New hope for £1200 insurance cap 22 | 03 | 2017

WESTMINSTER IS TO discuss whether young drivers should pay no more than £1200 for car insurance. However, there’s every possibility other motorists could be worse off.

Parliament has agreed to discuss the possibility of limiting premium prices, after a petition demanding a £1200 price cap for young drivers aged 18-25 received more than 180,000 signatures.

Recent research found young drivers are on average charged £2013 for a year’s insurance, with many ending up paying significantly more. In contrast, the Association of British Insurers estimates the average comprehensive policy costs £462 across all motorists.

However, while the price cap would benefit young drivers, the British Insurance Broker’s Association (BIBA) warns that the rest of the motoring public would be worse off.

Perhaps not surprisingly, the BIBA says the cost of young driver claims would simply then be passed on to other motorists through higher premiums.

“We have engaged insurers in this process,” a spokesperson for the Government said, “so they can have confidence that additional measures will make a real difference that can be rewarded with lower premiums.”

Related: Renault insurance from £99

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Jim McGill