Page last updated at 15:54 GMT, Friday, 22 January 2010

Young drivers suffer rising insurance costs

Car wing mirror
Younger drivers are more likely to be involved in accidents

Young drivers have seen insurance costs increase by 14% in the last three months, new figures from motoring organisation AA are expected to reveal.

The data, which will be published on 27 January, is expected to show that the cost of car insurance for 17 to 22-year-olds is accelerating.

Costs have also risen for parents aged from 40 to 49 because they put children as named drivers on their policies.

Scotland is expected to show the lowest increase in car insurance costs.

Overall in the UK, the average cost of car insurance is expected to have risen by 11% in the last three months.

Increased claims

Young male drivers who have just passed their tests are bearing the brunt of the increases, according to underwriters. Quoted premiums have been marked up by at least a third compared with a year ago.

Few providers are offering male, first-time drivers a quote of under £3,500 a year. Third party fire and theft cover is not much cheaper than comprehensive, because the main problem is injuries caused by accidents.

More insurers are refusing to insure young people, or charge rates that price them out of the market.

The rising costs are explained in part because claims are getting bigger. Experts say there is a particular problem with young drivers crashing with their friends in the car with them - accidents that lead to large liability payouts.

Print Sponsor

Fraud 'costs the UK 30bn a year'
22 Jan 10 |  Business
Drink-drivers risked bad weather
21 Jan 10 |  England
Scotland 'worst for speed crimes'
22 Jan 10 |  Glasgow, Lanarkshire and West
'Unfair burden' of insurance law
12 Dec 09 |  Business
Flooding and your insurance claim
23 Nov 09 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific