Car insurance for young drivers news
30/07/2009
Paying more for your policy
Many buyers of young drivers insurance already pay a high price to get motor cover on their cars; however, they are likely to have to pay more in the future according to new research by an independent financial company.
The report, from Defaqto, says that 2008's average car insurance premium increase of 8.7 per cent was not enough to provide insurers with a profit.
As a consequence, underwriters are now going to have to increase the price of their policies by around 20 per cent if they wish to be profitable.
Mike Powell, principal consultant for general insurance at Defaqto, commented, "Motor insurers are going to need to think carefully about choosing to write for profit or market share. They are not going to be able to do both."
A spokesperson for Hoot, said, "As a dedicated online insurance provider we keep our overheads to a bare minimum and this enables us to offer the cheapest deals on young driver's insurance."
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