bing
Skip to content
Go back

Article Tags:

Please choose from the following:

Young drivers 'enjoying lower car insurance costs'

Car insurance premiums have fallen among young drivers, new research shows, as they increasingly take advantage of black box technology.

Motor insurance claims
Motor insurance policies continue to offer an important source of protection to UK drivers.

For instance, recent data from the Association of British Insurers has indicated that they pay out £27 million each day to help repair vehicles and deal with injuries.

On the back of civil justice reforms introduced in the spring of 2013, the trade body added that insurers have subsequently passed on premium savings to drivers worth around £1.1 billion.

Boost for young drivers
Now, data from Consumer Intelligence has suggested that young drivers in particular are benefiting from car insurance policies.

The market research firm said typical premiums for drivers under the age of 25 dropped by 5.5% over the 12 months to August.

And it appears that these motorists are taking advantage of so-called telematics or black box technology, which can record the behaviour of drivers on the road.

Speed, times and distances are among the things these devices can record. In essence, the better people drive, the cheaper their car insurance could be.

'Reversing past increases'
Over the longer term, Consumer Intelligence said that the cheapest car insurance premiums fell by 20.6% for young drivers between October 2013 and August 2015.

Ian Hughes, chief executive of the firm, said black box technologies are helping to reverse past increases in car insurance for young drivers. He added: “Older drivers are to an extent helping to fund the premium reductions for younger motorists and need to ensure they are receiving the best value for money from their insurer.

Copyright: Press Association

'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

Click for more information about the Wesleyan group of companies.

© 2018 Wesleyan Assurance Society