Insurance news
25/01/2012
Young driver given car insurance quote out of price range
A young driver from Bolton with no driving convictions or points on his licence has been forced to rely on public transport due to the high car insurance quote he received to insure his vehicle. The 20-year-old, who has recently become a father, was quoted £12,000 to ensure his Peugeot 206.
The Institute of Advanced Motorists (IAM) has been trying to get the Government to work with insurers to cut the costs for young drivers if they take extra tests after passing their practical driving exam.
However, the young father completed the ‘pass plus' lessons in an effort to reduce the high cost of his premiums to no avail.
A member of the Bolton Advanced Motorists said, "Things will have to change. I think what they are going to have to do is have a second test, say 12 months after drivers pass their first test."
The IAM's comments came just before the publication of a report published by the Transport Select Committee on the cost of motor insurance, which revealed that the average car insurance premium for men aged 22 and under is £2,977 and for women is £1,682. The rates for women will be likely to increase in December when the new gender equality laws are brought in.
In the meantime the young driver from Bolton has been forced to sell his vehicle as he has been unable to keep up with high costs which accompany it.