Wednesday, 10 July 2013

Safer New Cars Ramp Up Young Driver Insurance Premiums

According to recent research young drivers are feeling pressurised to buy older, cheaper cars as they are unable to afford the cost of insurance for a newer, safer vehicle.

The report released by car manufacturer, Alfa Romeo, shows that 50% of respondents feel that they are being forced into cheaper, unreliable, older cars. It is believed that this is the main contributing factor to young drivers under the age of 24 being involved in more car accidents than any other age group.

Of those surveyed as many as 63% believe that it is wrong for young drivers to be charged higher car insurance premiums because of their age. Almost 75% believe that they are at a higher risk of having an accident as a result of the cost of young drivers car insurance forcing them into older, less reliable vehicles.

Commenting on the outcome of the study, Damien Dally, the head of Brand at Alfa Romeo stated:

"Young drivers are having to pay increasing amounts of money just to get behind the wheel of a car and often a new car is totally out of the question, despite the obvious benefits of safety, efficiency and modern technology."

Many young drivers are reliant on their parents helping them to buy a first car and insurance, however, with a standard policy costing in excess of £2,000 the costs are proving to be quite a burden for many.

As a result telematics or "black box" car insurance is proving very popular with young drivers looking to cut costs.

The black box device is simply fitted in a discrete location in the car and tracks a number of aspects about the drive. In the case of iKube this is largely focused on the time of day. However it also looks at how well or poorly the motorist has driven over the course of the year and the premium is adjusted accordingly.

If the young driver has driven well they receive a discount on their policy, however, if they have driven poorly this could result in an increase.

To find out more about how iKube's black box insurance works check out our telematics car insurance page.