Survey reveals young driver insurance frustration

73% of young drivers under the page of 25 claim their social lives are being adversely affected by high insurance costs, according to a survey this week by broker Swinton.

Here are some of the key findings from the 2,900-strong poll:

  • 90% of youths believe a car allows them to be more independent
  • 51% believe motoring costs are a ‘rip off’
  • Car insurance costs cause 27% to cut back on buying clothes, 27% nights out and 17% holidays
  • 64% of young car owners reported being used as a ‘taxi service’ by friends
  • 66% said they would install a black box device in their car if it significantly reduced insurance costs
  • Over a quarter surveyed claim to have driven their parents car uninsured, or know someone who has done.

This survey reiterates the message we already knew – car insurance has gotten out of control for young drivers.  It’s encouraging to see that two thirds of those surveyed would opt for telematics-based insurance, which is proving to be a market gaining real traction among teenagers in particular.

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Young drivers lie about details for cheaper car insurance

A study conducted by myvouchercodes.co.uk has found that a quarter of young drivers have lied to insurance companies, changing their policy details to engineer a cheaper quote.

Have you lied about your car insurance?

Have you lied about your car insurance?

68% of those surveyed were not aware that this practice is illegal and can invalidate their insurance.

More than half of respondents admitted to engaging in ‘fronting’ – falsely claiming that a parent is the main driver of their vehicle.

Other lies include failing to disclose car modifications, or claiming that the car is kept in a garage.

Young drivers should not have to resort to such measures – at least start by choosing a car in a low insurance group!

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Car insurance for young drivers – Why so expensive?

Many of the visitors to CarInsuranceGroups.co.uk are younger drivers, keen to check how much specific cars might increase the cost of their insurance.

As we get older, not only do we tend to have more disposible income, but we also build up a no-claims history which can substantially limit the cost of insurance premiums.

Young drivers however are typically on tight budgets, and have no evidence or whether they’re good drivers or not.

With this in mind, choice of car become very important in managing the cost of your insurance.  It’s one of the few variables you can actually control!

Insurance is all about balancing risk.  The more risky an individual is deemed to be, the more they have to pay for their insurance.  Simple.  A 35-year-old man driving a 1.1l Corsa might typically claim for a minor car park prang causing just cosmetic damage – a relatively low financial cost to the insurer.  However, an 18-year-old driving a Toyota Supra is much more likely to cause a far more serious – and costly – accident involving injury to themselves or others.

The problem is not that all young drivers are bad – far from it.  However in this case, a couple of bad eggs really can spoil things for everyone.  With no other data to base things on, insurers simply lump young drivers together.

A solution?

One solution currently gaining traction in the marketplace is the use of telematics devices to help insurers further break down the young driver category and assess individuals based not on their age, but by factoring in how they drive.

Some insurers place curfews, preventing young drivers being on the road at night (statistically the most dangerous time to be driving).  Others impose mileage limits.  However these two methods are fairly restrictive.  The more advanced telematics insurance solutions are assessing driving style in greater detail, giving young drivers greater freedom without such limitations.

As these products gain momentum, and young drivers become less wary of having a device fitted to their car in favour of the financial benefit, we could see young drivers find a way back into the market.

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Welcome to our blog!

This blog post marks the launch of CarInsuranceGroups.co.uk, what we’re hoping will be the most usable car insurance group tool on the web.

In the coming weeks and months you can expect to find updates on our tools and content from the main site, plus insights and news from the car insurance and motoring industries.

Stay tuned, and if you have any feedback on the site, please don’t hesitate to get in touch!

 

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