Car insurance: a cost stabilising policy?
Another worry is the potential for an increase in the number of uninsured drivers, which will throw even more costs onto the insurance companies and thus onto those who pay for cover. There is no obvious easy solution to this problem, although suggestions have been put forward by many individuals. Some of these may merit investigation, such as the proposal that there should be an equivalent of the 'tax disc', to be displayed on the vehicle as proof that insurance has been obtained.
In a survey carried out by Direct Line Insurance it has been found that 40% of those up to the age of 25 who could be driving do not even hold a licence. Amongst those who have passed the test and are holding a full licence, as many as 25% do not own their own vehicle and may rely on the use of parents cars.
It does not follow that these are youngsters who would rather spend their money on their own enjoyment and let someone else finance their transport. Rather, it is the effect of low paid jobs or the cost of further education which is holding them back.
There is some hope that 'black boxes' which are being trialled by insurers to tie in insurance costs with actual car usage, will assist young drivers to reduce their costs, especially where the boxes are used as a limiting factor on the hours of use.
In the meantime all drivers, of whatever age, would be advised to shop around for the lowest premiums as there are and presumably always will be large differences between the lowest and the highest cost. Browsing the internet for a broker would be a good start and could be done in a spare few minutes.
Remember that times change and the insurer who was the cheapest 5 years ago may not be quite so competitive now. It is worth checking.