Do you think car insurance is expensive for young people?

dacouch

Strider590 wrote: »

Better off in a car than to be mowed down and killed walking along the street.

How often do people get mowed down and killed while walking down the street?

Fortunately it's a very rare occurance.

Being seriously injured whilst a passenger in a vehicle is many many times more likely and has an impact on premiums

Joe_Horner

dacouch wrote: »

The real costs to an Insurer are for passengers who receive life changing injuries requiring 24 hour care especially if they're young when they receive the injuries.

Young drivers are far more likely to have passengers in their car than a normal driver and those passengers tend to be young. You do the mathes

And yet, Admiral (I agree, only one company etc) have stated the average cost of young driver claims to be £3500. Which rather suggests that "far more likely" in this context is an entirely relative matter. In the same way that you're "far more likely" to be struck by lightning than by a meteorite, but the odds against you being struck by either are vanishingly small.

Similarly, the odds of a young driver leaving someone with life changing injuries may be higher than the odds of an older driver doing the same, but it's still very unlikely indeed in any given case.

The insurance industry is simply a (compulsory in this case) form of gambling where the insurers are the bookies. And the first rule of gambling is, in the long term the bookies always win.

dacouch

Joe_Horner wrote: »

And yet, Admiral (I agree, only one company etc) have stated the average cost of young driver claims to be £3500. Which rather suggests that "far more likely" in this context is an entirely relative matter. In the same way that you're "far more likely" to be struck by lightning than by a meteorite, but the odds against you being struck by either are vanishingly small.

Similarly, the odds of a young driver leaving someone with life changing injuries may be higher than the odds of an older driver doing the same, but it's still very unlikely indeed in any given case.

The insurance industry is simply a (compulsory in this case) form of gambling where the insurers are the bookies. And the first rule of gambling is, in the long term the bookies always win.

I was shown the Aviva claims rates for young drivers about 15 years ago. Their average payment for a young driver claim was just over £12k. They were paying out over £2.80 in claims payments for every £1 in premium they collected for young drivers.

If there was money to be made across the board for young drivers, Insurers would be falling over themselves to target the market.

As previously discussed, Admiral are at the forefront of harnessing data to target the most profitable parts of the market. Their results are invariably always better than the rest of the market.

F1F93

Strider590 wrote: »

Update: Doing a bit of digging the per-mile risks of drivers have been around a while, the Times reported that : "Department of Transport statistics show that drivers over the age of 80 have more accidents per mile than any other age group."

But drivers over the age of 80 are likely to be driving the fewest miles given that they likely do not have to commute etc.

If an 80 year old has twice as many accidents per mile than an 18 year old, the 18 year old doing 15000 miles a year will still have five times more accidents as the 80 year old doing 1500 miles a year.

Brightonsbest_2

Hi
It's a business and well nknown fact that younger drivers are a bigger risk hence bigger quotes.

GwylimT

I bought and insured our sons first car, we investigated insurance and picked the three cheapest cars to insure so our son could pick from those, they were a volvo estate, toyota corolla and a ford mondeo, the smallest engine was a 1.8l petrol, the largest a 2l petrol.

His car was around £600, his insurance was £1,600 with a black box fitted, a 1l fiesta at the time was around £3000 to insure!

UKParliament

Thank you for your comments! They will be summarised and used to inform the questions asked at the Committee's evidence session. This will take place on Tuesday 28 February at 2.20pm. The Committee will hear from the following witnesses:

• Elizabeth Box, Head of Research, RAC Foundation
• Nigel Dotchin, Chairman, Wheels 2 Work Association
• Crispin Moger, Chief Executive Officer, Marmalade
• Graeme Trudgill, Executive Director, British Insurance Brokers’ Association
• James Dalton, Director of General Insurance Policies, Association of British Insurers
• Simon Warsop, Global Chief Underwriting Officer (Personal Lines), Aviva

Find out more about the evidence session and how to watch on the Parliament website.

Following the evidence session, MPs will also debate the cost of car insurance for young people, in Westminster Hall, on Monday 20 March 2017. We will update this post with more information about how to watch the debate as soon as possible.

Joe_Horner

Thanks for the follow-up. Hopefully the fact that the evidence session appears to be dominated with insurance representatives won't be used as a means to find lots of reasons why things can't change!

Will watch with interest

takman

Joe_Horner wrote: »

Thanks for the follow-up. Hopefully the fact that the evidence session appears to be dominated with insurance representatives won't be used as a means to find lots of reasons why things can't change!

Will watch with interest

The typical response of someone who can't accept when people don't agree with them "they must work for the company". :rotfl:

Joe_Horner

takman wrote: »

The typical response of someone who can't accept when people don't agree with them "they must work for the company". :rotfl:

Not at all.

It may well be a genuine and effective inquiry but, when most of those giving evidence are from a group (insurers) who logically may have a vested interest in justifying current prices, a certain level of scepticism is healthy. Anything less would suggest a potential Trump supporter.