BIBA stands firm on reduction in novice driver premiums

by Gill Montia

Story link: BIBA stands firm on reduction in novice driver premiums

BIBA, the trade association of general insurance brokers, has responded to suggestions from the Transport Select Committee that the insurance industry should reduce premiums for novice drivers.

The association has warned that such a move could increase premiums for claim-free drivers and that it believes it is only fair that the higher cost of claims caused by young drivers is reflected in their premiums.

According to BIBA, government bodies should focus on ensuring that young drivers have a greater awareness of the requirement for insurance.

It wants the consequences of uninsured driving and the role of the MIB included in the Highway code, which currently has only one short paragraph on the subject, emphasising that motorists must have a valid insurance certificate.

In addition, BIBA believes that insurance based questions should provide a stronger element in the driving theory test and that sentencing guidelines for Magistrates should be revised to require a minimum fine for uninsured driving.

At the same time, new research by the RAC suggests that a third of young drivers do not think that the standard driving test prepares them for today’s driving.

The RAC is now calling for an immediate reform of the driving test, which could include elements that young drivers themselves would like, such as training for nighttime driving and lessons on the motorway.