Young driver tax break 'will save lives and money'
The Road Safety Foundation is calling for the removal of insurance premium tax from telematics insurance policies for drivers under the age of 25 years.
The Road Safety Foundation says there is a “solid business case” for the tax break which it estimates will result in a £500m net saving to the economy from reduced crash costs, including benefits to the NHS and long-term care services.
John Dawson, Road Safety Foundation council member, said: “Telematics insurance is a 21st century solution for a problem which Governments admit they have wrestled with for 20 years.
“Not only can we make young driver insurance cheaper but it avoids restrictions such as bans on night time driving or carrying passengers.
“Parents often provide the car and pay high insurance premiums. Because crashes are less frequent, telematics insurance reduces insurance costs. It can give reassurance that the car is being well driven – and early warning before it is too late.”
“Telematics insurance is relatively new but already a quarter of under-25s are insured in this way. There are now more than a dozen products on the market and all major insurers provide some form of offering. We can now accelerate the take-up in a competitive market and save thousands of deaths or injuries annually.”
The Road Safety Foundation says that while the installation of telematics technology in the vehicle adds to the cost, a tax break would defray these costs and attract further uptake.
The proposal is one of seven recommendations in a new report which the Road Safety Foundation will launch in Parliament next month. The report on Britain’s future road safety strategy will be released on 3 November and will address safer driving, roads and vehicles and new financial instruments for road safety