Insurance providers 'fleeing the young driver market'

An increase has been witnessed in the number of car insurance providers refusing to provide cover for young motorists, it has been reported.

According to the BBC, insurance firms are concerned about rising claims costs, and are becoming increasingly unwilling to accept the greater risks associated with drivers aged between 17 and 22.

The news provider reports that some providers are offering no deals for such motorists, while others are "simply pricing them out of the market".

"There is a particular problem with young drivers crashing with their friends in the car with them - accidents that lead to large liability payouts," the BBC added.

As a result, few providers are offering male, first-time drivers a quote of under £3,500 a year, it is claimed.

Last week, Steve Chelton, insurance development manager at car insurance provider Swinton, said young drivers are particularly at risk of accidents on UK roads, meaning it is vital they gain sufficient experience before taking their test.

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2010-01-26 13:52:00 © Moneyextra.com