Young drivers could be priced out of car insurance, expert warns

Thu, 12 Feb 2009

The increasing cost of car insurance could see younger drivers priced out of the market, one expert has warned.

According to David Neave, director of general insurance at The Co-operative Insurance, premiums for the age group are experiencing price inflation at a greater rate than the average driver.

This means that some young people could find they are unable to afford car insurance at all, he claimed.

However, Mr Neave believes that as long as young people are properly educated and drive in a responsible manner, there is no need for this to happen.

"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," Mr Neave said.

The company now offers pay-as-you-go car insurance, something which should help young drivers cut the cost of their cover, he added.

Earlier this week, Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association, stated that the cost of car insurance is set to keep rising as firms actually make an underwriting loss most years.
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