MPs discuss £1200 insurance limit for young drivers

Published 21 March 2017

Parliament has debated an insurance cap for young drivers, following an online petition that was signed by 185,000 people.

The online petition suggests a £1200 limit on car insurance for 18-25 year olds; Parliament has previously been told that average premiums for young drivers can exceed £2000 a year.

The petition was started by 19-year old Rhys Parker after he was quoted £2500 for his first year of insurance - e-petitions that gain more than 100,000 signatures have to be considered for debate in Parliament. 

Insurance prices are widely expected to increase in 2017, following the Government’s decision to raise the standard rate of Insurance Premium Tax (IPT) from 9.5 to 12 per cent. This follows two previous rises in two years, which has more than doubled the IPT from its previous five per cent rate.

In a preliminary response, the Government has said premiums could fall following reforms aimed at tackling the continuing high number and costly whiplash injury claims.

It has also said there is evidence that suggests new drivers could see their annual premiums fall by 20 per cent or more if they show good driving behaviour with a black box installed in their cars.


fazer thou    on 27 March 2017

Nothing new!
I worked in the Insurance industry for 10 years, back in the early 80's unbeknown to the public the government were in consultation with the industry regarding new drivers. In those days and probably now over 25's were subsidising under 25's by a very large amount, Young drivers statistically cause or are involved in accidents than any other age group, If you want to drive and you have no experience and want to drive new cars as most of them do they have to pay for it.

A lot of youngsters today its a case of I want it, and I want it now, If they had to work hard and save up for months or even years they would appreciate the true worth of a car and look after it and not drive around like idiots. Of which all of us have to pay for their mistakes.

I think the Black box is the way to go and make it compulsory for the 1st 3 to five years. Unfortunately I and I am sure many others will agree in the last 30 years the overall standard of driving buy all age groups and sexes has declined, but that's another matter altogether.

NLJT    on 29 March 2017

Fazer thou. Why on earth would you assume that most young drivers want new cars with an I want it now attitude! Lots of youngsters work and save very hard for their first cars and are very proud and care for them just as the older drivers had to do. To suggest that they drive around like idiots is such a stupid generalisation. Of course there are some that do, just as there are many older drivers that do.
Regarding the black box, most insurance companies will only supply cover when one is fitted. The problem for young people with a box fitted is being constantly tailgated and overtaken by gesticulating older drivers in 20/30mph zones who have little regard for speed limits. This is fact!
There is no benefit in pricing young people out of the market with extortionate premiums. Their money would be spent on keeping their cars serviced and safe.
And before you brand me as one of those young idiots, I am 70 years old, an Advanced Motorist and have driven over a million accident free miles since I saved up and bought my first car when I was 16.

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