Over the past 12 months the average cost of motor insurance for young drivers has risen by four times the rate of inflation, according to research* by The Co-operative Insurance.
Industry figures** show that in 2008, young drivers suffered an 11.5 per cent increase in their insurance premiums, compared with an inflation rate of 3.1 per cent. The average cost of insurance for drivers under 25 now stands at £1,463.
The Motor Insurance Bureau, an organisation set up to compensate victims of uninsured drivers, estimates that at least two million, or 5 per cent, of the UK’s drivers are uninsured, which costs the industry more than £500 million a year.***
“With this continuing trend, which directly reflects the increased risk posed by young drivers, a whole generation could become uninsurable, adding to the already growing problem in the UK”, warned David Neave, Director of General Insurance at The Co-operative Insurance.
As part of it’s ongoing “2 Young 2 Die campaign”, in association with the national road safety charity Brake, The Co-operative Insurance is using ‘black box’ technology to help young drivers manage their exposure to risk and subsequently the cost of their insurance.
Mr. Neave added: “As long as young drivers are properly educated about the risks of the road and drive responsibly there is no reason why they should be priced out of the market. Knowledge is a powerful tool to cut the number of young driver deaths on the road, which currently run at a shocking 13 a week – the equivalent to an entire football team.”
Through the “2 Young 2 Die website”, www.2young2die.org.uk, young drivers can qualify for reduced insurance premiums by answering a series of questions on the dangers of speeding, drink driving, driving whilst tired, not wearing a seatbelt and vehicle insurance. Once they have passed the online test, users can apply for car insurance with The Co-operative Insurance, which utilises ‘black box’ technology to provide ‘pay as you go’ insurance..
The ‘black box’ system, provided by Coverbox, is installed in the young driver’s car (at no cost to the driver as The Co-operative Insurance will pay for the installation) and uses a GPS system to calculate where, when and how far the vehicle is used sub-divided into three times periods: off-peak, peak and super-peak. The premiums are then calculated on the individual’s actual risk, therefore, each young driver can manage the use of their vehicle and at the same time manage their premium responsibly, which can equate to comprehensive premium for as little as 1p a mile.
Mr. Neave concluded: “We are taking a big step towards tackling the problem of the uninsurable generation on our roads by providing real incentives to reduce the cost of motor insurance.”
-Ends-
Notes for editors:
* *The research examined the change in insurance premiums between January 2008 and December 2008 and is based on statistics provided by Consumer Intelligence.
* **Industry figures include those from AA, Admiral, Asda, Barclays, Budget, Castle Cover, Churchill, Cornhill Direct, Direct Line, Elephant, Esure, Hastings, HSBC, Intune, Kwik Fit, More Than, Nationwide, NU Direct, Post Office, Priviledge, Prudential, Quinn, RAC, RIAS, Saga, Sainsbury’s, Tesco, Yes, Zurich.
* ***The Motor Insurance Bureau was set up in 1946 to compensate victims of uninsured drivers. All motor insurers are compelled to contribute to the funding of the MIB.
The Co-operative Insurance www.co-operativeinsurance.co.uk :
The Co-operative Insurance (CIS) insures almost three quarters of a million motor vehicles and is committed to improving road safety for everyone. CIS forms part of Co-operative Financial Services (CFS) which is an Industrial and Provident Society, CFS brings together The Co-operative Insurance Society (CIS) and The Co-operative Bank under common leadership. It is owned by the Co-operative Group (CWS) Limited, which is, in turn, the largest consumer co-operative in the UK, democratically run for the benefit of its members.
In 2008 The Co-operative Financial Services was awarded the prestigious title of Company of the Year in the Business in the Community’s Awards for Excellence.
The awards identify and celebrate companies having a positive impact on the community, environment, marketplace and workplace. Peer-assessed and independently assured the Big Tick award is the most respected endorsement of responsible business practice. Now in their eleventh year, they are the UK’s leading Awards for responsible business practice.
Brake www.brake.org.uk :
Brake is an independent national road safety charity.. Brake exists to stop the eight deaths and 79 serious injuries that happen on UK roads every day and to care for families bereaved and seriously injured in road crashes. Brake produces educational road safety literature, runs community training programmes and runs events including Road Safety Week www.roadsafetyweek.org.uk
The Co-operative Financial Services 1st Floor, 1 Balloon Street Manchester M60 4EP
0161 236 1352
07854 523 924
e-mail: [email protected]
website: www.co-operativeinsurance.co.uk
