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Young drivers are ‘clueless’ about car insurance

Young drivers are ‘clueless’ about car insurance

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Young drivers are ‘clueless’ about car insurance and tend to take out policies on price alone, according to a price comparison site.

GoCompare commissioned research that showed 65 per cent of 18-24-year-old drivers were buying insurance based purely on cost.

Perhaps of even more concern is the fact that only 47 per cent even check cover levels to make sure it’s exactly what they need and they know what they’re getting.

The survey also asked these drivers about their knowledge of important insurance terms, which proved a worrying lack of knowledge of important aspects of their cover. For example, only a third of drivers understood the term ‘social, domestic and pleasure’, which determines how a car is being used. Failing to adhere to these rules could invalidate a driver’s insurance.

Furthermore, of those who’d recently made a claim, a fifth hadn’t relaised they’d have to pay an excess, 11 per cent didn’t realise the voluntary excess was added to the compulsory excess, and nine per cent found the excess was higher than the value of their car.

Commenting on the research Lee Griffin, CEO and founder of GoCompare said, “Insurance is an essential element in driving.  Not only is it a legal requirement to hold insurance, in the event of an accident, it provides financial protection for vehicle damage and, injuries to passengers, other drivers and pedestrians. 

“Insurance policies differ wildly in the amount of cover they offer.  So, when arranging cover price shouldn’t be the only factor you think about.  It’s vitally important to pick a policy that suits your needs and personal circumstances.  Otherwise, you could find yourself without cover when you need it most.”