Young uninsured driver convictions doubles due to spike in car insurance premiums

A huge spike in car insurance premiums is fuelling an “epidemic of uninsured drivers” as the number of convictions of young drivers doubles.

New research from Charity IAM RoadSmart found 6,316 British drivers aged 17 to 20 were convicted of driving without insurance in 2023 - more than double from 2,902 in 2021.

The spike began in 2022 when 5,486 IN10 endorsements for penalty points were added to records of motorists convicted of driving a vehicle uninsured against third-party risk.

Young drivers face a £300 fixed penalty, six penalty points and the possibility of being taken to court, where punishments are often tougher.

Shadow transport secretary Louise Haigh said “soaring inflation, pothole-ridden roads and rising car thefts” had driven up insurance costs.

She said: “It is time for ministers to call in the regulators, crack down on any unfair practices, and come clean on the causes of soaring costs for consumers.”

IAM RoadSmart said the increase in convictions for young drivers coincides with a 25 per cent rise in average motor insurance premiums between 2022 and 2023.

The charity urged the Treasury to halve the standard 12 per cent rate of insurance premium tax (IPT) on motoring policies for drivers aged under 25.

It also called for IPT to be zero for licence holders in that age category who have completed an approved driving or riding course.

IAM RoadSmart director of policy Nicholas Lyes said it was “deeply concerning” to see a surge in young drivers breaking the law in this way.

“Unless there is intervention, we risk an epidemic of uninsured younger motorists taking to the roads,” he added.

“Sadly, this is likely a consequence of the soaring costs of insurance premiums over the last 18 months.

“For young drivers who have recently passed their test, the cost of learning to drive, getting a vehicle, taxing it and then insuring it is becoming an extremely costly process.

“While the insurance sector believes we may now be over the worst of price increases, falling premiums will feel like a lifetime away for newly qualified drivers.”

Jonathan Fong, manager of general insurance policy at the Association of British Insurers, said: “It goes without saying that motorists should never be tempted to drive without insurance.

“In 2022, the average payout for drivers aged between 17 to 20 was 74 per cent higher than for those aged 46 to 50.

“Sadly, young drivers are also more likely to be involved in crashes resulting in multiple serious injuries, which could lead to very high insurance payouts.”

A government spokesman said: “The overall cost of insurance is determined only in part by Insurance Premium Tax, which contributes over £8 billion a year towards vital public services. The rate has been frozen since 2017, and the extent to which IPT is passed on to customers is a decision for insurers.”