"then who the HELL will be paying it?" - Well that would be every young driver who has had at least one accident (however minor). In my experiance (I have no idea of the national situation) around half of the young drivers I know have had a little prang. So for example:
There are 10 young drivers. In one year, 9 have no accidents whilst 1 of them has an accident costing the insurance company £9,000 (neglecting excess). The company wants to make £1000 of profit.
1. the £10,000 (9000 + 1000) is split between the 10 of them to be their yearly fee. So £1000 each.
2. 10 drivers, 5 drivers have had a prang whilst 5 drivers have had no accidents whatsoever. The accident-free drivers fee is capped to £500 ( 500*5 = £2500) so the remaining £7500 is split between the 5 remaining young drivers (therefore £1500 each) ------------------------------------
Regulation - To ensure the insurance companies are offering affordable insurance to drivers who haven't committed any kind of driving offences or errors and are not increasing the fees of other age groups. Similar kind of regulation to mobile phone companies who have been forced to reduce prices for calls abroad as well as texting generally. Also similar to Ofcom regulation of Sky Sports to bring down the price of their sports packages for other Satellite providers as it's being unfair to them
I'm also interested to see where the statistic that the 1st accident someone has is the most major one!
|
|