Prime Minister David Cameron has held a summit with several insurance companies in order to look at ways to drive down the cost of car insurance premiums.
The average motor insurance bill is currently £410 – an increase of 17% on last year. But for younger drivers, the costs are far higher.
The average premiums for young drivers are currently £2,977 for male motorists and £1,682 for female motorists.
David Cameron met with cabinet ministers, the Association of British Insurance and insurance firms including Aviva, the Co-op and Zurich.
Cameron pledged to tackle the rise in the number of whiplash claims, dubbing Britain the ‘whiplash capital of Europe.’
Whiplash claims have gone up by more than a third in the past three years, despite the number of car accidents falling by 16% in the same period.
More than 1,500 whiplash claims are being lodged every day, and insurers claim this is putting all premiums up by around £90.
The government has stated that it wants to reduce the number of whiplash claims by using improved medical evidence and increasing the threshold for claims.
Cameron also discussed the increased use of smartbox technology, such as telematics, for young drivers, to help bring down insurance premiums.
Telematics require drivers to adopt a safer driving style, as it measures things like speed, braking and the types of roads used.
“This was an excellent opportunity for the insurance industry to highlight the key issues which it currently faces,” said David Neave, Director of General Insurance at The Co-operative.
“In particular, we're pleased the government wanted to discuss the future role of telematics in reducing the cost of insurance, especially for young motorists,” he added.
The Co-operative is one of several insurance firms that offer telematics to young drivers, to improve safety and bring down costs.
If you are a driver, remember to shop around for the best car insurance.
You can compare car insurance with Money Expert.
