7 March 2024

ABI proposed new rules for young drivers to cut premiums by 20%

ABI proposed radical changes to learner and newly qualified drivers to reduce accidents. Would they work or are they simply removing 17 year olds from the roads?

Way back in 2013 the Association of British Insurers put forward proposals to the government to improve young driver safety. The ABI claimed at that time that by implementing its proposals it would result in young drivers insurance premiums being cut by up to 20%.

They put forward the following suggestions:

• One year minimum learning period for young drivers
• Limiting the number of young passengers that could be carried for a period after passing the test
• Restrict night time driving for a period after passing the test
• Introducing a zero alcohol limit for a period after passing the test

None of these of course progressed, but one does wonder if they would have helped new drivers over the past two years when their car insurance premiums went through the roof.

Of course, it would have meant, if you have a minimum one year learning period there would be no 17-18 year olds with a full licence unless the minimum age for learning was reduced. As many young drivers have found out, passing the driving test comes with a massive hike in insurance premiums reflecting the increased risk of driving unsupervised.

Northern Ireland already runs a graduated licence scheme for new drivers where newly qualified drivers have to display an R-plate and be restricted to 45mph. They are currently legislating for changes broadly in line with the ABI's proposals. This will reduce the minimum age for learners to 16½ but enforce a minimum of one year as a provisional driver. Newly qualified drivers will have to display an N-plate for two years and will not be allowed to carry young passengers except immediate family for six months after passing the test.

One thing new drivers hould do to reduce premiums is, if they can, to add a parent as a named driver. Insurance companies like it if you do. A middle aged driver with a clean driving licence and claim free history is a good risk thus reducing the overall risk profile. There may also be a relationship between safer parents producing safer children.

So given the current impasse in changing the rules for younger drivers, notwithstanding a continuing, depressing number of heading involving accidents involving new drivers, really the only options open to to those who have recently passed their test is to use sites such as the MoneyMaxim car insurance comparison site, which has a good number of new driver focused insurers on it, to try and find the most competitive prices in the market..