Car insurance news
21/05/2009
Young drivers to see no benefits from new equality law
Young drivers insurance shows little sign of enjoying a marked reduction in premium levels despite the new UK Equality Bill coming into force.
The new law states that "an insurer can lawfully quote higher motor insurance premiums for young men". As a result, motorists driving cars can still be penalised on the grounds of age.
Moneysupermarket.com's Steve Sweeney, who heads up the aggregator's motor insurance division, believed the legal approach was the right one.
He pointed out newly qualified and young drivers were seen as high risk. He said, "Ultimately, I think people should be treated fairly based on their own individual risk profile."
He said, "There is no doubt that the curse of the 'boy racer' lives on - insurers view women as far more mature motorists at an earlier age."
Young drivers insurance can drop in price from as high as £3000-plus at the age of 17 to a much more reasonable £800 upon reaching 19 years old.
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