Not all young drivers mean trouble. Many are safe and responsible drivers. Should all be penalised because some drive dangerously. MICHAEL McALEER reports
Boy racers are fighting a losing battle these days. Their tendency towards serious collisions, and the resultant high cost of insurance premiums for young drivers, means sightings of baby-faced youths revving at the traffic lights are increasingly infrequent.
Not a bad thing most would agree. However, it's unfair to tar all youths with the same costly brush. Not everyone under 28 years of age is a menace behind the wheel, just as not everyone over 28 is a naturally gifted driver.
Yet this is exactly the type of generalisation which means that only the keenest young motorist, with a large wallet or a friendly bank manager, can afford the exorbitant insurance rates. These can run to over €4,000 a year and, while it's slightly cheaper for young females, young drivers pay much more than twice the average car insurance premiums.
As a result drivers under 24 years make up only six per cent of those who drive regularly compared with the European average of 14 per cent.
Take David Green. At 21 and with one year's no claims bonus, he paid €4,430 to insure his Honda Civic. This despite never having an accident and holding a full driving licence. The steep premiums drove Green to take a case under the Equal Status Bill alleging age discrimination. He is also due to run on the insurance issue in the forthcoming general election for the Motor Insurance Justice Action Group, set up to protest against the cost of insurance for young drivers.
High premiums have even forced some young drivers to go ahead and take out insurance policies in order to get a certificate - then they simply don't pay the premiums and drive un-insured. This in turn drives up premiums for everyone. According to the Insurance Industry Federation, uninsured drivers are currently costing insured policyholders an estimated £57 per insured vehicle per year.
Most of the agencies including the AA, SIMI, Irish Insurance Federation, Deloitte and Touch Consultants and Government officials say the only answer for young drivers is * safer driving practices.
A National Roads Authority report for 2000 found that 25 per cent of all injury accidents reported to Gardai involved at least one young driver. It also stated that accidents involving young drivers tended to be more severe.
What's more, compared to older drivers, young drivers were deemed to be to a large extent responsible for a higher proportion of the fatal/injury accidents in which they were involved. Young car drivers accounted for 37 per cent of all car drivers killed and 26 per cent of all injuries sustained. These are high statistics considering that the category accounts for less than 10 per cent of all road users.
So it may be understandable if premiums are weighted against this group of drivers. However, it's not a level playing pitch. There is often a significant disparity between the companies. While many will not even quote for drivers under 28, those that do significantly vary in their quotations.
In a survey carried out by the Consumer Association of Ireland last October, Ireland's top nine insurance companies provided quotes for four sample individuals. One of these was Paul, a 25-year-old machine operator from Waterford. He was quoted by FBD for third-party cover at €1,290, compared with AA's €1,065. The largest disparity was in the companies' quotes for a comprehensive policy for Paul. He was quoted €1,137 by Eagle Star and €2,006 by First Call Direct, a difference of €869.
So what are the solutions to this impasse. One recent suggestion came from the insurance company AXA who sponsored a trial of a satellite tracking system for young drivers.
However, the fact that it cost £1,500 and that some young drivers would consider putting themselves under such scrutiny by insurance company shows just how desperate some drivers are.
Another suggestion is the creation of a Government-run insurance company for young drivers. However, no one really believes the Government wants to go down this road in the foreseeable future.
The best method, of course, would be to improve driving standards. One company taking this on board is Hibernian, with its 'Ignition scheme' for inexperienced drivers. The scheme, an advanced drivers course launched ast August in association with the Institute of Advanced Motorists (IAM) UK, rewards successful participants with a potential 30 per cent discount on their Hibernian private motor Insurance premium.
ASIDE from improving the overall quality of driving skills, another way to reduce the premiums is through increased competition in the insurance industry. Despite claims by the industry that young drivers are a burden, the Motor Insurance Advisory Board's interim report claimed that insurance companies make at least £211 profit on each young driver policy as opposed to £60 for older driver policies. If we can attract more competition to the Irish market, perhaps then we will see a reduction in the insurance premiums.
