
Car insurance – Government debate £1,200 cap for
young drivers as costs SKYROCKET
Changes to personal injury compensation claims meant that UK drivers are set to be struck by increased insurance premiums.
Young and old drivers may be affected the most by the new rates.
Motorists under 22 could see their insurance premiums skyrocket by £1,000 while those over 65 could pay up to £300 more, accountancy firm PwC predicted. The reason for the increase is after the rate used by courts to calculate serious injury claims changing from 2.5 per cent to minute 0.75 per cent.
On March 20th, the Government were debating a car insurance cap for young drivers of £1,200 after an online petition gained 185,000 signatures. Rhys Parker, 19, started the petition online saying he was quoted £2,500 for his first year of driving, before eventually getting it down to £1,400. “That’s very much basic insurance. I think it’s ridiculous. Young people just don’t get the help they need.”
Steve Double, Conservative MP (St Austell and Newquay) opened the debate. He said: “We need insurance companies to treat young people fairly. There is a case for greater transparency in the premiums charged to young drivers, and for companies to behave more responsibly. We want them to be able to drive and to have access to insurance that they can afford, but we want that to happen in a way that keeps them safe and that sees the number of tragic accidents among young people reduced. It is a competitive industry, and any attempt to cap the price that insurers charge would surely simply result in other groups having to pay more than they should.