Why is it getting harder to find car insurance for young drivers?

Summary: There are many factors which are contributing to the rising costs of car insurance for young drivers and this article illustrates them in an easy way for you to understand.

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers. These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling. UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen. As a result of what insurance company's see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies. It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parent's age. Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for car insurance for young drivers, which is often paid not by the young person but by their parents. The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence. The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent's policy in this way when they are in fact, an occasional user of the vehicle. The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company. They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time. Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.