In a bid to alleviate the financial burden of soaring car insurance premiums for young drivers, experts at Compare the Market have unveiled a practical solution. Recent research conducted by the company suggests that adding an experienced named driver to their policy could yield significant savings.
According to Compare the Market’s findings, drivers under the age of 25 could potentially save £281 on average by including an additional named driver. Their data indicates that the typical premium for a young driver stands at £1,859 with an added named motorist, compared to £2,140 without one—an increase of 15%. The caveat, however, is that all named drivers must actively use the vehicle for the insurance policy to remain valid.
For motorists aged between 25 and 34, the potential savings are even more substantial. Compare the Market reports that adding a more experienced driver to the policy could lead to an average saving of £295. Specifically, premiums for this age group average £751 with an additional named driver, contrasting sharply with £1,046 in the absence of one—a 39% reduction in insurance costs.
The surge in car insurance expenses, particularly impacting young drivers, has been attributed to rising repair costs and other inflationary pressures. Compare the Market highlights that the average premium for drivers under 25 without additional named drivers has surged from £1,783 to £2,140—a £357 increase over the past year.
Adding an experienced driver typically results in lower premiums because insurers factor in the combined risk profile of both drivers. However, it is crucial for policyholders to provide accurate information and avoid ‘fronting’, which constitutes insurance fraud. Fronting occurs when a less experienced driver lists a more experienced driver as the main driver, contrary to the actual usage patterns.
Julie Daniels, a motor insurance expert at Compare the Market, emphasized the legitimacy of adding an experienced named driver to reduce insurance costs for younger drivers. She cautioned against fronting, stressing the potential consequences including criminal prosecution, an unlimited fine, and penalty points on the driver’s record.
Daniels advised young drivers to explore options for reducing insurance expenses by comparing deals ahead of policy renewal. According to Compare the Market’s analysis, drivers could potentially save up to £549 on their car insurance premiums by leveraging their services.
In conclusion, as young motorists grapple with escalating insurance costs, the recommendation to add experienced drivers to policies emerges as a viable strategy to achieve substantial savings, provided it is done in compliance with insurance regulations.
