Young drivers shopping for their online car insurance may have a shock when they find that Norwich Union has increased the cost of their 'Quote me Happy' motor insurance.
Male drivers, who are sometimes branded as 'boy racers', could see their already expensive vehicle insurance premiums rise by 16% over the next year as the car insurance provider, Norwich Union, increases the cost of their cover.
Other young drivers who have tried to obtain cheap car insurance and so have chosen third-party, fire and theft policies will also see the price of their premiums rise.
The decision to raise the cost of premiums has been made because money paid out in claims for young drivers has exceeded the amount taken in premiums.
A spokesman for Norwich Union, David Ross, said, "None of the premium we take from drivers is profit. It all goes in claims. Premiums have stayed stable in recent years but the cost of claims has risen sharply."
Norwich Union realises that they may lose some of their market as younger drivers shop around for cheaper online car insurance quotes to cut the cost of their vehicle insurance.