Young drivers pay more to insure their cars
The new Equalities Bill, being introduced by the Government to tackle age-based prejudice, could have far reaching consequences for the car insurance industry, according to uSwitch.com. Currently, although young drivers (aged 17-25) make up only 7% of the car insurance market, they are paying 22% of all premiums across the industry. This is because of the higher risk associated with their age, but it means they pay £940m more than other motorists.
Because age plays such a large factor in the cost of car insurance, there are some very expensive mistakes to be made by young drivers if they fail to do their research before buying a car.
Opting for a ‘go faster’ GTI could see them forced to fork out an additional £1,333 per letter – pushing the cost of their insurance up by £4,000. What’s more, some young drivers in high-risk areas could be paying up to £14,600 to get comprehensive cover for a sporty second hand car, such as a Golf GTI, which
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