Fifth of young motorists have no car insurance - September 2009

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. 

Fifth of young motorists have no car insurance
An estimated 250,000 people aged between 17 and 20 continue to drive despite not having any car insurance cover in place, according to the Motor Insurers' Bureau (MIB).

The group, which pays compensation to people involved in accidents with uninsured drivers, said people in this age group were four times more likely to be involved in claims, highlighting the significant proportion of young people without insurance cover who were causing accidents. It said part of the problem was that one in 10 young drivers claimed not to be aware that having motor insurance was a legal requirement.

But the biggest issue is thought to be the high cost of young driver car insurance, which puts off many people from taking it out. Accidents involving all uninsured drivers cost motorists with cover around £500 million a year, adding around £30 to every car insurance policy taken out. Uninsured drivers are five times more likely to be involved in a collision, fail to comply with other road traffic requirements or be involved in criminal activity than other motorists.

The MIB said uninsured and hit-and-run drivers injure three people every hour and kill three people every week. The UK has one of the highest proportions of uninsured drivers in Europe, with around 5 per cent of motorists not having cover, compared with just 0.1 per cent in Sweden and 0.2 per cent in Germany. But the police are being more successful at tackling the problem, with around 230,000 people convicted for driving without insurance each year.

Ashton West, chief executive of the MIB, said: ''Young people make up a significant number of uninsured drivers and with one in five newly qualified drivers having an accident in the first year of driving, they need to make choices based on the consequences of driving without insurance and not just on price alone.

''While we recognise the financial pressures for drivers taking to the roads for the first time, it is also a criminal offence to drive without proper insurance cover.'' People who are caught driving without insurance could have their vehicle seized, be fined and receive a minimum of six penalty points on their licence. The highest concentrations of uninsured drivers are thought to be in the West Midlands, West Yorkshire, Greater Manchester, London Metropolitan and Merseyside.

Nick Starling, director of general insurance and health at the Association of British Insurers, said: "Uninsured drivers are a menace on our roads. "Not only are they putting lives at risk, but they push up the cost of insurance for law-abiding motorists. The recession is no excuse for breaking the law. "Young drivers in particular can take steps to manage their insurance costs and stay legal by, for example, taking Pass Plus lessons and driving a lower risk car."

ENDS

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