Seized Car Insurance Report On Young Drivers Driving Without Insurance
Seized car insurance report that almost 20 per cent of young drivers between the ages of 17 and 19 are breaking the law by driving without insurance or committing insurance fraud in an attempt to obtain cheaper insurance.
Research has revealed that 16 per cent of 17 to 19 year old drivers have insurance in their parent’s name, a practise known as fronting as they find insurance premiums too high for policies in their own names.
Among the youngest drivers in the UK, 3.5 per cent of them have admitted to driving with no insurance at all, an illegal practise that can result in the car being seized aswell as a fine and penalty points. The fine can be as high as £5000 if the case ends up in the courts and the offender could be disqualified from driving too.
It was also found that 25 per cent of drivers aged 17 to 19 struggled to afford to run their cars a third of which had to get financial assistance from parents. Estimated running costs for young driver’s averages around £1700 per year which works out at around 22 percent of young people income. It was also found that 16 percent of young drivers had running costs of up to £3000 per year.
30 percent of young drivers surveyed stated they did not own their own car but had access to their friends or parents or other family members cars instead. 20 percent of young drivers believed that their insurance would cover them if they were driving someone else’s car.
The AA has stated that the uninsured drivers are costing the insurance industry approximately £380 million which roughly equates to £33 being added on to premiums per year.
