Thursday, 21 February 2013

Learner Driver Numbers Dropping

With motoring costs doubling is there any wonder why young people do not want to drive?

A recent study by Auto Trader has suggested that the cost of keeping a car on the road could double in the next decade, forcing many young drivers off the road completely.

The poll of almost 3,500 drivers suggested that many believe that the cost of motoring could be as much as £4,580 in ten years time, doubling the current cost of motoring - an overall annual cost of £135 billion a year.

As a result 71% of respondents believe that it would be very difficult for young drivers to buy a car in the future. Consequently over 50% of the 17 - 24 year olds questioned believes that there will be a drop in the numbers of people learning to drive.

Research by ITV news backs up this argument with figures that show that the numbers of learner drivers taking lessons have dropped by a fifth in the last five years alone.

ITV news suggests that this is a result of high young driver insurance costs and problems with the UK economy.

However, by taking out a black box telematics insurance policy, such as iKube, young drivers can reduce their premium by as much as 25% in some cases. To find out more about how this work's check out iKube's guide to telematics car insurance.

Source: http://www.itv.com/news/meridian/story/2013-02-19/young-drivers/

Tuesday, 12 February 2013

Parents Fib to Slash Young Drivers Insurance


A comparison website has revealed that 10% of parents are happy to commit fraud to help save money on their kid's young drivers insurance.

Essentially the parent is engaging in a fraudulent scam, otherwise known as "fronting", to reduce car insurance premiums. This scam involves a parent or older driver to insure the car in their name, however, in reality the young driver is the main driver.

Committing car insurance fraud is illegal and really not worth the risk as it could invalidate the car insurance as well as lead to a criminal record. To find out more about the dangers of fronting we recommend reading our article on the importance of supplying your insurer with the correct information - which expands further on why you should avoid fronting.

According to the road safety charity, Brake, a fifth of new drivers are involved in a crash within 6 months of passing their driving test. Figures also show that an 18 year old young driver is three times more likely to have an accident than a 48 year old. Stark figures that highlight the importance of ensuring that newly qualified young drivers are insured correctly.

To bring down the cost of car insurance for young drivers’ iKube recommends looking at a telematics (black box) insurance scheme. In addition to this the parent could look at adding themselves as a "named" driver as this could help also help to reduce the premium.

By adding a named driver and opting for a black box insurance scheme the young driver may not only reduce the premium in the first year but can continue to benefit from the scheme.

In the case of iKube, for example, as long as the young driver avoids late night driving and drives carefully, then they can continue to benefit from the discounts that iKube offers at renewal.

Source: http://www.telegraph.co.uk/finance/personalfinance/insurance/motorinsurance/9862451/The-parents-who-lie-to-cut-their-childs-car-insurance-costs.html