The IAM has called on insurance companies to overhaul the system used to calculate prices for young drivers, claiming that insurance premiums are pricing them off the road and jeopardising road safety.
IAM research on a popular price comparison website found that the cheapest annual premium for an average 17 year old driver was £7,091.38. The top price quoted was just over £9,700.
Neil Greig, IAM director of policy and research, said: “Young drivers can only learn safer driving by practising it, but huge insurance premiums risk pricing them off the road. The challenge for the government, the insurance industry and road safety experts is how to balance the need for experience with the very real risk that young drivers pose to themselves and other road users.
“When an insurance premium is matching university tuition fees, innovative thinking is needed to reward the safest young drivers or spread the cost in a more manageable way.
“Many young people will need a car to get to work and there are serious implications to the economy of young people who are unable to afford to drive, and to road safety if drivers simply choose to forgo insurance.”
For more information contact the IAM Press Office on 020 8996 9777.