Research carried out by Co-operative Insurance suggests the average price of motor insurance for young drivers has risen by four times the rate of inflation during the last 12 months. Enough, the insurer claims, to raise the spectre of an “uninsurable generation”.
The Co-op claims that in 2008, young drivers suffered an 11.5 per cent increase in their insurance premiums, compared with 3.1 per cent inflation. The average cost of insurance for drivers under 25 now stands at £1,463.
Meanwhile the Motor Insurance Bureau claims at least two million, or 5 per cent, of the UK’s drivers are uninsured, costing the industry more than £500 million a year.
Co-op director David Neave spells it out: “With this continuing trend, which directly reflects the increased risk posed by young drivers, a whole generation could become uninsurable, adding to the already growing problem in the UK.”
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