I run a small company and to put an under 25 year old driver on the company fleet policy is going to cost me in excess of £600 per year extra.
2007-02-26 18:38:12 · 7 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
This is because age discrimination is only at present enshrined in employment law. It will be a while before service provision, ie the sale of goods and services is affected.
2007-02-26 18:46:34 · answer #1 · answered by fengirl2 7 · 0⤊ 1⤋
I know i agree. I used to work selling car insurance for 3 years. Because it's all risk related. (The young racer stigma will always be attached). But as someone who entered peoples claims on a daily basis, the majority of people claiming would be in their 40-50's. However it's based on experience, eg, an under 25 year old will generally be higher. Then it falls into how long they've held their licence. Under 2 yrs is concidered an unexperienced driver. Even in the eyes of the law, if you've held your licence under 2 yrs and you clock up 6 points you get you licence taken away. However if you've had it over 2 yrs you get to have 12 (though any points will effect insurance, unless you're around the 40-50 mark and one will usually not make a difference). If the driver has held the licence under a year it's the highest, then once you get to a year it'll come down slightly and so on until to you get to 3 yrs. Excesses work exactly the same, risk related, if they think there's a high chance of a claim then it'll be higher, remember they're just out for your money. However what you NEED to look out for what catches a lot of people out is the compulsary xs and the volentary. It is exactly that! Quite a lot of insurers will wack on a high one to get the price down, some in breach of the policys in place wont even tell you your xs untill they're reading out the sales and fsa scripts. You need you ask, because in a lot of cases there will only be a (eg) £200 compulsary xs for that driver (what you HAVE to pay but they've put on the extra £400 volentary just to get the price down! Under 21 will have the highest but between 21 to 25 there are some around with as little as £150 compusary. You don't have to have the volentary!
2007-02-26 19:01:27 · answer #2 · answered by L*D 2 · 0⤊ 0⤋
The statistics have shown that a young male driver, under the age of 25, is more likely to be ticketed, or cause an accident, because of immaturity and emotional development. Girls tend to be less reckless at that age, however, their costs go up as well, just not as much. I have twins, boy/girl. When I added them to my insurance policy, my rates quadrupled! And, it didn't go away once they turned 18, as I thought, because they still lived in the home and had access to my cars, even though they had their own. My husband had a DUI or two, so he wasn't helping the situation either. I actually ended up putting exclusions on all vehicles registered in my name, excluding any of them being covered if they took the car. So, anyway, on that note, good luck.
2007-02-27 06:57:39 · answer #3 · answered by fisherwoman 6 · 0⤊ 0⤋
Insurance is to do with "risk". Young drivers are a greater risk than older ones. However, this age question also works in reverse, young people taking out life insurance would pay a lot smaller premium than an old person. It's all down to "risk".
2007-02-26 19:15:40 · answer #4 · answered by PATRICK C 3 · 0⤊ 0⤋
Age, gender, and marital status (between different issues) are valid alerts of in all probability existence span contained with regards to existence coverage or liklyhood of twist of destiny for automobile coverage or threat of wellbeing situations for medical coverage. because of the character of the transaction it is not discrimination as long as all interior a similar type are taken care of the two. it may well be discrimination if the coverage charged distinctive fees or presented distinctive advantages or refused to conceal some interior a similar type and not others.
2016-10-16 21:05:52 · answer #5 · answered by ? 4 · 0⤊ 0⤋
because its based on statistics. younger people are more likely to have an accident according to quite alot of stats, so they increase the premium because theyre more likely to have an accident. (i am 24 though and do agree not all young drivers are idiots like some suggest). If they had no stats to go by, we'd get it cheaper because they wouldnt have a reasoning behind the difference in price
2007-02-26 22:20:08 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Because they pay the politicians so much. The world is run by big business, and they will do anything the can to make more cash.
The will also get politicans to make laws that favor their business practices.
2007-02-26 20:12:35 · answer #7 · answered by Anonymous · 0⤊ 2⤋