Motor Insurance Premiums Fall for Young Drivers

Young British drivers will now be able to get on the road for less. According to the AA’s British Insurance Premium Index it now costs motor insurance for a young driver (between the age of 17 and 21) fell by 5.6 per cent last quarter in the UK. This has brought the average annual premium to a still hefty £2,294.

This news should provide some respite to young drivers who are already hit with high petrol costs, expensive tuition for driver training and the cost of buying a used or new vehicle. Despite the fall in rates, insurance premiums for young drivers are still very high. This owes to the risks these drivers are on the road due to poor decision making and inexperience. Nonetheless, some have pointed to these premiums as being too high.

There are further changes to come in this field as gender based pricing is due to expire in December 2012. This is good news for many drivers, yet females can expect to see their rates jump up as insurance companies balance prices between male and female motorists. This is generally a good move which should stop male motorists for being unfairly penalised, yet data still shows that they pose the greatest risk on the road.

Generally, insurance premiums are on the up, with the average cost increasing by 3.6 per cent in the last quarter. This reflects a long term trend which has seen year on year increases in premiums that have significantly affected many drivers of all ages. That said, the 3.6 per cent increase was generally seen as a levelling off and we can hope to see an end to these constant bumps.

In general driving has become a very expensive pursuit in Britain. Aside from insurance, motorists need to pay for MOT checks, frequent repairs and overpriced petrol. Indeed, the price of fuel is very high, especially when compared to other countries. The fall in insurance premiums for young British drivers is certainly welcome news, however, it comes in a setting which sees motorists confronting an ever more expensive commute to work. Hopefully, this trend will reverse itself as well.