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Thursday, October 13, 2011

UK High insurance pricing young drivers off the road

http://www.co-operative.coop/magazine/in-the-news/family-finance/high-insurance-pricing-young-drivers-off-the-road/?articleid=003796#Comment

Youngsters say they are being forced off the roads because of unaffordable insurance premiums.
A poll of 1,127 young drivers, conducted by Young Marmalade insurance company and the House of Commons Transport Committee, found that 96 per cent of people felt they were being priced off the roads.

In order to escape paying high premiums, many people go online to find money-saving tips for teens, while 21 per cent of young drivers said they had considered getting behind the wheel without insurance.
A report by the Press Association said 30 per cent had thought about providing false information about their circumstances in order to get a lower quote.
Data from the AA's Insurance Premium Index showed that in July the annual Shoparound premium – its index of the cheapest quotes – for a male aged 17 to 22 years old stood at £2,872. The premium for a female of the same age was £1,671.
Louise Ellman, chairman of the Commons' Transport Committee, said she was "extremely concerned" by the results of the poll and the cost of young driver insurance.
She said: "It is shocking that so many young drivers are considering breaking the law - by driving without insurance or changing the details they provide to insurers - in order to get a cheaper premium.
"It's revealing that most young drivers are also unaware that many insurers receive referral fees in order to deal with claims they make. This highlights why the committee called for referral fees to be made more transparent in its report on the cost of motor insurance earlier this year."

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