Young drivers could become 'uninsurable'
Young drivers could be priced out of the insurance market if action is not taken to reduce the number of deaths and injuries caused by motorists aged under-25, one insurer has warned.Speaking following the release of a new education pack aimed at teaching school pupils about the impact of dangerous driving, Co-operative Insurance (CIS) warned that such drivers were responsible for causing 35 deaths and serious injuries each day, with premiums for youngsters subsequently rising as a result.According to the insurer, the cost of insuring young motorists has jumped by 22 per cent over the past three years, compared to just two per cent for all other drivers.CIS director of general insurance, David Neave, stressed that if the trend continued, a "whole generation" of drivers could become uninsurable."If this trend continues many young car owners will be unable to afford insurance and that will inevitably lead to a rise in the number of uninsured motorists on the roads and that would have major consequences for us all," he warned."The impact of serious road traffic crashes not only affects people's lives but also has a considerable affect on future premium levels," Mr Neave added, stressing that the industry had a "duty" to take action in order improve safety and to make insurance premiums more affordable for young, inexperienced drivers.CIS, which has teamed up with the road safety charity Brake to launch an education pack based on its earlier DVD, Too Young to Die, said that the new resource would help teachers run lessons for 15 to 21-year-olds, encouraging them to act responsibly on the roads.The initiative follows last month's call by the Association of British Insurers (ABI) for learner drivers to be given a minimum one-year 'learning period' before gaining their license in order to cut the number of road deaths.Giving evidence to parliament's transport select committee, ABI director of general insurance Nick Starling also argued that young, newly-qualified drivers should be subject to limits in regard to the number of passengers they are allowed to carry.
Thoresen: National financial help service should be set up
A national service for people to share their money worries with experts has been recommended by the chief executive of insurer Aegon UK, Otto Thoresen.Mr Thoresen was hired by the treasury to conduct an investigation into the creation of the new body - and reported his findings yesterday.Support for the service was found by a poll conducted for the report - with 75 per cent saying that they would...Read More
Is It Worth Using Collateral To Reduce Loan Costs?
When you strip away the hype, the different payment terms and the array of different loan offers in the market the bottom line is the same, the more guarantees you can give to repaying your loan the better the rate. For this reason alone we are seeing more and more people using assets which they hold, such as homes which have been paid off or investment bonds, as collateral in the hope of obtaini...Read More
UK government under pressure to extend car scrappage scheme
As we indicated yesterday, the UK government is coming under increasing pressure to extend the £300 million car scrappage scheme which has seen a significant number of older cars scrapped in exchange for discounts on new vehicles. However, a 31.5% reduction in new car production in August has hit the UK car manufacturing sector very hard with fears of a return to the depressed situation experienc...Read More
G20 leaders make banking bonuses their main target
Today saw the beginning of the G20 summit where all leaders present appear to have agreed a way forward to contain and control banking remuneration packages in the future. Despite the fact that there are so many other issues to consider, none greater than the worldwide economy, it seems that G20 leaders are still looking to grab the headlines as they have done in each and every G20 summit.
Buyouts for company pension schemes to hit £10bn
The value of buyouts for company pension schemes will soar to £10 billion this year, as more and more companies turn to the practice, according to a new report. Actuaries Lane Clark and Peacock (LCP) forecast that at least ten FTSE 100 companies as well as a host of non-listed companies will sell off their schemes this year. LCP said: "The market for transferring pension scheme risk to an insuran...Read More