Car insurance costs are constantly on the rise and car insurance for young drivers is one area where the costs are rising faster than any other. Insurance companies and industry experts believe that a number of factors are driving the general rise in car insurance; uninsured drivers, fraud, personal injury attorneys and imaginative whiplash claims are all playing their part. However, for younger drivers statistics are large to blame when it comes to the costly promotions. Figures from the AA suggest that drivers in the 17 – 25 age group account for only 10-15% of drivers on the road. However the AA's figures show that they are likely to be behind 30% of accidents and nearly 40% of cash pay-outs. Little wonder that finding them car insurance is so difficult.
Targeting poor drivers
But should all drivers under the age of 25 be penalized for the poor driving skills of a minority? Many new drivers do display some overconfidence in their skills and may not accept that passing a driving test does not equal driving experience. As with so many things this is most likely a case of a minority of younger drivers spoiling the image – and the statistics – of the majority. Insurers believe that driving education and awareness can improve the skills of many young drivers and are also looking for ways to 'target' the minimum of poor drivers and reduce the cost of car insurance. Several insurers have introduced 'Pay how you drive' schemes – specifically aimed at the under 25 market to offer individuals the chance to demonstrate that they buck the trends associated with young drivers and access realistic insurance premiums.
These schemes involve the fitting of a smart box to the car – a sort of black box recorder which monitors driving skills. These include speeds, breaking and cornering techniques all aspects that can demonstrate that you are a good, low risk driver. The schemes can allow reasonable flexibility – driving in the evening and early hours will attract higher premiums for young drivers so avoiding these times can also cut costs.
Currently only a competent of insurers offer these schemes, however the chances are that they will become widespread. The insurance industry is highly competitive and in order to maintain their position in the young driver insurance market it is significantly that many insurers will begin to offer the scheme. The competitive nature of the industry is one area that any driver can take advantage of. Comparison shopping sites are most effective way to find the best price you can. When checking transactions for car insurance for the younger drivers, remember that not all compare the same insurers – so young drivers are best advised to search through several comparison sites to get the best spread of quotes. Car insurance for young drivers has always been expensive – even the industry is trying to address the rising cost for young drivers. In the meantime comparison shopping and taking advantage of a competitive market can result in savings.