Until that day comes, we must hope that eventually the long-awaited points system will be taken into account and premiums will reflect individual standards and not simply discriminate on age.
BOY RACERS are fighting a losing battle these days. Their tendency towards serious collisions, and the resultant high cost of insurance premiums for young drivers, means sightings of baby-faced youths revving at the traffic lights are increasingly infrequent.
Not a bad thing most would agree. However, it's unfair to tar all youths with the same costly brush. Not everyone under 28 years of age is a menace behind the wheel, just as not everyone over 28 is a naturally gifted driver.
Yet this is exactly the type of generalisation which means that only the keenest young motorist, with a large wallet or a friendly bank manager, can afford the exorbitant insurance rates. These can run to over €4,000 a year and, while it's slightly cheaper for young females, young drivers pay much more than twice the average car insurance premiums.
As a result drivers under 24 years make up only six per cent of those who drive regularly compared with the European average of 14 per cent.
Take David Green. At 21 and with one year's no claims bonus, he paid €4,430 to insure his Honda Civic. This despite never having an accident and holding a full driving licence. The steep premiums drove Green to take a case under the Equal Status Bill alleging age discrimination. He is also due to run on the insurance issue in the forthcoming general election for the Motor Insurance Justice Action Group, set up to protest against the cost of insurance for young drivers.
High premiums have even forced some young drivers to go ahead and take out insurance policies in order to get a certificate - then they simply don't pay the premiums and drive un-insured. This in turn drives up premiums for everyone. According to the Insurance Industry Federation, uninsured drivers are currently costing insured policyholders an estimated £57 per insured vehicle per year.
Most of the agencies including the AA, SIMI, Irish Insurance Federation, Deloitte and Touch Consultants and Government officials say the only answer for young drivers is * safer driving practices.
A National Roads Authority report for 2000 found that 25 per cent of all injury accidents reported to Gardai involved at least one young driver. It also stated that accidents involving young drivers tended to be more severe.
What's more, compared to older drivers, young drivers were deemed to be to a large extent responsible for a higher proportion of the fatal/injury accidents in which they were involved. Young car drivers accounted for 37 per cent of all car drivers killed and 26 per cent of all injuries sustained. These are high statistics considering that the category accounts for less than 10 per cent of all road users.
So it may be understandable if premiums are weighted against this group of drivers. However, it's not a level playing pitch. There is often a significant disparity between the companies. While many will not even quote for drivers under 28, those that do significantly vary in their quotations.
In a survey carried out by the Consumer Association of Ireland last October, Ireland's top nine insurance companies provided quotes for four sample individuals. One of these was Paul, a 25-year-old machine operator from Waterford. He was quoted by FBD for third-party cover at €1,290, compared with AA's €1,065. The largest disparity was in the companies' quotes for a comprehensive policy for Paul. He was quoted €1,137 by Eagle Star and €2,006 by First Call Direct, a difference of €869.
So what are the solutions to this impasse. One recent suggestion came from the insurance company AXA who sponsored a trial of a satellite tracking system for young drivers.
However, the fact that it cost £1,500 and that some young drivers would consider putting themselves under such scrutiny by insurance company shows just how desperate some drivers are.
Another suggestion is the creation of a Government-run insurance company for young drivers. However, no one really believes the Government wants to go down this road in the foreseeable future.
The best method, of course, would be to improve driving standards. One company taking this on board is Hibernian, with its 'Ignition scheme' for inexperienced drivers. The scheme, an advanced drivers course launched ast August in association with the Institute of Advanced Motorists (IAM) UK, rewards successful participants with a potential 30 per cent discount on their Hibernian private motor Insurance premium.
ASIDE from improving the overall quality of driving skills, another way to reduce the premiums is through increased competition in the insurance industry. Despite claims by the industry that young drivers are a burden, the Motor Insurance Advisory Board's interim report claimed that insurance companies make at least £211 profit on each young driver policy as opposed to £60 for older driver policies. If we can attract more competition to the Irish market, perhaps then we will see a reduction in the insurance premiums.
Until that day comes, we must hope that eventually the long-awaited points system will be taken into account and premiums will reflect individual standards and not simply discriminate on age.