Spiralling Costs Of Motoring Leads To More Accidents Says Poll

Thu 27th Jun 2019

Newly qualified drivers are taking longer to get on the road and that in turn is creating a generation of hesitant drivers lacking confidence according to a new poll.

The new study from motor insurer Marmalade has shown that more than a quarter of drivers under 30 have spent six months or longer without driving after passing their test, and that lack of immediate experience is leading to a higher risk of accidents.

One in 20 drivers polled suggested that they were likely to be more dangerous on the roads due to the lack of practice.

“There is a clear – and worrying – correlation between young drivers taking an extended break from the road and the likelihood of having an accident,” says Crispin Moger, chief executive of Marmalade. 

“With more than a third of young drivers citing cost as the main reason for time off the road, insurance providers have a clear responsibility to help more young people get behind the wheel after their test. 

“This time is crucial for developing their confidence and ability, which ensures the safety of themselves and other road users.”

A separate report from Compare The Market pinpoints two elements of Government legislation which is directly driving up the price of car insurance.

The Insurance Premium Tax has doubled from 6 per cent in 2015, to 12 per cent today, and these costs have been passed on to motorists in the price of a policy. Insurers also have to have more money in reserve to pay out for life-changing motoring injuries. Known as the ‘Ogden’ rate, it is another factor which is passed on to drivers.

Dan Hutson, head of motor insurance at Compare The Market, said: “These figures demonstrate the direct impact that government changes have had on the financial health of British motorists. The changes to IPT and the Ogden rate have punished those who can afford it the least – the young – many of which need a car to get to their jobs. 


“There is little doubt that the IPT rises were seen as an easy way to raise money from British taxpayers, having doubled the tax take from £3bn in 2014-2015 to £6.2bn in 2018-2019, but the impact will have been felt by ordinary people who rely on their car.


“For a long time now, we have been calling for the government to reform insurance premium tax, particularly for young people who faced the largest hikes despite being able to afford it the least. The government should scrap IPT for young drivers which would help ease the financial burden of car ownership.”