VP70 - Limit the Cost of Car Insurance for Young Drivers

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Poll: Should this Petition be passed?
As many of the opinion, Aye (11)
23.4%
On the contrary, No (29)
61.7%
Abstain (7)
14.89%
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PetrosAC
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#1
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#1
Limit the Cost of Car Insurance for Young Drivers

Limit the Cost of Car Insurance for Young Drivers

This petition calls on the government to enact legislation to limit the cost of car insurance for drivers aged 17-21 to a maximum of £1,500. Insurance for young drivers is rising and is unaffordable for many so action needs to be taken to resolve this important issue before costs spiral out of control.


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Life_peer
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#2
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#2
How much?! :eek:

This is one of the most mind-boggling things about the UK from my foreign point of view, actually. Over here, you have to be 18 to drive a car but you can insure a decent brand new 2017 Audi for about 150 euros per year the day after you get your licence. Even better, if your parent legally owns the car, it can be insured for something like 110 euros per year and you can drive it as if it was your own. I saw the part of Top Gear dealing with this but I thought they were partly joking, lol.

It's true that the UK has only 2.9 road fatalities per 100,000 inhabitants whereas we have 6.6 but I think that's due to lower speeds, better infrastructure, and cultural differences (the British are polite and careful whereas Slavs are somewhat crazy and some even like to drink before driving), and we're still better than countries like Belgium, Estonia, Luxembourg, and other developed European countries. I'd wager there's little connection between the cost of insurance for young drivers and the number of accidents, and I think they should be much cheaper.
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Rakas21
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#3
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#3
Was i asleep when i pushed through the abolition of the insurance premium tax?
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StatusRed
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#4
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#4
£1,500 is an abritrary figure. Why should someone who repeatedly crashes into other people etc.. only have to pay a max of £1,500 regardless of how they drive?
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TheDefiniteArticle
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#5
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#5
(Original post by Life_peer)
x
Very surprised to see an arch-Tory vote in favour of price caps which hinder private enterprise.

cf DreamlinerFinder Nirvana1989-1994 Wilhuff Tarkin

I also request my fellow Government MPs CoffeeAndPolitics, notneb and emmald583 change their votes.

This either means that insurers will no longer offer insurance to the relevant age group, or, if Parliament requires they do so, means that the costs of the poor driving of the young will be shifted on to those who have demonstrated they are capable of driving well/safely. I don't see how this makes the market more effective or makes anything any fairer.
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Life_peer
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#6
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#6
(Original post by TheDefiniteArticle)
Very surprised to see an arch-Tory vote in favour of price caps which hinder private enterprise.

cf DreamlinerFinder Nirvana1989-1994 Wilhuff Tarkin

I also request my fellow Government MPs CoffeeAndPolitics, notneb and emmald583 change their votes.

This either means that insurers will no longer offer insurance to the relevant age group, or, if Parliament requires they do so, means that the costs of the poor driving of the young will be shifted on to those who have demonstrated they are capable of driving well/safely. I don't see how this makes the market more effective or makes anything any fairer.
Sorry, but those prices are just bonkers. If global private insurance companies can insure a £40,000 car driven by a complete novice for £130 in one country, why can't they do it in another, especially one with better road network, lower speed limits, and more severe penalties for traffic violations? Why should good and careful novice drivers be punished by obligatory car insurance that often costs more than their car? This is one of the instances where the market is so much skewed that I support state regulation (or some form of insurance offered by the state which will drastically cut the prices and force the private competition to adjust).

Oh, and as for hindered private enterprise, insurance companies can go **** themselves. One of the biggest scams known to mankind. I'd happily hinder the likes of AXA or ING.

I should also mention that I'm only talking about obligatory third-party insurance, not one that, for want of a better phrase, covers one's own injuries or repair costs.
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TheDefiniteArticle
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#7
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#7
(Original post by Life_peer)
Sorry, but those prices are just bonkers. If global private insurance companies can insure a £40,000 car driven by a complete novice for £130 in one country, why can't they do it in another, especially one with better road network, lower speed limits, and more severe penalties for traffic violations? Why should good and careful novice drivers be punished by obligatory car insurance that often costs more than their car? This is one of the instances where the market is so much skewed that I support state regulation (or some form of insurance offered by the state which will drastically cut the prices and force the private competition to adjust).

