Report: Cost to insure a new UK driver? Nearly $10,000/year

Filed under: Etc., Safety, Earnings/Financials, UK

According to The Daily Telegraph, young drivers in Britain can pay as much as £546 per month for auto insurance. That's around $890/month at current conversion rates. The report indicates that UK drivers between the ages of 17 and 22 years old pay an average of £5,957 - around $9,640.

And you thought it was expensive to get car insurance for your child.

Why the steep price tag for UK drivers with Learner's tags? It's no shock to learn that young drivers carry a higher risk of being involved in an accident than their elder counterparts, and as such, insurance companies assign higher premiums to the group. Unfortunately, as a result of these tough insurance prices, it's estimated that as much as 20 percent of UK drivers between the ages of 17 and 22 are driving without any coverage at all.

Additionally, around 41 percent of UK parents are currently insuring their child's vehicle in their name to cut costs. Unfortunately, doing so is illegal, and insurance companies can refuse to cover a claim if they find that parents have been fronting insurance for their young drivers.

So what's the solution? The Daily Telegraph reports that some insurance companies are turning to a black box that measures g-forces from sudden acceleration, braking and cornering, as well as the time of day that the vehicle is being driven and its speed to custom-tailor insurance premiums. Similar measures are being undertaken here in the States as well.

Cost to insure a new UK driver? Nearly $10,000/year originally appeared on Autoblog on Wed, 25 May 2011 16:31:00 EST. Please see our terms for use of feeds.

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Source: http://www.autoblog.com/2011/05/25/cost-to-insure-a-new-uk-driver-nearly-10-000-year/

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