Monthly bills could fall by as much as 20 percent if a new proposal is put into place.
The Association of British Insurers (ABI) has just announced that if the government implements the auto insurance proposals that have been made by the group, young drivers across the United Kingdom could find themselves paying up to 20 percent less than they currently do.
The Safe Young Driver proposals from the ABI would apply to almost 3 million people in the U.K.
Millions of young drivers throughout the country could be able to benefit from these proposals, by experiencing an auto insurance premiums reduction of between 15 and 20 percent. The potential savings for each of these motorists, aged 17 to 24, is estimated to be approximately £370 per year.
At the moment, the average auto insurance premiums for that age group is £1,853, says the group.
These proposals would offer safer drivers within that age group the largest amount of potential auto insurance savings. Among the proposals that have been put forward by the group include the following:
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• A minimum new young driver learning period of one full year.
• A restriction on the number of young passengers that a young driver can have in the car.
• A limit on the nighttime driving for young drivers for the first span of time immediately following passing the driving test.
• A zero blood alcohol limit while driving for the first period of time following the time when the young driver has passed his or her driving test.
The proposals are currently being considered by the government of the United Kingdom. The cost of auto insurance for motorists within this age group has already been a hot topic over the last while, especially in terms of the amount that young women pay following the new regulation against the use of gender in the calculation of premiums.
A few months ago, the ruling from the European Court of Justice went into effect, which banned the use of gender-based pricing for auto insurance premiums. One study indicated that the cost for female drivers rose by approximately 22 percent, on average, due to that new regulation.