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Daily Insurance Industry News
Thursday 18th of January 2018
August 28, 2009

Young motorists unaware that insurance is legally required

by David Masters

Story link: Young motorists unaware that insurance is legally required

One in ten young drivers aren’t aware that car insurance is a legal requirement, while one in five are taking to the roads without insurance.

A quarter of a million 17-20 year olds are getting behind the wheel without insurance cover, according to new figures from the Motor Insurance Bureau (MIB).

Drivers in this age group are four times more likely to be involved in uninsured accidents, said the MIB, which pays compensation to people whose cars are hit by uninsured drivers.

Ignorance of car insurance being a legal requirement, coupled with extortionately high premiums, are the key reasons behind young people driving without cover, the MIB said.

Accidents involving uninsured drivers cost £500 million a year and add £30 to every car insurance policy.

Uninsured drivers are five times more likely to be involved in criminal activity, to crash their vehicle, or to break road traffic laws.

The Environmental Transport Association (ETA) believes the law is currently too soft on uninsured drivers.

“The police have powers to seize and destroy uninsured cars, but with the value of many vehicles so low this is not proving enough of a deterrent,” an ETA spokesperson said.

Around 230,000 people are convicted of driving without insurance every year.

 

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