Motor news - Young driver car insurance rising despite falling accident figures

Car insurance news - Young drivers still face rising insurance costs

A report has revealed that although the price of young driver car insurance has continued to rise, new figures indicate that the number of fatal car accidents involving young motorists fell by 23% in 2010 compared to statistics from 2009.

Young drivers often face high car insurance premiums as conventional insurance providers consider them to be a group of high risk drivers. However, information from the Department for Transport has shown that the number of young driver accidents is actually falling.

The average cost of car insurance for young drivers has reportedly hit an all time high of £3,688 for annual cover, and young drivers choosing to spread the cost by paying in monthly instalments have to pay as much as £546 every month.

It is estimated that 448,000 young drivers pass their driving test and obtain their full licence every year, and there are fears that the rising cost of car insurance is pricing many young drivers off the road. The Motor Insurers' Bureau has estimated that 20% of drivers between the age of 17 and 22 are taking to the roads without any insurance.

Industry experts and academics recently attended a meeting in Westminster where they discussed the types of public policy changes which could be introduced to reduce the risk of young driver car crashes.

At the event, road safety minister Mike Penning dismissed proposals from the Association of British insurers which aimed to reduce the price of young driver car insurance by introducing stricter rules, stating, "I don't even think that this would be legal."