High insurance costs potentially deterring young people from taking jobs

High insurance costs potentially deterring young people from taking jobs

The high cost of insurance for young drivers is potentially putting some off taking a job, one eminent MP suggested recently. The Deputy Speaker of the House of Commons, Nigel Evans, said that many young people may face a real dilemma between whether to take up a job opportunity, or not doing so as the cost of travel to their work place would be so high.

People in rural areas are more likely to be affected as there is less access to regular public transport links, meaning that they would have to rely on their own means of transport to get back and forth from work. However with the cost of an annual car insurance premium for a new or young driver at a record high, many are left wondering whether it’s worth their while taking the job due to the huge amount they’d have to fork out to afford to cover their premiums.

Recent figures released by AA Insurance found that the cost of car insurance for young people has risen by 90% in the space of the last 2 years, pricing many people off the road. As a result of the often unaffordable cost of car insurance, research has found that 1 in 5 youngsters have considered driving without insurance, while 1 in 3 would potentially modify details on their policy in order to obtain cheaper cover.

Due to the fears MP Nigel Evans has over young peoples’ possible reluctance to take job offers due to cost and worry over how to afford travel to their new place of employment, the MP has called upon the insurance industry to become more creative in order to combat the inflated car insurance rates offered to young drivers. Ideas put forward include offering a rebate on part of the premium to a driver if after a year they’ve made no claims, or offering a premium calculated on the basis on the driver’s driving test score.

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