Oh, and as for hindered private enterprise, insurance companies can go **** themselves. One of the biggest scams known to mankind. I'd happily hinder the likes of AXA or ING.

I should also mention that I'm only talking about obligatory third-party insurance, not one that, for want of a better phrase, covers one's own injuries or repair costs.
The reason why car insurance costs less in your country (LTU if I remember correctly), to be frank, is that earning potential is substantially lower which a) reduces the average value of third party cars, but also b) very substantially mitigates the biggest risk in absolute costs for insurers, which is someone young being disabled and accordingly having to pay lifetime earnings in a PI claim (which in the UK will usually be £800k-£1mm at least for people under 30).
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Jammy Duel
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#8
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#8
Price caps are rarely, if ever, a good idea, and insurance is certainly one where it is not a good idea. There are a few potential outcomes:
1) they won't be able to get insurance at all because insurers won't take on the liability
2) HUGE excesses are required to mitigate the cost to the insurer
3) it simply defers the cost since the price will be increased on older people to compensate for the losses
4) What is covered is reduced

Likely it would be a combination of the above meaning it would be state intervention to the benefit of nobody.
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Jammy Duel
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#9
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#9
So far we have 4 "Tories" voting in favour and 2 abstaining, SHAME!
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Life_peer
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#10
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#10
(Original post by TheDefiniteArticle)
The reason why car insurance costs less in your country (LTU if I remember correctly), to be frank, is that earning potential is substantially lower which a) reduces the average value of third party cars, but also b) very substantially mitigates the biggest risk in absolute costs for insurers, which is someone young being disabled and accordingly having to pay lifetime earnings in a PI claim (which in the UK will usually be £800k-£1mm at least for people under 30).
SK, actually, but I don't believe it justifies such a huge difference. Using 2015 figures from Eurostat, our average wage is about 60% of yours and the employment rate of the 20–64 age group is about 9 percentage points lower, so the earning potential can't be as low as to justify a tenfold or higher increase in insurance price, can it?

The most basic third-party insurance available to us for the price I previously stated covers damages to health up to 5 million euros and to physical property up to 1 million euros, which I think would be quite enough even in the UK (I could cripple four children, one adult, and wreck a couple of Rolls-Royces). I haven't been able to find the UK figures (please point me to them if you can).

In any case, there's also the ‘named driver’ baloney. Over here, it's the car that is insured, not the driver, and sharing the car between let's say two people doesn't increase the cost.
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Life_peer
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#11
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#11
PetrosAC Please change my vote to a no. I agree with the sentiment but the implementation must be more complex than a simple cap.
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Basiil17
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#12
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#12
PetrosAC, please change my vote from Aye to Nay
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Obiejess
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#13
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#13
(Original post by Life_peer)
PetrosAC Please change my vote to a no. I agree with the sentiment but the implementation must be more complex than a simple cap.
Basically this
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PetrosAC
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#14
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#14
(Original post by Life_peer)
PetrosAC Please change my vote to a no. I agree with the sentiment but the implementation must be more complex than a simple cap.
(Original post by DreamlinerFinder)
PetrosAC, please change my vote from Aye to Nay
Two votes have been changed from Aye to No
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Jammy Duel
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#15
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#15
(Original post by PetrosAC)
Two votes have been changed from Aye to No
Your decision not to change votes on a whim doesn't seem to have lasted long
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Basiil17
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#16
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(Original post by Jammy Duel)
Your decision not to change votes on a whim doesn't seem to have lasted long
He was meaning there 2nd vote changes, 1st ones are OK?
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TheDefiniteArticle
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#17
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(Original post by Jammy Duel)
Your decision not to change votes on a whim doesn't seem to have lasted long
(Original post by DreamlinerFinder)
He was meaning there 2nd vote changes, 1st ones are OK?
Also the Speaker doesn't have the jurisdiction to rule out second vote changes.
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PetrosAC
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#18
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#18
(Original post by Jammy Duel)
Your decision not to change votes on a whim doesn't seem to have lasted long
What DreamlinerFinder said. It's only second vote changes
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username2718212
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#19
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#19
PetrosAC


I must concur with the right honourable, Life_peer. Please change my vote to no.
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Jammy Duel
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#20
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(Original post by PetrosAC)
What DreamlinerFinder said. It's only second vote changes
The argument given sounded very much like one that applied to all changes, I believe your wording was along the lines of "vote with conviction"
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