Fewer Accidents 'Would Mean Lower Insurance Costs'

Insurers would be able to cut the cost of cover for motorists if accident rates came down, it has been claimed.

According to the Association of British Insurers, this is something that may be achieved given time, but it added it is not a short-term solution. The group said another way to reduce the cost of motor insurance premiums was to tackle the number of people who get behind the wheel without cover.

A spokesperson for the group said: "Insurance companies want to reduce uninsured driving because everyone pays for it at the end of the day."

"At the same time insurers have to set the premiums to offset the risks and young people are a higher risk so it's a bit of a catch 22 situation. If we can reduce the accident rate in the long-term we can reduce the cost of insurance but there is no short-term solution to this."

Statistics show that the greatest insurance losses are amongst young inexperienced drivers, particularly men. Although they pay premiums that are typically up to twice that of women of the same age they also make by far the largest claims.

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