This petition was submitted during the 2015–2017 Conservative government
Petition Stop car insurance companies ripping under 25s off with sky high prices
Car insurances prices for under 25s is a joke, they are sky high and wrong everyone should be in titled to a fair price why should a 30-50 year old with the same driving experience as an 18 year old be 1000s of pounds cheaper it's wrong and a form of discrimination and something needs to be done.
Young drivers are facing insurance premiums nearly four times more expensive than the average driver, The 17 to 20-year-old age group has seen an 8.2% annual rise in premiums, comparison website Confused.com said.The Commons Transport Committee was told young motorists believe they are being priced off the road.The average price of a premium for a 17 to 20-year old in the third quarter of the year was £3,878 when insured as the only driver. The average older driver is priced at £1,006.
This petition is closed This petition ran for 6 months
This response was given on 25 February 2016
Responsibility for setting premiums rests with insurers. The Government is strengthening the learning to drive process so that drivers can present themselves as a lower risk and obtain lower premiums
Read the response in full
The Government is aware that the cost of motor insurance can be high for new drivers and understands the concerns that have been expressed about this. The average cost of motor insurance for the 17-22 age group was estimated to be £1277 as at January 2016 (MoneySavingExpert.com).
It is important to bear in mind that motor insurers have to provide unlimited cover against the risk of personal injury to third parties and cover of up to one million pounds for property damage.
They use a wide range of criteria to assess the potential risk a driver poses and this includes the age of the applicant, the type of vehicle being driven, the postal area where the applicant lives and his/her driving experience.
Figures from insurers show that as many as one-fifth of newly qualified drivers make a claim within the first six months.
Whilst Government cannot intervene directly in the setting of premiums, what it can do is help to establish a situation where young and newly qualified drivers are better equipped for a life of independent driving.
Accordingly, the Government has taken forward a programme of measures to strengthen the way people learn to drive and are tested and to provide opportunities for additional training for newly-qualified drivers. We have also engaged insurers in this process, so that they can have confidence that additional measures will make a real difference that can be rewarded.
We are focussing our efforts on encouraging learner drivers to do more practice and to practise in a wider range of driving conditions; on ensuring that the driving test assesses the skills needed for today’s roads and vehicles and those of the future; and on identifying the most promising behavioural, educational and technological interventions that can reduce young driver casualties. The Government’s Road Safety Statement, published on 21 December 2015, announced a £2 million research programme to identify the best possible interventions for learner and novice drivers.
The Road Safety Statement also conveyed the Government’s wider commitment to addressing concerns about motor insurance premiums for all drivers. It says:
“We will support innovation in the motoring insurance market so premiums become more responsive to safer driver behaviour and vehicle choice. This could include extending the ‘reward based’ insurance approach pioneered through young driver telematics products to the wider motoring community and fleets.”
Department for Transport
Other parliamentary business
MPs want to hear your views on car insurance costs
We’re emailing you because you signed a petition about the cost of car insurance for young people.
A similar petition, about capping the cost of car insurance for young people, will be debated by MPs.
Before setting a date for the debate, the Petitions Committee would like the House of Commons to have the chance to find out more information about the issues raised in the petition. MPs will be able to use this information in the debate on the petition.
You can help by telling the House of Commons Petitions Committee a little about yourself and how the cost of car insurance affects you by answering a few questions here: www.smartsurvey.co.uk/s/young-people-and-car-insurance/
It shouldn’t take you more than a few minutes. We won’t ask you for any personal details and all your answers will be anonymous. The deadline for this survey is midnight on 16 January.
We’ll also be gathering information in other ways, including on Money Saving Expert forums and Twitter. You can take part there as well, so we’ll send you more details when we have them.
Which petition is being debated?
Put a max of £1200 on car insurance for 18-25 year olds
Insurance companies are making it harder and harder for people aged 18-25 years of age to start driving. I myself am looking at a £2500 insurance for my first year driving which is completely unaffordable as i am earning minimum wage £5.30 per hour and am also having to pay bill for my property. https://petition.parliament.uk/petitions/166847
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