Car insurance premiums could fall by up to 20% for young drivers

 

Car insurance premiums could fall by up to 20% for young drivers

 

Ahead of the expected government consultation on young driver education, training and testing, the insurance industry has  announced that car insurance premiums for young newly qualified drivers could fall by around 15-20% if the government implemented in full the ABI’s Safe Young Driver proposals. The single biggest cause of accidental death of young people aged 15-24 olds dying is in a car, with 40% of 17 year old males having an accident in their first six months of driving.

In its report issued last year, ABI called for:

• One year minimum learning period for young drivers.

• Limiting the number of young passengers and restrictions on night time driving for young drivers for an initial period after passing their driving test.

• Zero blood alcohol driving limit for an initial period after a young person passes their driving test.

Currently the government is considering measures, including the ABI’s proposals to improve young driver safety.

ABI says:

• Young drivers could pay between around 15-20% less for their car insurance if the government introduce in full ABI proposals to improve young driver safety

• Average annual premium of a 17-18 year old driver: £1,853*

• Potential reduction in a 17-18 year olds premium: up to £370** a year

• Nearly 3 million young people who hold a driving licence could benefit, which is nearly 8% of Briton’s licence holders ***