AA: High premiums punish responsible young drivers

Motor insurers should use more sophisticated methods to calculate premiums so conscientious young drivers no longer have to subsidise the 20% of young motorists who crash within a year of passing their test.

Simon Douglas, director of AA Insurance, said companies should reward young motorists who drive carefully.

“I believe the industry must work together to find a formula that recognises those who are able to demonstrate they take a responsible approach to driving,” Douglas said yesterday, speaking at a conference hosted by the Association of British Insurers.

Douglas acknowledged that young drivers face higher premiums because they’re more likely to cause an accident.

Recent research by AA Insurance found that inexperienced drivers are up to ten times more likely to be involved in a serious collision than their experienced counterparts.

“But that doesn’t mean all young drivers are reckless or careless when behind the wheel,” Douglas said.

“Good, safe drivers should be rewarded and the insurance industry is well placed to provide incentives that encourage responsible driving,” he concluded.

Source: Insurance Daily