Cheaper Car Insurance for New Drivers is in the Hands of the Consumer
The price of insurance for young drivers in the UK is exorbitant, and this is actually the same all across the world. This is because statistics show that young drivers are the most dangerous or risky drivers to insure.
New drivers themselves are also making the price of insurance rise every year. According to research, one in every five new drivers on the road will have an accident in the first year of their driving; and 40 percent of first car buyers don’t perform checks on their vehicle whatsoever, meaning that they may very well be driving a very unroadworthy car – a car that could be accident prone.
In addition to all of this, and because of the high prices of car insurance for new drivers, many drivers don’t insure their car – although this is against the law. Overall, this is costing the UK insurance industry about £500 million a year in claims, where insurance companies must pay for injuries or damages to uninsured parties etc. This rising cost is causing insurance companies to hike up their prices about £25 to £30 a year, making cheap car insurance for young drivers and car insurance for new drivers (young or old) a real impossibility.
However, this is not the only reason for the rising costs. The other is, more realistically, in the hands of the average consumer. Insurance companies know that the average consumer will be largely apathetic and simply grin and bear the high costs of insurance. Insurance companies also know that most consumers aren’t going to spend a great deal of time deciding on insurance – most will look at only a handful of companies that they know, and miss out on the many other insurance companies on the market that are less well known.
Also, most insurance companies know that if they hike up the price of insurance to their existing clients, most of these existing clients will just pay the new price without question – when, in reality, they should be paying LESS insurance because the value of their car has dropped and because they are now also a year older.
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