Car insurance premiums have been increasing recently and according to leading motor insurance broker motor insurance underwriters have suffered significant losses.  Theses losses incurred from offering premiums that are too low and with no steps being taken to address imbalanced pricing in the market young drivers are the ones suffering. say that insurers should now take time to consider experience over the years which suggests that young drivers are a significantly lower risk than they were 10 years ago, and that their premiums should reflect this.

Jonathan Hehir, MD of, deals with young drivers every day explains, “It seems to be generally accepted now that young drivers should have to pay vast sums more than other drivers for insurance policies. While premiums paid by younger drivers should be dearer to some degree, to reflect the fact that they are more likely to make claims, I think what we are seeing now is grossly unfair. I believe that insurers have just been trying to stay above water of late but that now is the time for them to consider their pricing strategy and realise that they can lower premiums for young driver whilst still having a profitable business”

Calling for premiums increases to be shared across the board, Jonathan continued, “Traditionally young drivers have always been classed as higher risk driver and have always paid higher premiums. There is logic in this – no doubt. But the situation now has surpassed all rational thinking with young drivers, who have no previous claims or penalty points being quoted anywhere between €3,000 to €5,000 for policies on the smallest cars available”.

Jonathan went on to say, “The Gender Directive should have increased prices for females and reduced them for males, but it simply brought female prices level with male prices – there is was no meeting in the middle”. contend that a number of factors have come together that make today’s younger far safer than those 10 or 20 years ago:

  • They must complete the driver’s theory test before they can even apply for a learner permit.
  • First time young drivers must complete a minimum of 12 specific driving skill lessons.
  • Unlike the older generations, the majority of young drivers simply do not drink drive.
  • It is a taboo amongst that generation. Similarly, driving without full licence holders has become another taboo.
  • The education though schools has been very effective and as a result, young people are more safety conscious.
  • The penalty point system affects young drivers more (due to the increase in insurance for those with points) – they are aware of this so they speed less.
  • A lot of young people on the roads now are highly educated students or professionals and they have to be able to afford the premiums.
  • The young driver of today is not the same as the young driver in the early 2000’s since all of these measures were introduced and it’s high time the insurers gave them a break.

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