Young British drivers could see auto insurance costs drop by 20% if proposals implemented, insurers association says

The Association of British Insurers said Tuesday that if the government implemented the group’s proposals, young drivers in the country could pay up to 20% less for auto insurance.

If the government followed the ABI’s Safe Young Driver proposals, nearly three million young people who have driver’s licenses could benefit by paying between 15% and 20% less for their auto insurance, potential savings of up to £370 a year for those between ages 17 and 24, the group says.

Currently, drivers in that age range pay an average annual premium of £1,853, the group says.

The association’s proposals include:

• One year minimum learning period for young drivers. • Limiting the number of young passengers and restrictions on nighttime driving for young drivers for an initial period after passing their driving test. • Zero blood alcohol driving limit for an initial period after a young person passes their driving test.

The government is currently considering the proposal.

Costs for young female drivers in particular in the United Kingdom has been a hot button issue since the European Court of Justice (ECJ) ruling on the gender-based pricing, with one study suggesting premiums for that group have gone up by 22% on average.