Calls for insurance companies not to discriminate against young drivers

Tue, 11 Oct 2005

Saga insurance company has called for young drivers to be charged premiums at a higher rate due to the fact that they commit more uninsured driving offences. The British Insurance Brokers Association (BIBA) rejected this argument, saying that uninsured drivers put £30 on premiums per year and this is not the right way to tackle the problem. BIBA are currently working with the Government to find solutions for this growing problem.

Graeme Trudgill, BIBA Technical Services Manager said, "Uninsured driving is a scourge on society and must be stopped. The new database and enforcement measures, including seizure of vehicles that are now in place should go a long way to helping us achieve this. While we entirely agree that is unfair for honest motorists to be penalised with higher car insurance premiums, we do not believe that any single group in society can be singled out to take a high share of this burden than others."

The real issue according to BIBA is that drivers over the age of 65 find it hard to get competitive car insurance and people who are over 80 are often refused car insurance by major companies. The reason is simply down to statistics. Older drivers are shown to have more frequent and serious claims.

Mr Trudgill added, "As people live longer now, the number of drivers aged over 65 will increase but many insurers are reluctant to cover them, especially direct insurers who 'cherry pick' the preferred age groups. However, going to a broker can save older motorists both time and money in that they can provide clients with advice on how to reduce their premiums and also identify those insurers who are happy to cover older motorists."

BIBA suggests older drivers should shop around to find the best deal for them. As older drivers do less mileage they may be able to get a discount. It is also worth checking to see if the policy is charging for using the car to travel to work. By removing this option an older driver could get a cheaper quote. Finally please be sure to mention to a broker any medication that may affect driving.

For help finding a local BIBA broker please visit www.biba.org.uk or contact BIBAs consumer helpline on 0870 950 1790.
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