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Expert: Providers can improve car insurance for youngsters

Expert: Providers can improve car insurance for youngsters
Date of Publication: Thursday, 22 September 2011 00:00

Providers may have a role to play in making the car insurance market better for younger drivers.

Companies in the car insurance sector should take some responsibility in order to lower premiums attached to policies for young drivers.

This is according to Mike Powell, insight analyst for general insurance at Defaqto, who has called on provides to play their role when it comes to making annual insurance more affordable for this section of society.

Mr Powell insisted that firms can introduce and encourage a wide range of measures targeted at reducing car day insurance premiums in order to maintain this demographic's place in the sector.

Defaqto has published a white paper with ideas for providers on how they can control risk in this area of the market, including a suggestion that they should stop structuring pricing plans based on age.

"If premiums continue to increase within the young driver segment of the motor insurance market, we could see regulatory intervention to control price," Mr Powell warned.

Recently, Robert Gifforrd of the Parliamentary Advisory Council for Transport Safety noted there are affordable deals available to drivers, even in the current financial climate.

By Emma North ADNFCR-2079-ID-800736543-ADNFCR
Thursday, 22 September 2011 00:00
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