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[holding answer 7 March 2011]: The setting of premiums is a commercial decision for individual insurers and younger drivers pay more because they pose a higher risk to insurers. The Government are, however, taking a number of measures to help mitigate insurance costs, including steps to tackle uninsured driving and insurance fraud and to reduce the costs of litigation.Continuous insurance enforcement will come into effect in the next few months to identify uninsured vehicles, which will make it harder to evade detection and penalties if vehicles are driven without the driver being insured. We are working with insurers to allow them access to the Driver and Vehicle Licensing Agency drivers' database in order to tackle insurance fraud at the underwriting stage. The Ministry of Justice has consulted on measures for reducing litigation costs and working with enforcement agencies and insurers to tackle fraud. These steps will all help to reduce insurance premiums, including for young drivers.We are also considering how the driver testing and training process can be improved to better prepare new drivers for the roads, and therefore reduce their risks and hence insurance premiums. |