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 Cut the Cost of Young Driver Insurance

Every parent of a teenager who has passed his or her driving test and is lucky enough to be able to afford his own motor vehicle will be painfully aware of the immense cost of insuring that vehicle, even to the minimum liability requirement prescribed by the law. It is not merely anecdotal that many young drivers find that the insurance quotations that they receive for one year of cover, either through a broker, on the telephone or via one of the numerous online insurance price comparison websites, is more expensive than the vehicle that they wish to insure!
There are obvious cost implications for the parent in this situation but before we consider how the premiums might be minimised, we will look briefly at the reason for this overloading of motor insurance premiums for young drivers. Essentially, insurance companies are businesses. The bottom line of every business is to make a profit, so that it can pay can pay a dividend to its shareholders and/or invest that profit in some other money making venture.
Accordingly, insurers are extremely cautious about setting their premiums at a level that might jeopardise their profit by virtue of increasing the amounts that they are required to pay out in respect of a claim. In order to calculate the amount of the premiums that they quote, therefore, insurance companies take into account the statistical likelihood of a particular driving group to be involved in an accident and, if they are involved in the accident, the likely extent of the damage and, in turn the likely size of the payout that they will have to make.
The statistical evidence is quite damning. Firstly, one out of every five drivers is involved in some form of motor accident during the first year of driving. Inevitably, the vast majority of these drivers will be a young driver. Secondly, there is a ten times greater likelihood that a male driver under the age of twenty-one will be involved in a motor accident that a male who is over the age of thirty-five. Thirdly, the preponderance of motor collisions involving young drivers occur after nightfall. There are only one in eight drivers in Britain who are under the age of twenty-five, yet one in four of the drivers who are fatally injured in a car accident come from this age group. Finally, approximately 40% of motor car passengers who will suffer fatal or critical life threatening or life altering injuries will have been in a car that was driven by a young driver.

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